Synopsis:
The power company targets 30.5 GW of generation, with strong revenue growth but slight profit decline. Expansion focuses on renewables and long-term PPAs, aiming for 20% CAGR, disciplined capex, and robust clean energy leadership.
India’s power generation sector has reached a milestone with a total installed capacity of around 476 GW as of mid-2025. Renewable sources like solar (111 GW) and wind (51 GW) now contribute nearly half of this capacity. In early 2025 alone, India added over 13 GW of capacity, with renewables accounting for nearly 79% of new additions, highlighting a strong shift to clean energy.
With a market capitalization of Rs 93,156.06 crore, the shares of JSW Energy Ltd closed at Rs 533.00 per share, increasing around 0.92 percent as compared to the previous closing price of Rs 528.15 apiece.
Brokerage Recommendations
Axis Direct, one of the well-known brokerages in India, gave a ‘Buy’ recommendation on this power stock with a target price of Rs 705 apiece, indicating a potential upside of 32 percent from Thursday’s closing price of Rs 533.00 per share.
The company’s installed capacity rose by 443 MW in Q2FY26, up 3% QoQ and 71% YoY, reaching 13.2 GW, driven by hydro, wind, and solar additions. Net generation increased 52% YoY to 14.9 BUs. With 12.5 GW under construction and tied to long-term PPAs, capacity is set to exceed 15 GW by FY26.
Additionally, states are issuing bids for both thermal and renewable projects, with 11.6 GW of thermal capacity under consideration in H1FY26. Fresh PPAs encourage investment, while renewable growth is supported by phasing out ISTS waivers and simplified intra-state PPAs, easing RPO compliance. Key activity is seen in Bihar, MP, West Bengal, Assam, UP, and Maharashtra.
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Q2FY26 Highlights & Future Guidance
The company reported strong revenue growth of 60% YoY, rising from Rs 3,238 crore to Rs 5,177 crore in Q2FY26. However, net profit declined 6% to Rs 824 crore, indicating higher costs despite robust top-line expansion, reflecting mixed operational performance for the quarter.
JSW Energy is targeting monumental growth in its power generation, aiming to triple its capacity to 30 GW by 2030. The 30.5 GW “locked-in” mix will be spread across thermal, wind, solar, hydro, and hybrid sources, with renewables forming an increasing share. Currently, 13,211 MW is operational, with another 12,540 MW under construction.
The roadmap shows a robust expansion trajectory, with under-construction projects heavily weighted towards solar and hybrid installations. With an expected CAGR of 20% till 2030, JSW is betting big on clean energy, supported by signed PPAs, upcoming projects in the pipeline, and its commitment to meeting the growing demand for sustainable power solutions.
Written by Abhishek Singh
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