Valued at a market cap of $2.9 billion, ReNew Energy Global (NASDAQ:RNW) is India’s largest renewable energy company.
India requires substantial amounts of new electricity as its economy is experiencing rapid growth. For instance, cities are expanding, and millions of people are getting air conditioning for the first time. All this creates massive demand for clean, reliable power.
ReNew Energy sits right in the middle of this opportunity. The company builds and operates wind farms and solar plants across India. It sells electricity through long-term contracts that guarantee stable cash flows for decades.
RNW stock provides investors with an opportunity to profit from India’s energy transformation. The company combines steady revenues from existing projects with growth from new capacity additions.
Recent performance shows strong momentum. Total income hit $895 million in fiscal 25 (ended in March), up 2.3% from the prior year. However, profits jumped significantly as net income reached $150 million, a 67% year-over-year increase.
Management maintains ambitious growth targets, aiming to reach 45 gigawatts of capacity by 2030. That’s more than double the current 18.5 gigawatts.
ReNew Energy Stock Profile: Building India’s Clean Energy Infrastructure
ReNew Energy operates across India’s renewable energy value chain. The business model focuses on developing, building, and operating clean power projects.
Wind and Solar Portfolio: ReNew owns 18.5 gigawatts of renewable energy capacity. This includes operating projects and those under construction. The mix spans wind farms, solar plants, and hybrid facilities that combine both technologies.
Total commissioned capacity stands at 10.1 gigawatts. Another 8.4 gigawatts are either under construction or in advanced stages of development.
Long-Term Contract Model: ReNew doesn’t sell power on spot markets. Instead, the company signs 25-year power purchase agreements with government utilities and large corporations.
These contracts provide predictable cash flows as customers agree to buy electricity at fixed prices regardless of market conditions, which protects ReNew from price volatility.
Geographic Diversification: Projects operate across 15 Indian states, while the largest concentrations are in Rajasthan, Karnataka, Maharashtra, and Gujarat. These regions offer excellent wind and solar resources.
State-level diversification reduces regulatory risk. If one state changes policies, it doesn’t affect the entire portfolio.
RNW Stock: Strong Financial Performance and Improving Margins
ReNew Energy reported solid financial results for the fiscal year 2024-25 ended March 31, 2025.
Revenue and Income Growth: Total income reached $895 million, up 2.3% year-over-year. Revenue from operations hit $878 million, showing stable performance from the existing portfolio.
Other income jumped 32% to $46 million. This primarily resulted from interest income on cash deposits and gains from the sale of renewable energy certificates.
Profitability Surge: Net profit hit $150 million, up 67% from the prior year. This significant improvement resulted from enhanced operational efficiency and lower financing costs.
EBITDA grew 11% to $604 million, and EBITDA margins improved to 68.6% from 65.5% the previous year. These are excellent margins that reflect the low operating costs of renewable energy projects.
Strong Cash Generation: ReNew generated $691 million in operating cash flow during the year. The company invests heavily in new projects, leading to negative free cash flow in the short term.
However, once projects start operating, they generate cash for 25 years or more with minimal additional investment. This creates long-term value for shareholders.
Debt Management: Total debt stands at $6.76 billion. Net debt equals $6.34 billion after accounting for $420 million in cash.
The debt-to-equity ratio is 2.5x, which is reasonable for capital-intensive infrastructure projects. Interest costs are manageable thanks to low-cost financing from international lenders.
RNW Stock: Environmental Impact Champion
Clean Energy Production: ReNew generated 22.2 billion kilowatt-hours of clean electricity in fiscal 2024-25.
It avoided 18.7 million tons of CO2 emissions compared to coal-fired power, equivalent to removing roughly four million cars from the road for a year. The impact is substantial, accounting for approximately 0.5% of India’s total carbon emissions.
Water Conservation Leadership: ReNew deployed waterless robotic cleaning systems at solar plants. These robots use dry cleaning methods instead of washing panels with water.
The technology saved 216,533 kiloliters of water in fiscal 2024-25. That’s enough water for 54,000 people for an entire year in water-stressed regions.
Biodiversity Protection: The company conducts biodiversity assessments before initiating new projects. It avoids building in ecologically sensitive areas.
ReNew also implements habitat restoration programs in conjunction with its existing projects. These efforts protect local wildlife while generating clean energy.
Social Impact Through Energy Access: ReNew’s projects power millions of homes and businesses across India. Clean, affordable electricity supports economic development in rural areas where many projects are located.
The Bull Case for ReNew Energy Stock
ReNew Energy benefits from multiple growth drivers that are expected to accelerate in the coming years.
India’s Energy Demand Surge: India’s electricity demand is growing at a rate of 6-7% annually. The government aims to have renewable energy supply most of this new capacity, creating a massive market for companies like ReNew.
Policy Support: India is committed to 500 gigawatts of renewable capacity by 2030. Federal and state governments offer attractive incentives for clean energy projects, providing developers with long-term visibility.
Cost Competitiveness: Solar and wind power now cost less than coal in India, which makes renewable energy the economically rational choice for new capacity additions.
Capacity Expansion: Management targets 45 gigawatts by 2030, representing 24% annual growth from current levels—projects already under construction or in late-stage development support near-term targets.
Margin Improvement: As older, higher-cost projects are rolled off the books, newer projects with better economics take their place. This should drive continued margin expansion over time.
Analyst forecasts show explosive growth ahead. Revenue is forecast to climb from $1.13 billion in fiscal 2025 to $2.17 billion by fiscal 2028. That represents 25% annual growth.
Earnings growth will be even faster. Net income is projected to jump from $53 million in fiscal 2025 to $246 million in fiscal 2028. That equals 67% annual growth.
The company recently secured significant financing. British International Investment committed $100 million in May 2025, and ReNew has raised $4 billion through green bonds and sustainable funding.
These funds support aggressive capacity additions, and Management expects to commission 3-4 gigawatts of new projects annually over the next several years.
Corporate power purchase agreements are increasing as large companies seek renewable energy to meet their sustainability goals. Notably, ReNew signed deals with Microsoft, Tata Steel, and other major customers.
These corporate contracts offer better pricing than government utility deals and diversify revenue sources beyond state electricity boards.
Conclusion: Powering India’s Economic Growth
RNW stock positions investors at the center of India’s energy transformation. The country must add massive new electricity capacity. Renewable energy will provide most of this growth.
Revenue could nearly double from $1.13 billion to $2.17 billion between fiscal 2025 and 2028, while net income could quintuple from $53 million to $246 million over the same period.
ReNew’s competitive advantages include scale, execution capability, and access to low-cost capital. The company has built more renewable capacity than any other private developer in India.
Environmental leadership enhances investment appeal, as ReNew ranks in the top half of global utilities for its impact. The company delivers measurable climate benefits while generating profits.
Given the company’s growth trajectory, market position, and India’s energy needs, RNW stock offers compelling value for investors seeking exposure to renewable energy infrastructure with strong ESG credentials.