JSW Energy (533148) Q1 25/26 earnings summary

Executive summary

• Achieved record EBITDA of ₹3,057 crore (up 93% YoY) and PAT of ₹743 crore (up 42% YoY) for Q1 FY26, driven by capacity additions and strategic acquisitions, with installed capacity rising to 12.8 GW, a 70% YoY increase.

• Net generation increased 71% YoY to 13.5 billion units, supported by new wind and thermal assets, including O2 Power and Mahanadi Thermal Plant.

• Strategic shift towards long-term PPAs, with 84% of thermal capacity tied up and significant renewable PPA signings, supporting stable earnings.

• Maintained strong liquidity with cash balances of ₹6,113 crore and receivables DSO of 58 days.

• ESG performance recognized with sector-leading ratings and inclusion in FTSE4Good Index.

Financial highlights

• Total revenue for Q1 FY26 increased 78% YoY to over ₹5,400 crore, with EBITDA margin at 54–56% and net profit margin at 14–15.5%.

• Cash PAT for Q1 FY26 was ₹1,579 crore, up 65% YoY; cash returns on adjusted net worth at 19%.

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

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

• Receivable days improved to 58; cash and equivalents at ₹6,113 crore.

Outlook and guidance

• Targeting 3–4 GW of capacity addition in FY26 and 30 GW installed capacity with 40 GWh storage by 2030, implying ~20% CAGR.

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

• Capex guidance for FY26 remains ₹15,000–18,000 crore; cumulative capex of ₹1,30,000 crore planned by FY2030.

• Ongoing commissioning of Kutehr hydro plant and ramp-up of acquired assets expected to drive further growth.

• Green hydrogen and energy storage projects progressing, with trial runs and new PPAs signed.