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Informist, Wednesday, Jan. 21, 2026
 

By Sunil Raghu

AHMEDABAD – JSW Energy Ltd. is expected to report a sharp year-on-year rise in its consolidated net profit for the December quarter, supported by a steep jump in the contribution of power generated from the assets it acquired since January 2025, the hydro units commissioned in the last six months, and the addition of renewable capacity. Seasonally weaker winds during the quarter under review could weigh on electricity generation from renewable source facilities and the company's sequential earnings.

JSW Energy's consolidated net profit is likely to rise by over 69% on year to INR 2.84 billion in the December quarter, according to the average of estimates from four brokerages. The company's net sales of the company are seen at INR 47.72 billion, up nearly 96% from a year ago. On a trailing basis, net profit and revenue are expected to decline nearly 60% and 8%, respectively, reflecting seasonal weakness in wind generation.

Net profit estimates for the December quarter vary widely, reflecting differing assumptions about depreciation, interest costs, and the pace of integrating acquired assets. Elara Securities (India) Pvt. Ltd. has the highest net profit estimate at INR 5.66 billion, while Kotak Securities Ltd. has the lowest estimate at INR 0.12 billion. Depreciation is on gross asset value once the assets are capitalised and become operational. The acquisitions and projects are generally debt-funded, and as debt rises, interest costs rise. 

Revenue estimates range from INR 45.25 billion by Kotak Securities to INR 50.93 billion by Elara, driven by differences in generation volume estimates. JSW Energy's revenue and operational performance in the December quarter is expected to be supported by a sharp increase in electricity generation. Kotak Securities estimates JSW Energy produced about 11.5 billion units of electricity during the quarter, up 71% on year, boosted by contributions from the KSK Mahanadi acquisition, the Ind-Barath unit, and recently commissioned renewable assets.

JSW Energy had acquired 3,600 megawatt thermal power capacity at KSK Mahanadi Power Co. Ltd. in Chhattisgarh for nearly INR 160 billion under the Insolvency and Bankruptcy Code. Separately, its wholly-owned subsidiary JSW Neo Energy completed the acquisition of O2 Power's 4.7 gigawatt renewable energy project for nearly INR 125 billion. The electricity generated by both these projects was not part of JSW Energy's portfolio in the December quarter last year.

JSW Energy's earnings before interest, tax, depreciation, and amortisation are estimated at INR 24.20 billion for the December quarter, more than double from INR 11.15 billion in the year-ago quarter. EBITDA estimates range from INR 20.65 billion to INR 28.28 billion. Higher estimates factor in stronger generation from acquired thermal assets and improved scale benefits, while lower estimates reflect elevated fixed costs and higher depreciation.

EBITDA are expected to decline 24% sequentially.

Motilal Oswal Financial Services Ltd. expects JSW Energy's revenue and adjusted profit after tax to grow 92% and 38% on year, respectively, driven by incremental contributions from the KSK Mahanadi and O2 Power acquisitions, commissioning of Utkal Unit-2 and the 240 megawatt Kutehr hydro project, and organic renewable capacity additions of about 1.5 GW. However, the brokerage expects revenue and EBITDA to fall 9% and 28% sequentially due to seasonal factors.
 

JSW Energy has a total locked-in generation capacity of 30.5 GW, including 13.3 GW operational capacity, 12.4 GW under construction, and a development pipeline of 4.6 GW. It also has 29.4 GWh of locked-in energy storage capacity, positioning it for long-term growth in renewables and storage. With India's total generation capacity at 510 GW, JSW Energy's operational capacity currently accounts for 2.6% of the country's total.

The company will announce its December quarter results on Friday.

Wednesday, shares of JSW Energy were at INR 477.8 on the National Stock Exchange, down 0.3% from the previous close. The stock is about 12% lower since the company announced its September quarter earnings. 

Of the four research reports on JSW Energy available with Informist, all have a 'buy' call, with an average target price of INR 676 per share. This is higher than Wednesday's close by over 29%.

The following are the Oct-Dec earnings estimates for JSW Energy from four brokerages in descending order by the estimate of net profit in INR billion:

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Edited by Saji George Titus

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