JSW Energy (533148) Q3 25/26 earnings summary

Executive summary

• Power sales and net generation rose 65% year-on-year to 11.1 billion units, driven by major capacity additions and strong performance in both thermal and renewable segments, with installed capacity reaching 13.3 GW, up 64% year-on-year.

• EBITDA surged 98% year-on-year to ₹2,202 crore, and PAT increased 150% to ₹420 crore, reflecting contributions from organic growth and acquisitions.

• Over 95% of plant capacity is now tied up in long-term PPAs, reducing merchant market exposure and ensuring stable cash flows.

• Major acquisitions, including O2 Power and KSK Mahanadi, have been fully integrated and are contributing significantly to earnings.

• Commissioned India's largest green hydrogen plant (3,800 tons/year) at Vijayanagar, with significant progress on new project signings.

Financial highlights

• Q3 FY26 consolidated revenue increased 61% year-on-year to ₹4,255 crore, driven by capacity and generation growth.

• EBITDA margin improved to 52% from 42% year-on-year.

• Cash PAT for Q3 FY26 was ₹570 crore, up 12% year-on-year; 9M FY26 Cash PAT at ₹3,660 crore, up 38% year-on-year.

• Net debt at quarter-end was ₹63,771 crore, with Net Debt to Equity at 2.2x and Net Debt to Proforma Steady-state EBITDA at 4.9x.

• Receivables DSO reduced to 73 days from 96 days year-on-year; cash and equivalents at ₹7,159 crore.

Outlook and guidance

• Reaffirmed commitment to 2030 goals: 30 GW generation capacity and 40 GWh storage, with a 20% CAGR in installed capacity.

• All under-construction projects are tied up under long-term PPAs, ensuring earnings visibility.

• CapEx for Salboni phase I (2x800 MW) estimated at ₹16,000 crore, with commissioning within PPA timelines.

• Organic RE capacity addition guidance of 1.5 GW for H2 FY26 is on track, with grid connectivity secured for the next 1-2 years.

• Expect moderation in sector-wide renewable bidding due to connectivity and PPA signing challenges, but 30 GW by 2030 remains on track.