ReNew Energy Q1 results eyed ahead of privatization talks

Investors will focus on ReNew Energy Global’s first-quarter earnings report, due after U.S. markets close on Thursday, as the company’s privatization prospects come into sharper view.

The Indian renewable energy developer, which listed on Nasdaq via a SPAC merger in 2021, is expected to report adjusted net income and revenue figures that reflect its operational performance amid volatile power markets. Analysts anticipate a modest year-over-year decline in earnings, citing softer merchant power prices in India and higher financing costs.

ReNew’s privatization bid has gained traction in recent weeks, with reports indicating the Indian government is exploring a potential stake sale to strategic investors. The move aligns with New Delhi’s broader push to reduce state ownership in renewable energy assets, though no formal timeline has been disclosed. The company’s board has not commented on the matter.

The earnings call will likely provide clarity on ReNew’s debt levels, cash flow generation, and progress on its 4.2 gigawatt renewable capacity pipeline. Investors will also seek updates on the company’s hedging strategies and exposure to India’s regulated power purchase agreements, which offer more stable pricing than merchant markets.

Shares of ReNew have underperformed the broader Indian renewables index this year, reflecting concerns over execution risks and regulatory uncertainty. The stock closed at $3.12 on Wednesday, down 12% from its 2024 high.

Market watchers will gauge whether the earnings report and privatization discussions can restore confidence in ReNew’s long-term growth trajectory.