JSW Energy — Q1 FY27 earnings call

Call held 22 Jul 2026

Management summary

JSW Energy reported a landmark Q1 FY27 with significant capacity additions of 873 MW and a substantial capital raise of ₹10,150 crores, bolstering liquidity and improving net leverage to 4.95x. While EBITDA saw marginal growth, PAT declined due to increased depreciation and interest from new asset commissioning. The company is on track for its FY27 capacity targets, with strategic acquisitions and backward integration initiatives progressing.

Highlights

  • Capacity additions of 873 MW in Q1 FY27, contributing to 1.1 GW since April 2026, puts the company on track for its 3 GW FY27 target.

  • Successful capital raise of ₹10,150 crores significantly strengthened the balance sheet and liquidity, with cash balances of ₹12,880 crores.

  • Net Debt to TTM EBITDA improved to 4.95x from 5.2x in FY26, demonstrating deleveraging efforts.

  • Early commissioning of Tidong Hydro (150 MW) contributed an incremental ₹20-22 crores to Q1 EBITDA.

  • Thermal plants maintained high PLF (over 85%) and availability (over 90%) in July, with fixed costs recovered even during backdowns.

Concerns

  • PAT declined year-on-year to ₹533 crores (attributable to shareholders ₹471 crores) due to higher capitalization impact, depreciation (up 20% YoY to ₹890 cr), and interest costs (up 16% YoY to ₹1,519 cr).

  • Net generation for Q1 FY27 declined marginally by 5% YoY to 12.9 billion units, primarily due to lower hydro (down 26% YoY) and thermal (down 6% YoY) generation.

  • 69 MU of wind plus solar generation was curtailed in Q1 FY27, impacting solar PLF which remained at 21%.

Key financials

  1. Revenue ₹5,437 Cr 0%YoY
  2. EBITDA ₹3,103 Cr +2%YoY
  3. PAT ₹533 Cr
  4. PAT Attributable to Shareholders ₹471 Cr
  5. Depreciation ₹890 Cr +20%YoY
  6. Interest Costs ₹1,519 Cr +16%YoY
  7. Net Debt to TTM EBITDA 4.95×
  8. Installed Capacity 14.6 GW
  9. Net Generation 12.9 billion units -5%YoY
  10. Thermal Generation 8 billion units -6%YoY
  11. Gross Debt ₹74,000 Cr

What they filed

Q1 FY27: revenue up 20.2%, net profit up 16.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue967 977 946 916 780 −19%695 −29%639 −32%1,101 +20%
EBITDA250 305 277 303 259 +4%244 −20%209 −25%296 −2%
Net profit286 217 464 162 190 −34%65 −70%442 −5%188 +16%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹440 Cr

as of 2026-06-30 quantified

Inflow this quarter

₹440 Cr

Execution

plant is fully ready to start producing and meet the schedules, supplies as per the schedule, which has been agreed by the buyer.

The company has received its first large external order for the 5 GWh battery plant, which is fully ready for production and meeting schedules.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹20,000 Cr equity portion funded by capital raise and operating cash flow, with balance from incremental debt
    Together, this gives us an ample liquidity cushion of about 12,880 crore in cash balances, comfortably funding the equity portion of our estimated ₹20,000 crore FY27 capex and 2030 growth plans, with headroom for further growth.
  • Debt Gross ₹74,000 Cr · Net ₹55,000 Cr · 5.0× EBITDA
    • New borrowing Preferential allotment to promoters, of which ₹1,125 crores received, balance by June 2027. ₹3,000 Cr
    • New borrowing QIP anchored by marquee global and domestic institutional investors. ₹4,000 Cr
    Net Debt to TTM EBITDA ratio stands at roughly 4.95x, comfortably within our financial guardrails and, as noted earlier, a substantial improvement from the 5.2 times we reported in FY26.
  • M&A Maruti Clean Coal & Power Limited Acquisition · Signed · Consideration ₹[object Object] (undisclosed)

    Opportunity to improve existing assets, proximity to coal, merchant market upside for 60 MW, and potential for capacity doubling, making it value-accretive.

    Operates a 300 MW thermal plant with a long-term PPA of 195 MW (net) and 5% power at variable cost to Chhattisgarh discom, balance ~64 MW for merchant market.

    Accordingly, we signed a definitive agreement to acquire Maruti Clean Coal & Power Limited, which operates a 300 MW thermal plant in Chhattisgarh. The plant has a long-term PPA of 195 MW (net) with Rajasthan discoms, with a residual PPA life of 14 years. In addition, the plant provides 5% power at variable cost to the Chhattisgarh discom, while the balance ~64 MW capacity is sold in the merchant market.
  • M&A JSW Steel Divestment · Closed · Consideration ₹[object Object] (cash)

    Monetizing stake to fund growth plans and capital raise.

    Partial stake sale of 2.5 crore shares out of 7 crore shareholding, worth ₹3,150 crores.

    Second, a partial stake sale in JSW Steel, monetizing 2.5 crore shares out of our 7 crore share holding, worth ₹3,150 crore.
  • M&A Toshiba JSW Power Systems JV Stake increase · Closed · Consideration ₹[object Object] (undisclosed)

    De-risking equipment supply chain and building thermal capacity at lower capital costs.

