💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 55% YoY to over INR 5,300 Cr in Q2 FY26, driven by a 52% increase in net generation. Thermal generation grew 62% YoY (7.8 BUs) due to Mahanadi and Utkal Unit-II, while Renewable Energy (RE) generation grew 42% YoY (7.1 BUs) following organic wind additions and O2 Power acquisition.

Geographic Revenue Split

Not disclosed in available documents; however, operations are spread across Indian states including Andhra Pradesh, Karnataka, Haryana, Himachal Pradesh, Maharashtra, Madhya Pradesh, Punjab, Uttar Pradesh, Rajasthan, and Telangana.

Profitability Margins

Profit After Tax (PAT) for Q2 FY26 was INR 705 Cr, down 17% YoY due to higher interest and depreciation from new asset capitalization. H1 FY26 PAT grew 5% YoY to ~INR 1,450 Cr. Cash profit for Q2 FY26 grew 27% YoY to over INR 1,500 Cr, reflecting strong underlying cash generation despite accounting depreciation.

EBITDA Margin

EBITDA for Q2 FY26 grew 67% YoY to INR 3,200 Cr. For H1 FY26, EBITDA exceeded INR 6,200 Cr, already surpassing the total EBITDA generated in the entire previous fiscal year.

Capital Expenditure

Major recent capex includes the acquisition of KSK Mahanadi Power for INR 16,084 Cr and Hetero Group wind SPVs for ~INR 630 Cr. The company is raising up to INR 10,000 Cr to fund its transition toward a 30 GW cumulative capacity target.

Credit Rating & Borrowing

Maintains [ICRA]AA (Stable) and [ICRA]A1+ ratings. Debt service coverage ratio (DSCR) is expected to remain comfortable above 1.4x over the medium term, supported by long-term PPAs and competitive financing costs.

⚙️ Operational Drivers

Raw Materials

Domestic coal (primary fuel for thermal), water (for hydro), and wind/solar energy. Fuel costs are a pass-through in the majority of agreements, mitigating price volatility.

Import Sources

Primarily domestic sourcing for coal; specific states include Rajasthan (Barmer) and Chhattisgarh (Raigarh/Mahanadi).

Key Suppliers

Toshiba JSW Power Systems Private Limited (TJPS) is a key supplier for specialized Turbine Generator (TG) equipment and services under a contract valued up to INR 2,500 Cr.

Capacity Expansion

Current operational capacity is 13.2 GW as of September 2025 (up from 7.7 GW in September 2024). Planned expansion to >15 GW by end of FY26 and a long-term target of 30 GW by 2030.

Raw Material Costs

Fuel costs for thermal plants are being optimized; the removal of the INR 400/tonne compensation cess on coal is expected to lower generation economics for domestic coal-based plants.

Manufacturing Efficiency

Net generation increased 52% YoY to 14.9 BUs in Q2 FY26. RE share in the operating portfolio increased to ~57% from 46% in March 2025.

Logistics & Distribution

Presence in power transmission through Jaigad PowerTransco Limited (74% ownership) supports distribution infrastructure.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Transitioning from pure-play generation to an energy products and services company. Strategy involves aggressive M&A (e.g., KSK Mahanadi, O2 Power), organic RE capacity additions, and a target of 30 GW capacity by 2030. Growth is supported by a INR 10,000 Cr fundraise and preferential issues to promoters.

Products & Services

Thermal power, Hydro power, Wind energy, Solar energy, Power Transmission, and Power Trading.

Brand Portfolio

JSW Energy, JSW Neo Energy, JSW Hydro Energy.

New Products/Services

Expansion into energy products and services throughout the power sector value chain; new RE assets (Wind/Solar) are expected to drive the majority of future capacity growth.

Market Expansion

Expanding footprint across India through acquisitions of distressed assets (KSK Mahanadi) and renewable platforms (O2 Power).

Market Share & Ranking

One of India's leading private sector power producers with a 13.2 GW diversified portfolio.

Strategic Alliances

Joint venture with Toshiba (TJPS) for turbine equipment; partnerships with SECI, NTPC, and GUVNL for long-term power offtake.

🌍 External Factors

Industry Trends

The industry is shifting toward 'Energy Sustainability' and 'Energy Security.' JSWEL is positioning itself by increasing RE share to 57% and targeting 30 GW to capitalize on India's growing power demand and decarbonization goals.

Competitive Landscape

Competes with other large private and public power producers; maintains edge through aggressive inorganic growth and low cost of financing (ICRA AA rating).

Competitive Moat

Durable advantages include being part of the resourceful JSW Group, high revenue visibility (92% long-term PPAs), and a diversified generation mix (Thermal, Hydro, RE) which balances base-load and green energy requirements.

Macro Economic Sensitivity

Sensitive to GST policies; recent rationalization and removal of coal cess improve generation economics. RE capital costs are highly sensitive to GST rates on equipment.

Consumer Behavior

Increasing demand for green energy from industrial consumers and DISCOMs driven by Renewable Consumption Obligations (RCO).

Geopolitical Risks

Exposure to global supply chains for RE components (solar cells/wind turbines) and specialized thermal equipment.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Electricity Act, Renewable Consumption Obligation (RCO) framework, and availability-linked tariff regulations set by CERC/SERCs.

Environmental Compliance

Focus on RE expansion (57% of portfolio) to meet ESG goals; thermal projects are exposed to local community and social risks, mitigated by site-specific development programs.

Taxation Policy Impact

Effective tax rate not specified, but the company benefits from GST rationalization on RE and the removal of the INR 400/tonne coal compensation cess.

⚠️ Risk Analysis

Key Uncertainties

Short-term tariff moderation and potential delays in commissioning under-construction RE projects could impact immediate revenue growth by 5-10%.

Geographic Concentration Risk

Operations are diversified across multiple Indian states, reducing single-region risk.

Third Party Dependencies

High dependency on state DISCOMs for offtake; mitigated by 92% PPA coverage and inclusion of strong central counterparties like SECI.

Technology Obsolescence Risk

Transitioning to RE and energy services to mitigate the long-term risk of thermal asset obsolescence.

Credit & Counterparty Risk

Exposure to weak state DISCOMs (e.g., Telangana, Rajasthan) is balanced by state government guarantees and contracts with JSW Steel and central agencies.