On August 18, ReNew Energy Global (NASDAQ:RNW) reported first-quarter fiscal 2027 results that arrived alongside a much bigger headline than any single quarter usually carries: a binding agreement to take the company private. The operating numbers told a familiar story of a renewable energy developer scaling its portfolio while wrestling with grid bottlenecks in India. But the deal announced on August 11, a $7.02-per-share cash offer from a consortium led by CPPIB and founder Sumant Sinha, is the piece shareholders are actually weighing right now.
A Portfolio Still Expanding Fast
ReNew grew adjusted EBITDA 12% year over year to INR 30.4 billion, or $321 million, while net profit climbed 16% to INR 6 billion, or $63 million. Operating capacity reached 13.5 gigawatts, up 26% year over year once divested assets are stripped out, and the total portfolio now sits at 20.5 gigawatts including 1.7 gigawatts of battery storage. Collections improved too. After receiving INR 57 billion from the Andhra Pradesh DISCOM, days sales outstanding fell to 54 as of July 31, 2026, from 71 at the end of June.
The company is also leaning on its relationships with large corporate buyers. Its commercial and industrial portfolio stands at 2.9 gigawatts, with Amazon, Microsoft, and Google together accounting for roughly half of the contracted offtake, and LeapFrog Investments recently put $95 million into an 11.3% stake in that business. Add a signed sale of 1.05 gigawatts of solar assets to Purvah Green Power for $191 million, and the picture is a company still finding buyers and partners willing to pay up for its assets, even as it prepares to go private.
Margins And Debt Tell A Different Story
Not every line moved in the right direction. Manufacturing EBITDA margin contracted to 34% from 40% a year earlier, as management pointed to increased global supply and pricing pressure in solar equipment, and guided for further normalization in the back half of the year. Grid curtailment in Rajasthan, tied to delayed transmission build-out, pulled the solar plant load factor down to 22.4% from 24.6%, while wind load factor slipped slightly to 32.0% from 32.8%.
The balance sheet carries real weight as well. Net debt stood at INR 697.1 billion, or $7.4 billion, putting leverage at 5.7 times adjusted EBITDA. Cash flow to equity actually fell to INR 12.8 billion from INR 15.3 billion, a decline management attributed to higher interest payments and scheduled loan repayments. None of this derails the growth story, but it is the kind of detail that matters more, not less, once a buyout is on the table and financing terms come under scrutiny.
What The Market Is Pricing In
Hedge fund ownership rose from 21 funds to 23 in the most recent count, a modest but real uptick in institutional interest. Short interest sits at just 2.03% of float, suggesting little organized skepticism about where the stock trades from here. As of August 26, the forward P/E of 21.98 reflects a market that has already priced in a fair amount of the growth ReNew is delivering.
The Real Question For Shareholders
ReNew heads into the rest of fiscal 2027 with a business that is growing on nearly every operating metric, from capacity to earnings to collections, while still carrying the debt load and margin pressure that come with building infrastructure at scale. The take-private offer adds a layer that operating results alone cannot answer: whether $7.02 a share properly values a company still expanding its manufacturing footprint and its hyperscaler relationships.
READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In.
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center