JSW Energy Ltd's material step-down subsidiary JSW Hydro Energy Ltd has secured a significant legal victory against the Central Electricity Regulatory Commission. According to reports from CNBC TV18, the company's appeal to the Appellate Tribunal for Electricity has resulted in the setting aside of a Central Electricity Regulatory Commission order dated March 17, 2022, which had disallowed JSW Hydro Energy's claim for notional interest during construction on equity exceeding 30% infused during construction. The tribunal's order dated September 18, 2026 allowed the interest during construction claim and set aside the CERC's previous decision. As per the latest disclosure, the Appellate Tribunal for Electricity (APTEL) has set aside the earlier order of the Central Electricity Regulatory Commission (CERC) dated 17 March 2022.
The legal dispute relates to the truing-up of tariff for the 2014-19 period and determination of tariff for the 2019-24 period. As reported by CNBC TV18, the tribunal further held that the carrying cost on the claim shall be reckoned from the date of filing of the true-up petition until its eventual adjustment. The matter has been remanded to the Central Electricity Regulatory Commission to undertake a prudence check of the data submitted in relation to additional interest during construction. According to the latest disclosure, APTEL has allowed the IDC Claim of JSWHEL and held that carrying cost on the claim shall be reckoned from the date of filing of the true-up petition until its eventual adjustment.
Despite the legal victory, JSW Energy Ltd reported mixed financial results for the quarter ended June. According to CNBC TV18, the company posted a 36.6% year-on-year decline in reported net profit to ₹471 crore compared with ₹743.1 crore in the corresponding period last year. However, revenue from operations rose 1.2% to ₹5,207.1 crore, while EBITDA increased 3% to ₹2,873.2 crore. The EBITDA margin improved to 55.18% from 54.22% a year earlier.
Electricity generation during the quarter stood at 12.9 billion units (BU), down 5% year-on-year, although it improved 10% sequentially. As reported by CNBC TV18, renewable generation continued to remain the standout performer, rising 11% to 3.4 BU on the back of higher solar and wind output, while thermal generation declined 6% to 8 BU. Despite softer generation, the company noted that India witnessed robust electricity demand during the quarter, with nationwide consumption rising 8.5% year-on-year to 483 BU amid an extended heatwave and delayed monsoon.
Shares of JSW Energy Ltd ended at ₹517.80, up by ₹6.80, or 1.33% on the BSE following the legal victory announcement. According to CNBC TV18, the positive market response reflects investor confidence in the company's legal success and potential financial benefits from the overturned CERC order. The disclosure has been made under Regulation 30 of the SEBI Listing Regulations.