    Increased stake to 10.7% from 2.4%.

    On the thermal side, we increased our stake in Toshiba JSW Power Systems JV to 10.7% from 2.4% earlier - this is aimed at de-risking our equipment supply chain and building thermal capacity at one of the lowest capital costs in the industry.
  • M&A GE's boiler business (Durgapur facility) Acquisition · Pending regulatory · Consideration ₹[object Object] (undisclosed)

    De-risking thermal growth ambitions and gaining full control over build-out.

    Acquisition expected to be completed this quarter, with nameplate capacity of 1.1 GW (can be debottlenecked to 1.6 GW).

    Combined with our ongoing acquisition of GE's boiler business, which we look to complete this quarter, we have now fully de-risked our thermal growth ambitions - giving us full control over our build-out, for both our current projects and future opportunities.
  • Liquidity Cash ₹12,880 Cr Ample liquidity cushion to comfortably fund equity portion of FY27 capex and 2030 growth plans, with headroom for further growth.
    Together, this gives us an ample liquidity cushion of about 12,880 crore in cash balances, comfortably funding the equity portion of our estimated ₹20,000 crore FY27 capex and 2030 growth plans, with headroom for further growth.

Guidance & targets

Capacity

  • Annual Capacity Addition Capacity · FY27 · High confidence 3 GW
    We remain firmly on track to deliver our FY27 annual target of 3 GW capacity addition

    — Sharad Mahendra

  • Mahanadi 4th Unit Commissioning Capacity · FY28 · High confidence 600 MW
    So we have placed the orders, and the material is under dispatch and all. So we will be, as we have said, in FY28, the commissioning of the next fourth unit.

    — Sharad Mahendra

  • Chitradurga Wind Facility Commissioning Capacity · by FY27 · High confidence —
    The second facility, at Chitradurga, is expected to be commissioned by FY27, with work currently at an advanced stage.

    — Sharad Mahendra

  • Annual Capacity Addition Capacity · next year (FY28) · Medium confidence 3 GW or similar
    And next year also, we plan to add about 3 GW or similar? Yes, it will be in the same range. It will be in this range only.

    — Sharad Mahendra

Capex

  • Annual Capex Capex · FY27 · High confidence ₹20,000 crore
    We remain firmly on track to deliver our FY27 annual target of 3 GW capacity addition and *20,000 crore capex

    — Sharad Mahendra

Debt

  • Net Leverage Debt · by 2030 · High confidence Below 5x
    By year 2030, we are committed to have our net leverage below 5 times.

    — Sharad Mahendra

What to watch in Q2 FY27

FY28 Capacity Addition and Connectivity Update

Very soon / Next quarter
Current Management will provide an update very soon.
Target Specific GW target and connectivity status for FY28.

Why it matters

Crucial for assessing the company's medium-term growth trajectory beyond FY27.

And for FY28, we will definitely come back to you... Very soon, we will come back for FY28 also.

Risks & concerns

  • Higher depreciation and interest costs impacting profitability

    medium

    PAT declined due to increased depreciation (20% YoY) and interest costs (16% YoY) from new asset commissioning, a common industry trend for new projects.

    Management acknowledged

  • Curtailment of RE generation

    low

    69 MU of wind plus solar generation was curtailed in Q1 FY27, impacting solar PLF, but fixed costs are recovered for these deemed plant availabilities.

    Management acknowledged

Q&A highlights

8 direct
Thermal plant PLF during low demand Direct
our backdowns or reductions have been the minimum because of the merit order... minimum load that we have seen in the case of Utkal has not gone below 60%... operating at almost more than 85% PLF and more than 90% availability.

Clarifies that JSW Energy's thermal plants maintain high PLF and recover fixed costs even during low demand periods, mitigating concerns about technical minimums.

Asked by Sumit Kishore

Battery assembly facility external order and profitability Direct
margin in dollar terms, it's in the range of about $2.75 to $3. If you look at the overall capacity running, it will be about $15 million in a year. So that's how we are saying you can get about close to 150-odd crores of EBITDA from this project.

Quantifies the expected EBITDA contribution (₹150 crores) from the battery assembly facility's external order and confirms readiness for production.

Asked by Sumit Kishore

RE capacity connectivity and curtailment Direct
out of this 1.1 GW, 300 MW right now is under TGNA, which is facing curtailment... 400 MW O2 Power project in Rajasthan... also under TGNA... balance 1.9 GW... more than 530 MW... is our group captive, which is a mix of off grid also... totally insulated.

Provides detailed breakdown of commissioned and pipeline RE capacity, addressing connectivity status, curtailment issues, and the significant portion of off-grid/insulated capacity.

Asked by Apoorva Bahadur

Pumped Storage Projects (PSP) status and capex Direct
2 PPA, which we have signed. One is the Bhavali project in Maharashtra with MSEDCL of 1,500 MW. And another is in UP, Kandhaura, of 1,680 MW, out of which 1,500 MW PPA has been signed with the state of UP... this offers very, very high returns... significantly high-teen IRRs.

