RPOWER Q4 FY26 Results Analysis: EBITDA Margin Expands 322 bps, Normalized PAT Turns Positive

RPOWER's Q4 FY26 numbers came in soft, with revenue of Rs. 1,887.26 Cr (-4.59% YoY) and PAT growth of -493.65% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

RPower reported a Q4 FY26 net loss of Rs.494 Cr after a Rs.382 Cr impairment at its RSTEPL subsidiary. However, normalized operating performance improved significantly - EBITDA margin expanded 322 bps to 31% for FY26 and normalized PAT turned positive at Rs.45 Cr vs a loss of Rs.283 Cr in FY25. Cash generation remained strong with CFO at 1.20x EBITDA. Near-term overhangs include the SMPL guarantee invocation (IBC petition filed), ongoing SEBI forensic audit, and ED proceedings. Liquidity remains stressed with Current Ratio at 0.14.

Key Investment Insights

Key Positives

• Normalized PAT turned positive at Rs.45 Cr in FY26 vs loss of Rs.283 Cr in FY25
• EBITDA margin expanded 322 bps to 31.0% for FY26
• Operating cash flow strong at Rs.2,824 Cr (1.20x EBITDA)
• Free cash flow of Rs.2,708 Cr generated, up 29.5% YoY
• Debt-to-equity ratio improved to 0.42 (standalone)
• Sasan UMPP maintained industry-leading 90.6% PLF for 4 consecutive years

Risk Factors

• Rs.382 Cr impairment at RSTEPL due to technology failure
• Q4 FY26 net loss of Rs.494 Cr after impairment
• Current Ratio critically low at 0.14 indicating liquidity stress
• SMPL guarantee invoked, IBC petition filed by US Exim Bank
• SEBI forensic audit and ED proceedings ongoing
• 34.32 crore warrants lapsed, Rs.3,026 Cr forfeited