JSW Energy (JSW IN) – Q4FY26 Result Update – Strong capacity expansion – BUY
Published on 12 May 2026
JSW Energy reported a strong Q4FY26 performance, with EBITDA rising 72% YoY, ~11% ahead of consensus estimates. The company added ~2.6 GW of capacity during FY26 through a mix of organic and inorganic routes, taking total operational capacity to ~13.45 GW, while maintaining a robust pipeline of ~14 GW under construction and ~32 GW of locked-in capacity. Over FY26–28E, operational capacity is expected to grow at a 19% CAGR, with EBITDA projected to deliver a 15% CAGR. JSW Energy continues to focus on renewable expansion, with renewables contributing 58% of FY26 operational capacity and expected to increase to 71% by FY28E, alongside scaling its energy storage portfolio with a ~29.6 GWh pipeline. We have Buy rating with a SOTP-based target price of INR 644 and stock offers one of the best EBITDA growth in the power sector. Net debt increased to ~INR 658 bn in FY26 due to ongoing capex, with ~INR 200 bn capex planned for FY27; however, leverage remains within the company’s guidance, with Net Debt-to-Equity at 2.1x and Operational Net Debt-to-EBITDA at 5.2x as on FY26.