Provides detailed updates on the readiness and PPA status of Bhavali and Kandhaura PSPs, indicating high-teen IRRs and readiness for execution.

Asked by Satyadeep Jain

Mahanadi thermal expansion capex Direct
Mahanadi, when we will be completing, I can say definitely that we will be at least 25% to 30% lower while doubling the capacity from 1,800 MW to 3,600 MW.

Management projects a 25-30% lower capex for doubling Mahanadi's capacity from 1,800 MW to 3,600 MW compared to greenfield projects.

Asked by Satyadeep Jain

Non-participation in SECI tender Direct
the condition was that there has to be forest clearance, stage 1, in place... So we were not having any other site ready with forest clearance stage 1 clearance. So we had decided not to participate... we are now ready with another site of almost close to about 9 GWh.

Explains non-participation due to lack of Stage 1 forest clearance for eligible sites, while also revealing readiness with a new 9 GWh site for future tenders.

Asked by Nikhil Nigania

Thermal PLF decline Direct
Utkal, there was a shutdown which was planned... So that was the reason of lower PLF in Utkal... we had taken the shutdown to improve the reliability and the performance because we were foreseeing the demand... Ratnagiri... it was again a plant shutdown to ensure the annual availability we have to ensure we achieve of 80% so that's my fixed cost.

Explains the lower thermal PLF in Q1 was due to planned shutdowns for maintenance and reliability improvements at Utkal and Ratnagiri, not solar impact, with recovery seen in July.

Asked by Dhruv Muchhal

PBT/PAT profitability outlook Direct
Initially, the interest cost charged to the P&L is relatively higher because there is a moratorium during the construction period. Once commissioning starts, the interest expense recognized in the P&L remains higher in the initial years... as the asset stabilizes over a period of about 4-5 years, we see a better translation of EBITDA into PBT and PAT.

Explains that current PBT/PAT suppression is due to higher depreciation and interest costs from recently commissioned RE assets, with profitability expected to improve as assets stabilize over 4-5 years.

Asked by Atul Tiwari

2 min read 6 chapters

Detailed narrative

Robust Capacity Expansion and FY27 Targets

JSW Energy achieved a landmark Q1 FY27 by adding 873 MW of capacity, contributing to a cumulative 1.1 GW since April 2026. This puts the company firmly on track to meet its ambitious FY27 target of 3 GW capacity addition and ₹20,000 crore capex. The early commissioning of the 150 MW Tidong Hydro project, originally slated for October 2026, further underscores execution efficiency, contributing ₹20-22 crores to Q1 EBITDA.

Strengthened Balance Sheet and Liquidity

The company successfully executed a ₹10,150 crore capital raise, the largest growth capital raise in the Indian power sector. This included a ₹3,000 crore preferential allotment to promoters (₹1,125 crore received), a ₹3,150 crore partial stake sale in JSW Steel, and a ₹4,000 crore QIP. These initiatives resulted in an ample liquidity cushion of ₹12,880 crore in cash balances and an improved Net Debt to TTM EBITDA ratio of 4.95x, down from 5.2x in FY26, with a commitment to stay below 5x by 2030.

Strategic Acquisitions and Vertical Integration

JSW Energy signed an agreement to acquire Maruti Clean Coal & Power Limited, a 300 MW thermal plant with a 195 MW net PPA, citing value-accretive opportunities for asset improvement and potential capacity doubling. The company also increased its stake in Toshiba JSW Power Systems JV to 10.7% and is in the process of acquiring GE’s boiler business, expected to close this quarter. These moves aim to de-risk the equipment supply chain and reduce capital costs for thermal expansion.

Operational Performance and Curtailment Impact

Q1 FY27 saw a marginal 5% YoY decline in net generation to 12.9 billion units, primarily due to a 26% YoY drop in hydro generation and a 6% YoY decline in thermal generation. The thermal PLF was impacted by planned shutdowns for maintenance at Utkal and Ratnagiri, though fixed costs were recovered. Solar PLF remained at 21%, partly due to 69 MU of curtailment on 400 MW capacity, with expectations for improvement in H2 post-monsoon.

Pumped Storage Projects (PSP) and Future Growth

The company provided updates on its PSP pipeline, with PPAs signed for Bhavali (1,500 MW in Maharashtra) and Kandhaura (1,500 MW in UP). Bhavali is significantly advanced with clearances and orders placed, while Kandhaura is expected to be ready for execution by Q4 FY27. Management indicated a capex benchmark of around ₹5 crores per MW for PSPs and projected high-teen IRRs for these projects. Discussions are also underway for a similar 3 GW capacity addition in FY28.

Battery Energy Storage System (BESS) and Innovation

The 5 GWh battery plant, commissioned in Q4 FY26, received its first large external order of ₹440 crore, with management confirming the plant's readiness for production. The BESS assembly business is expected to yield an EBITDA margin of $2.75-$3 per KWh, translating to approximately ₹150 crores annually. JSW Energy is also exploring backward integration into cell manufacturing in India to further enhance value addition and margins in the energy storage segment.

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