Earnings Outlook
JSW Energy Q1 sales to jump on M&A, PAT seen up moderately
This story was originally published at 22:23 IST on 30 July 2025
Register to read our real-time news.Informist, Wednesday, Jul. 30, 2025
By Udita S. Jaiswal
MUMBAI – JSW Energy Ltd. is expected to report moderate growth in its consolidated net profit while net sales are expected to see the highest ever growth in 41 quarters, mainly due to the acquisition of the KSK Mahanadi power plant and O2 Power's plant.
JSW Energy is expected to report a 50% on-year growth in generation due to the commissioning of the 350-megawatt Ind-Barath project and contribution from the acquisition of the KSK Mahandi and O2 Power plants. The acquisition of O2 Power plant was completed in April and has added 1.34 gigawatts of capacity. The company had added 2.15 GW of thermal power capacity due to the acquisition of the KSK Mahanadi plant and the operationalisation of unit-2 at JSW Utkal.
JSW Energy's consolidated net profit for the June quarter is estimated at INR 6.33 billion, up 21% on year, according to the average of estimates by four brokerages. The highest estimate for net profit is INR 9.92 billion from Antique Stock Broking Ltd. and the lowest estimate is INR 4.1 billion from Kotak Institutional Equities.
The company's consolidated net sales are estimated at INR 50.85 billion, up 77% on year, according to the estimates. The highest estimate for net sales is INR 63.27 billion from Antique whereas the lowest estimate of INR 45.54 billion is from Kotak Institutional Equities.
JSW Energy is expected to produce 12.5 billion units of electricity in the June quarter, up 58% on year. The generation of thermal power at the Ratnagiri plant is up 4% on year while that of the Vijayanagar plant is up 91% on year.
Power generation and demand across India remained flat on a year-on-year basis in the June quarter, Antique said. While April showed some improvement in demand for electricity, the demand fell in both May and June. Cooler-than-usual weather due to widespread unseasonal rains in the quarter led to lower electricity demand during the summer months, Antique said.
JSW Energy's earnings before interest, tax, depreciation, and amortisation, or EBITDA, is estimated at INR 25.69 billion for the June quarter, according to the average of the estimates. The highest estimate for EBITDA is INR 31.54 billion from Antique while the lowest is INR 20.10 billion from Kotak. The company's EBITDA margin is expected to be 46.4%, down 280 basis points on year but up 860 bps on quarter, Motilal Oswal Financial Services Ltd. said. The return on equity is expected to be 11%, up 300 bps on quarter.
JSW Energy's EBITDA is expected to grow due to a full-quarter contribution from the KSK Mahanadi plant and unit 2 at JSW Utkal. This growth is further supported by the full-quarter contribution from organic wind capacity of around 478 MW commissioned in the March quarter, alongside partial contributions from O2 Power, and around 215 MW of solar and 66 MW of wind capacities commissioned in the latest quarter. JSW Energy is expected to incur a capital expenditure of INR 150 billion-INR 180 billion in 2025-26 (Apr-Mar), up sharply from the INR 80 billion of capex it incurred in FY25.
On Wednesday, shares of JSW energy closed at INR 525.60 on the National Stock Exchange, down marginally. The stock is up 3% since the company announced its March quarter earnings. JSW Energy will announce its June quarter earnings Thursday. Of the 10 brokerage reports on the stock available with Informist, nine have a ‘buy' recommendation on the stock with an average target price of INR 643 and one has a 'sell' recommendation.
Following are the Apr-Jun earnings estimates for JSW Energy, in INR million, based on reports from four broking firms in descending order of net profit:
Brokerage | Net sales | Net profit | EBITDA |
Antique Stock Broking Ltd. | 63,273.00 | 9,924.00 | 31,541.00 |
Motilal Oswal Financial Services Ltd. | 48,500.00 | 5,700.00 | 22,500.00 |
JM Financial Institutional Securities Pvt Ltd. | 46,121.00 | 5,617.00 | 28,614.00 |
Kotak Institutional Equities | 45,544.00 | 4,103.00 | 20,104.00 |
Average | 50,859.50 | 6,336.00 | 25,689.75 |
End
Edited by Tanima Banerjee
For users of real-time market wire data terminals, Informsit news is available exclusively on the NSE Cogencis Workstation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services LTD. by NSE Data & Analytics ltd, a 100% subsidiary of the National Stock Exchange of India LTD. As a part of the transaction, the news department of Cogenics has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
