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Informist, Monday, Jul. 20, 2026

 

By Sunil Raghu

 

AHMEDABAD – JSW Energy Ltd.'s consolidated net profit for the June quarter is likely to fall sharply year-on-year, with revenue too taking a hit. The brokerages said the fall in profit would be due to a high base in the year-ago quarter, lower renewable power generation, especially wind and hydro, lower merchant power realisations, and higher finance costs and depreciation expenses.

 

JSW Energy is estimated to report a 68% on-year fall in consolidated net profit to INR 2.4 billion for the June quarter, according to the average of estimates from six brokerages. Revenues are expected to fall 7% to INR 47.84 billion. On quarter, the net profit is expected to slip 36% and revenues are likely to rise over 6%.

 

The highest net profit estimate for the June quarter is INR 3 billion from JM Financial Institutional Securities Pvt. Ltd. and the lowest is INR 1.62 billion from Axis Securities Ltd. The highest revenue estimate is INR 51 billion from Motilal Oswal Financial Services Ltd. and the lowest INR 44 billion from Prabhudas Lilladher Pvt. Ltd.

 

JSW Energy's June quarter net profit is likely to be impacted by higher depreciation and interest costs, Kotak Securities Ltd. said. Depreciation happens 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. The brokerage also said the company would find it difficult to benefit from any upside improved merchant tariffs could offer, as it has limited merchant capacity available. The brokerage attributed it to the high base of the year-ago quarter, when the company's net profit jumped 40% and revenues rose 80%.

 

Motilal Oswal expects JSW Energy's revenues to stay flat year-on-year but earnings before interest, tax, depreciation, and amortisation to fall 9% on year, as hydropower plant load factor could be impacted by the delayed monsoon. The brokerage also expects adjusted net profit to dip 67% on year to INR 2.5 billion due to a jump in interest and depreciation costs. The net profit is unlikely to benefit much from INR 31.5 billion earned during the quarter from the sale of 25 million shares JSW Energy held in JSW Steel Ltd.

 

JSW Energy's EBITDA for the June quarter is estimated at INR 25.11 billion, down nearly 18% on-year and over 3% on-quarter, according to the average of six estimates. The highest estimate for EBITDA is INR 25.50 billion from Motilal Oswal and the lowest is INR 24.53 billion from Kotak.

 

JSW Energy has a total locked-in generation capacity of over 32 GW, including 14.54 GW of operational capacity, 13 GW under construction, and a development pipeline of over 4.5 GW. The company has plans to add 3 GW of renewable energy capacity during the financial year 2026-27 (Apr-Mar), and reach 30 GW of generation capacity by 2030. It also plans to achieve 40 gigawatt-hour of energy storage capacity by 2030.

 

Out of India's total generation capacity at 520 GW, JSW Energy's operational capacity currently accounts for about 2.5%. The company had said it was targeting capital expenditure of around INR 200 billion for FY27. The capacity addition in FY27 will be a mix of solar, wind, and hybrid projects, with 35-40% in wind, and the rest in solar.

 

JSW Energy will detail its June quarter earnings Wednesday. Monday, shares of JSW Energy closed at INR 567.70 on the National Stock Exchange, up 4.9%. The stock has fallen nearly 2% since May 11, when the company announced its March quarter earnings after market hours.  All six research reports on JSW Energy available with Informist have a "buy" call, with an average target price of INR 635 per share. This is nearly 12% higher than Monday's close.

 

The following are the Apr-Jun earnings estimates for JSW Energy from six brokerages, in descending order by the estimate of net profit, in INR billion:

 

Brokerage	Net sales	Net profit	EBITDA
JM Financial Institutional Securities Pvt Ltd.	47.13	2.96	25.32
Prabhudas Lilladher Pvt. Ltd.	43.53	2.57	25.47
Motilal Oswal Financial Services Ltd.	51.20	2.50	25.50
Elara Securities (India) Pvt. Ltd.	49.31	2.42	24.91
Kotak Securities Ltd.	46.45	2.22	24.53
Axis Securities Ltd.	49.44	1.62	24.97
Average	47.84	2.38	25.12

 

End

 

Edited by Shubhayan Bhattacharya

 

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