Synopsis:
JSW Energy reported a 71% YoY and QoQ increase in Q1FY26 power generation, driven by major capacity additions. The company is on track to achieve its 30 GW capacity goal by FY30 with strategic investments in renewables, storage, and equipment manufacturing.
The company is making significant strides in power generation and renewable capacity expansion, positioning itself as a key player in India’s clean energy transition. Its Q1FY26 performance highlights robust growth, strategic investments, and strong long-term targets.
With market capitalization of Rs. 92,142cr, the shares of JSW Energy Ltd. are currently trading at Rs. 531 per share, increasing 4% today from its previous close of Rs. 511.65 per share.
Rationale
Axis Securities has a Buy call on JSW Energy with a target of ₹705, implying a 32.77% upside from current levels. In Q1FY26, JSW Energy increased its installed capacity from 10.9 GW to 12.8 GW, adding 1.9 GW largely from the acquisition of the O2 portfolio and 550 MW of new renewable projects. This led to a 71% rise in power generation to 13,494 MUs. The company plans to add 3–4 GW of organic capacity in FY26 and is targeting 30 GW installed capacity by FY30. It currently has 12,983 MW under construction, of which 11,383 MW are renewable.
Strategically, JSW is investing Rs. 165–180 crore in a 5 GW battery assembly plant in Pune and in wind blade manufacturing facilities across India. These efforts aim to enhance cost efficiency and self-reliance. The company has also reduced exposure to volatile merchant markets by securing PPAs and focusing on domestic coal-based generation.
With 11.8 GW of its current capacity tied to PPAs and 29.4 GWh of locked-in energy storage (targeting 40 GWh/5 GW by 2030), JSW estimates a total capex of Rs. 1.3 lakh crore to fuel its long-term growth.
About the company
JSW Energy is one of India’s leading private power producers and a key company within the JSW Group. It is primarily engaged in electricity generation across thermal, hydro, solar, and wind power sources. With a diversified energy portfolio, the company supplies power to both industrial consumers and state utilities. Over the years, JSW Energy has expanded its operations into power transmission and trading, further strengthening its presence in the energy value chain.
It is also investing in battery assembly and wind equipment manufacturing to support its green energy ambitions. As part of its long-term vision, JSW Energy aims to increase its total installed capacity to 30 GW by 2030, with a majority contribution from renewables.
Q1FY26 Results
JSW Energy delivered a strong financial performance in Q1 FY26, with sales surging by 79% year-on-year to Rs. 5,143 crore from Rs. 2,879 crore in June 2024. EBITDA nearly doubled with a 97% rise to Rs. 2,789 crore, reflecting enhanced operational efficiency and capacity expansion. Net profit grew by 42% to Rs. 836 crore, compared to Rs. 534 crore in the same period last year.
Compared to the previous quarter (Q4FY25), JSW Energy reported significant sequential growth in Q1 FY26. Sales rose by 61% from Rs. 3,189 crore to Rs. 5,143 crore, while EBITDA more than doubled, increasing 131% from Rs. 1,204 crore to Rs. 2,789 crore. Net profit also surged by 101% from Rs. 415 crore to Rs. 836 crore.
Written by Manideep Appana
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
