JSW Energy (533148) Q1 25/26 earnings summary

Executive summary

• Net generation rose 71% year-on-year to 13.5 billion units, driven by new wind capacity, acquisitions like O2 Power and Mahanadi Thermal Plant, and higher thermal output.

• Achieved record quarterly EBITDA of ₹3,057 crore (up 93% YoY) and PAT of ₹743 crore (up 42% YoY), with cash PAT up 65% YoY to ₹1,579 crore.

• Installed capacity increased to 12.8 GW, a 70% YoY rise, with 1.9 GW added in Q1 FY26, including O2 Power and Mahanadi acquisitions.

• Strategic focus on scaling clean energy, stable earnings via PPA-tied portfolio, and disciplined capital allocation, with 84% of thermal capacity tied up.

• ESG performance recognized with sector-leading ratings and inclusion in FTSE4Good and MSCI 'A' ESG rating.

Financial highlights

• Revenue for the quarter increased 78% YoY to ₹5,411 crore, with EBITDA margin at 54–56% and PAT margin at 14–15.5%.

• Net debt at quarter-end stood at ₹59,313 crore, up due to acquisitions and capex; net debt-to-EBITDA at 4.7x; net debt-to-equity at 2.1x.

• Receivables at ₹3,700 crore, with days sales outstanding improving to 58 days; cash and equivalents at ₹6,113 crore.

• Weighted average cost of debt declined to 8.64–8.87%.

• Cash returns on net worth maintained at 19–20%.

Outlook and guidance

• Targeting 3–4 GW of capacity addition in FY2026, with a long-term goal of 30 GW installed capacity and 40 GWh storage by 2030.

• All under-construction 13 GW projects are fully tied up under long-term PPAs, ensuring future earnings stability.

• Capex guidance for FY2026 remains ₹15,000–18,000 crore; cumulative capex of ₹1,30,000 crore planned by FY2030.

• Green hydrogen plant and two wind blade manufacturing plants to be commissioned in the current quarter; trial runs for green hydrogen underway.

• Actively pursuing further PPA tie-ups to enhance cash flow visibility and reduce merchant exposure.