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ReNew Energy Q2 Net Profit Declines 5 % Amid Higher Costs

ReNew Energy Global Plc reported a 5% year-on-year decline in its consolidated net profit to Rs 467 crore for the July–September quarter (Q2 FY26), impacted by higher raw material and finance costs and lower plant load factors (PLFs).

Revenue during the quarter rose 29% year-on-year to Rs 3,856 crore, supported by increased operational capacity and external sales from solar module and cell manufacturing operations. However, this growth was partially offset by revenue losses from 600 MW of assets sold across Q4 FY25 and Q1 FY26.

The company said the decline in profit was “primarily driven by higher raw material and consumables usage, increased finance costs, and lower PLFs, partially offset by higher manufacturing-related revenues and lower tax incidence.”

Raw material and consumable costs surged to Rs 561 crore, compared to just Rs 41 crore in the same quarter last year.

Finance costs, along with fair value changes in derivative instruments, rose 21.7% to Rs 1,533 crore, reflecting higher operational assets and financing costs tied to manufacturing activities.

The weighted average PLF for wind assets stood at 37.3%, down from 38.3% a year ago, while solar PLF declined to 19.4% from 21.8%.

As of September 30, 2025, ReNew Energy reported net debt of Rs 65,277 crore ($7.35 billion) and cash and cash equivalents of Rs 9,758 crore ($1.09 billion).