JSW Energy reported a 36.62% decline in consolidated net profit to ₹471 crore in Q1 FY27, compared to ₹743 crore in the same period last year. According to the latest financial results, the company's revenue from operations grew 1.24% year-on-year to ₹5,207 crore during the quarter, compared to ₹5,143 crore in Q1 FY26. At the operational level, EBITDA increased 3% to ₹2,873 crore with EBITDA margin expanding significantly to 55.2% from 54.28% in the previous year, as reported by Business Standard. The company's revenue for Q1 FY27 came in at ₹5,207 crore, marginally higher than ₹5,143 crore recorded in the corresponding quarter of the previous year.
The company's depreciation costs surged significantly to ₹890 crore in Q1 FY27 from ₹39 crore in Q1 FY26, reflecting the commissioning of new capacities. As reported by CNBC TV18, finance costs during the quarter increased to ₹1,519 crore year-on-year due to incremental borrowings for funding ongoing capacity expansion. The weighted average cost of debt (including working capital) stands at 8.36%. Despite these challenges, the company raised ₹4,000 crore via Qualified Institutional Placement (QIP) on May 25 to accelerate growth and monetised part of its stake in JSW Steel on May 18, realising gross proceeds of ₹3,150 crore. The company also announced a ₹3,000 crore preferential allotment to promoters, of which ₹1,125 crore has already been received.
Since April 2026, JSW Energy has added 1,081 MW of operational capacity, including 442 MW Solar, 108 MW Wind, and 381 MW Hybrid during Q1 FY27. According to the latest results, the company has already achieved more than one-third of its planned capacity addition target for FY27. Among the key milestones during the quarter, the company fully commissioned the 150 MW Tidong hydro project on June 12, ahead of the original October 2026 schedule, operationalised its Halol wind blade manufacturing facility to strengthen backward integration, and signed a definitive agreement to acquire the 300 MW Maruti Thermal Plant. These fund raises, combined with the earlier preferential allotment to promoters, have further strengthened the company's balance sheet.
The company reported a 5% year-on-year decline in power sales to 12,868 million units compared to 13,500 million units in the corresponding period last year, though it improved 10% sequentially. As reported by CNBC TV18, electricity generation during the quarter stood at 12,868 million units, with renewable energy generation declining 3% to 4,800 million units primarily due to lower generation at hydro plants owing to weaker hydrology. Thermal generation decreased 6% to 8,000 million units, primarily driven by lower generation at the Mahanadi plant, while power supplied under long-term power purchase agreements (PPAs) slipped 4% year-on-year to 11,200 million units. Despite softer generation, India witnessed robust electricity demand during the quarter, with nationwide consumption rising 8.5% year-on-year to 483 billion units amid an extended heatwave and delayed monsoon.
JSW Energy is building a strong energy storage platform to benefit from India's transition to renewable power, as reported by Moneycontrol. The company is positioning itself strategically to capitalise on the country's renewable energy expansion through comprehensive energy storage solutions. This strategic initiative aligns with India's broader energy transition goals and positions JSW Energy as a key player in the evolving renewable energy infrastructure landscape. The company's focus on energy storage technology reflects its commitment to providing reliable, sustainable energy solutions while supporting the nation's renewable energy ambitions.
Following the earnings announcement, JSW Energy shares were trading at ₹557.60 on the National Stock Exchange, falling 1.52% to an intraday low. However, brokerages remained optimistic about the company's prospects despite the quarterly profit decline. Macquarie retained an 'Outperform' coverage with a target price of ₹720, marking an upside of nearly 28% from its last closing price of ₹561.7, highlighting that Q1 masks strong underlying progress with record capacity additions and improving balance sheet. Citi maintained its 'Buy' rating at target price of ₹650, around 16% upside, expecting strong performance through the rest of FY27 driven by capacity additions and improving execution visibility. The brokerages believe current operational drags are transient and that JSW Energy is well-positioned for stronger performance in the remainder of the fiscal year.
