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    JSW Energy

    JSWENERGY
    Power·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

    5

    • 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

    3

    • 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

    Single quarter

    11 metrics
    1. 01Revenue₹5,437 Cr0%YoY
    2. 02EBITDA₹3,103 Cr+2%YoY
    3. 03PAT₹533 Cr
    4. 04PAT Attributable to Shareholders₹471 Cr
    5. 05Depreciation₹890 Cr+20%YoY

    Order Book

    high confidence

    Total Value

    ₹ 440 crores

    as of 2026-06-30

    quantified

    Inflow this qtr

    ₹ 440 crores

    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

    7
    high confidence
    CategoryHeadline
    Capex

    ₹20,000 crores

    equity portion funded by capital raise and operating cash flow, with balance from incremental debt

    Debt

    Gross ₹74,000 crores · Net ₹55,000 crores · 5.0x EBITDA

    M&A

    Maruti Clean Coal & Power Limited

    acquisition · signed · Consideration ₹NaN (undisclosed)

    M&A

    JSW Steel

    divestment · closed · Consideration ₹NaN (cash)

    M&A

    Toshiba JSW Power Systems JV

    Other · closed · Consideration ₹NaN (undisclosed)

    Guidance & targets

    6
    CategoryTargetPriority
    Capacity
    Annual Capacity Addition
    3 GW
    		High
    Capacity
    Mahanadi 4th Unit Commissioning
    600 MW
    		High
    Capacity
    Chitradurga Wind Facility Commissioning
    —
    		High
    Capacity
    Annual Capacity Addition
    3 GW or similar
    		Medium
    Capex
    Annual Capex
    ₹20,000 crore
    		High
    Debt
    Net Leverage
    Below 5x
    		High

    What to watch in Q2 FY27

    5

    FY28 Capacity Addition and Connectivity Update

    Very soon / Next quarter
    CurrentManagement will provide an update very soon.
    TargetSpecific 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

    2
    RiskSeverity

    Higher depreciation and interest costs impacting profitability

    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

    medium

    Curtailment of RE generation

    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

    low

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.