Stock Markets February 16, 2026

ReNew Energy Posts Strong Q3 as Adjusted Ebitda Jumps 54%

Quarterly earnings exceed estimates; company lifts lower end of fiscal 2026 adjusted Ebitda guidance while maintaining cash flow and capacity targets

By Sofia Navarro
ReNew Energy Posts Strong Q3 as Adjusted Ebitda Jumps 54%

ReNew Energy reported a 54% year-over-year rise in adjusted Ebitda for the third quarter, delivering 21.38 billion rupees and beating analyst expectations of 17.05 billion rupees. Revenue climbed 36% to 25.14 billion rupees. The company raised the lower bound of its fiscal 2026 adjusted Ebitda guidance to a range of 90 billion to 93 billion rupees, kept cash flow to equity guidance unchanged at 14 billion to 17 billion rupees, and reaffirmed plans to complete 1.8 to 2.4 GW of capacity by the end of fiscal 2026.

Key Points

  • Adjusted Ebitda rose 54% year-over-year in Q3 to 21.38 billion rupees, surpassing analyst expectations of 17.05 billion rupees.
  • Revenue increased 36% year-over-year to 25.14 billion rupees.
  • ReNew Energy raised the lower bound of fiscal 2026 adjusted Ebitda guidance to a range of 90 billion to 93 billion rupees, while keeping cash flow to equity guidance at 14 billion to 17 billion rupees and targeting 1.8 to 2.4 GW of capacity completion by the end of fiscal 2026.

ReNew Energy reported robust third-quarter results, with adjusted Ebitda increasing 54% year-over-year to 21.38 billion rupees, comfortably above analyst expectations of 17.05 billion rupees. The company also posted revenue of 25.14 billion rupees for the quarter, a 36% rise from the comparable period a year earlier.

The quarterly performance prompted management to update its fiscal 2026 outlook for adjusted Ebitda. The revised guidance now ranges from 90 billion to 93 billion rupees, an upward change to the lower end from the prior guidance of 87 billion to 93 billion rupees. Current analyst consensus sits at 92.62 billion rupees.

Management left its forecast for cash flow to equity unchanged. The company continues to project cash flow to equity in a band of 14 billion to 17 billion rupees for the fiscal year. That projection remains part of the companys publicly stated financial plan for fiscal 2026.

On capacity expansion, ReNew Energy reiterated its expectation to finish construction of between 1.8 and 2.4 gigawatts of generation capacity by the close of fiscal year 2026. The companys published target for capacity completion remains a defined range rather than a single figure.

The quarters outperformance on adjusted Ebitda and the resulting guidance tweak were the central takeaways from the release. Revenue growth of 36% and a significantly higher adjusted Ebitda year-on-year underline the operating progress reported for the period. At the same time, the company preserved its cash flow to equity outlook and reiterated its capacity completion plan for fiscal 2026.

Investors and market participants now have an updated adjusted Ebitda range for fiscal 2026 to compare with the analyst estimate of 92.62 billion rupees, while cash flow and capacity targets provide additional points of reference for assessing the company's near-term operational trajectory.


Financial snapshot (quarter)

  • Adjusted Ebitda: 21.38 billion rupees (up 54% year-over-year)
  • Analyst expectation for adjusted Ebitda: 17.05 billion rupees
  • Revenue: 25.14 billion rupees (up 36% year-over-year)

Updated fiscal 2026 outlook

  • Adjusted Ebitda guidance: 90 billion to 93 billion rupees (previously 87 billion to 93 billion rupees)
  • Analyst estimate for fiscal 2026 adjusted Ebitda: 92.62 billion rupees
  • Cash flow to equity guidance: 14 billion to 17 billion rupees (unchanged)
  • Expected capacity completion by end of fiscal 2026: 1.8 to 2.4 gigawatts

Risks

  • Guidance remains expressed as ranges for adjusted Ebitda (90 billion to 93 billion rupees) and capacity completion (1.8 to 2.4 GW), reflecting inherent uncertainty in achieving the precise outcomes stated.
  • Cash flow to equity guidance is unchanged at 14 billion to 17 billion rupees, which indicates that while Ebitda guidance was adjusted, projected cash generation for equity holders was not increased and remains within a defined band.
  • Analyst consensus for fiscal 2026 adjusted Ebitda stands at 92.62 billion rupees; the companys updated guidance still spans above and below that estimate, leaving room for variance between company targets and external forecasts.

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