JSW Energy PAT falls 36% despite record renewable capacity addition

JSW Energy Limited reported lower earnings for the quarter ended June 30, 2026, as higher depreciation and finance costs weighed on profitability despite growth in operating capacity and stable revenue. During the quarter, the company added 1,081 MW of capacity, including one of its largest-ever quarterly organic renewable additions, taking its total installed capacity to 14,535 MW.

Consolidated profit after tax (PAT) declined 36% year-on-year to Rs 532.70 crore from Rs 835.86 crore in the corresponding quarter of FY26. Net profit attributable to owners of the company fell to Rs 470.97 crore from Rs 743.12 crore a year earlier.

Financial performance

Revenue from operations remained largely unchanged at Rs 5,207.13 crore during Q1 FY27, compared to Rs 5,143.37 crore in the corresponding period last year. Total revenue stood at Rs 5,436.57 crore, marginally higher than Rs 5,411.24 crore reported in Q1 FY26.

Consolidated EBITDA increased by 2% year-on-year to Rs 3,103 crore from Rs 3,057 crore, reflecting stable operating performance across the portfolio.

The decline in profitability was primarily driven by rising depreciation and finance costs linked to the company’s ongoing capacity expansion programme. Depreciation expenses increased to Rs 890 crore during the quarter from Rs 739 crore a year earlier, following the commissioning of new assets.

Finance costs rose to Rs 1,519 crore from Rs 1,306 crore in Q1 FY26 due to higher borrowings undertaken to fund project development and acquisitions. The company’s weighted average cost of debt, including working capital borrowings, stood at 8.36%.

Cash PAT attributable to shareholders was reported at Rs 1,464 crore, down 7% year-on-year.

Capacity additions

JSW Energy added 1,081 MW of operational capacity during the quarter, significantly expanding its renewable energy portfolio.

Of the total addition, 931 MW was commissioned organically, comprising 442 MW of solar capacity, 108 MW of wind capacity and 381 MW of hybrid capacity. The company described this as one of the largest quarterly organic capacity additions in its history.

The company also completed the commissioning of the acquired 150 MW Tidong Hydro project on June 12, 2026, ahead of its original commissioning schedule of October 2026.

Following these additions, JSW Energy’s total installed capacity reached 14,535 MW. Renewable energy now accounts for 61% of the portfolio, while thermal generation capacity stands at 5,658 MW.

Capital raising

To support its growth plans and strengthen liquidity, JSW Energy completed a Qualified Institutions Placement (QIP) during the quarter.

On May 25, 2026, the company raised Rs 4,000 crore through the allotment of 7,61,90,476 equity shares at an issue price of Rs 525 per share.

In a separate transaction, the company divested 2,50,00,000 equity shares of JSW Steel Limited on May 18, 2026. The sale generated gross proceeds of Rs 3,150 crore and was undertaken as part of a strategic liquidity release initiative.

Balance sheet

As of June 30, 2026, consolidated net debt stood at Rs 61,322 crore, while consolidated net worth was Rs 36,161 crore.

The company’s net debt-to-equity ratio was 1.7x at the end of the quarter. Cash and cash equivalents remained strong at Rs 12,881 crore, providing liquidity support for its ongoing expansion programme and future investments.