Power stock jumps 4% after reporting strong profit growth in Q1

Synopsis:
JSW Energy Ltd reported a 101.4 percent sequential jump in net profit and 78.5 percent YoY growth in revenue for Q1FY26, driven by robust power generation from both thermal and renewable sources. The company added 1.9 GW to its installed capacity and maintained strong operational metrics, boosting investor sentiment.

A power generation stock rose in early trade after reporting strong earnings for the June quarter, driven by a sharp rise in generation output across both renewable and thermal portfolios. 

JSW Energy Ltd which operates in the thermal and renewable energy space, opened at Rs. 530 compared to the previous close of Rs. 515.05, and hit an intraday high of Rs. 533.90, marking a rise of 3.66 percent. The company currently has a market capitalization of Rs. 89,363 crore.

What’s the News?

Quarter-on-Quarter, JSW Energy’s revenue from operations grew from Rs. 3,189 crore to Rs. 5,143 crore, registering a jump of 61.3 percent. Operating profit rose 131.6 percent from Rs. 1,204 crore to Rs. 2,789 crore, while profit before tax increased 181.1 percent from Rs. 361 crore to Rs. 1,015 crore. Net profit nearly doubled, rising 101.4 percent from Rs. 415 crore to Rs. 836 crore. Operating margin for the quarter stood at 54 percent.

Year-on-Year, revenue rose 78.5 percent from Rs. 2,879 crore to Rs. 5,143 crore. Operating profit advanced 96.6 percent from Rs. 1,418 crore to Rs. 2,789 crore. Profit before tax grew by 45.5 percent from Rs. 698 crore to Rs. 1,015 crore, and net profit rose 56.6 percent from Rs. 534 crore to Rs. 836 crore. The company’s EBITDA margin improved to 56 percent from 52 percent last year.

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Operational Highlights

Net generation surged 71 percent YoY to 13.5 billion units, driven by capacity additions in the renewable segment, contributions from the O2 Power and Mahanadi plant, and improved output from the Vijayanagar unit following long-term tie-ups. Renewable energy generation rose 54 percent YoY to 5.0 BUs, while thermal generation jumped 83 percent YoY to 8.5 BUs. Generation under long-term power purchase agreements increased 73 percent YoY to 11.8 BUs.

EBITDA for the quarter stood at Rs. 3,057 crore, marking a 93 percent YoY rise due to contributions from new capacities, and contributions from Mahanadi and O2 Power. Cash and cash equivalents stood at Rs. 6,113 crore. The net debt-to-equity ratio was 2.1x, while net debt to proforma steady-state EBITDA stood at 4.7x.

Total locked-in capacity has now reached around 30 GW. Installed capacity rose to 12.8 GW, with 1.9 GW added during the quarter—including 1.3 GW from the O2 Power acquisition. One unit of the 240 MW Kutehr hydro plant was synchronised with the grid, and full commissioning is expected soon. JSW Energy also signed PPAs for 605 MW during the quarter and an additional 550 MW post-quarter end, including battery energy storage solutions.

In its green hydrogen and energy storage ventures, trials are underway for a 3,800 TPA green hydrogen plant and total locked-in energy storage capacity now standing at 29.4 GWh.

On the thermal side, the Mahanadi plant generated 2.7 BUs during the quarter, contributing Rs. 867 crore to EBITDA. The Utkal Unit-2, commissioned in March 2025, ramped up operations and generated 370 MUs. The imported coal-based Vijayanagar plant was fully tied-up leading to a 124 percent YoY growth in generation to 1.3 BUs.

About the Company

JSW Energy Ltd is part of the JSW Group and operates power generation assets across Karnataka, Maharashtra, Nandyal, and Salboni. It is the group’s holding entity for its energy business. The company also holds a joint venture in mining and has an associate engaged in turbine manufacturing.

Written By Manan Gangwar 

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