JSW Energy shares gain 4% post Q1 results; should you buy, sell or hold?

Shares of JSW Energy were ruling higher on the bourses on Friday, August 1, 2025. The company’s shares climbed 3.65 per cent to hit an intra-day high of ₹533.90 per share on the NSE. The northward movement in JSW Energy's share price came on the back of the company's announcement of its financial results for the first quarter of the financial year 2025-26 (Q1FY26).

 

At around 11:21 AM on Friday, JSW Energy shares were quoted exchanging hands at ₹521.75 per share, up 1.30 per cent from its previous close of ₹515.05 per share on the NSE. A combined total of nearly 8.86 million equity shares of the company, estimated to be valued at ₹463 crore, have exchanged hands on the NSE and BSE.

 

JSW Energy Q1FY26 results

During the first quarter of FY26, JSW Energy reported a 42 per cent year-on-year (Y-o-Y) surge in its consolidated profit after tax (PAT) at ₹743 crore, against ₹522 crore reported in Q1FY25. The company's total consolidated revenue rose 78 per cent Y-o-Y to ₹5,411 crore in Q1FY26, from ₹3,043 crore reported in Q1FY25.

 

The company's earnings before interest, tax, depreciation and amortization (Ebitda) came in at ₹3,057 crore, up 93 per cent Y-o-Y from ₹1,581 crore reported in Q1FY25. 

 

The strong beat was driven by higher-than-estimated contributions from recently acquired assets—KSK Mahanadi (1.8 GW) and O2 Power (1.3 GW)—alongside higher generation from the fully contracted Vijayanagar coal plant.

Should you buy, sell or hold JSW Energy shares?

Motilal Oswal Financial Services:  Buy

Analysts at Motilal Oswal Financial Services have reiterated their Buy rating on the stock following a stronger-than-expected Q1 FY26 performance.

 

Analysts highlighted that the company, in Q1FY26, commissioned 1.9 GW of capacity, which includes 1.7 GW from O2 Power and 200 MW under its renewable energy platform, JSW NEO. It has reaffirmed its FY26 capacity addition target of 3 to 4 GW, excluding the 1.3 GW from O2 Power. Capital expenditure for the quarter was ₹2,400 crore, and the company has maintained its full-year FY26 capex guidance at ₹15,000 to ₹18,000 crore. Additionally, the 240 MW Kutehr Hydro project is expected to be commissioned within the next few days.

 

"JSW Energy remains on track to reach 30 GW of generation and 40 GWh of storage capacity by FY30, targeting a 2.7x–3x Ebitda increase over pro forma FY25 levels," wrote the analysts in a research report.

JM Financial: Buy 

JM Financial has also maintained a Buy rating on the stock, pointing to a healthy Q1 FY26 performance. Analysts see the company’s strategy shift from exposure to volatile merchant tariffs to a model focused on stable cash flows as a positive catalyst.

 

"Company is confident of achieving 30 GW + 40 GWh storage by FY30 with change in strategy from a volatile merchant tariff to one focused on stable cash flows (87 per cent generation from LT PPA in Q1)," highlighted the analyst in its report.

 

However, analysts expressed caution over the company’s repeated forays into non-core areas. These include its earlier, now-abandoned plans to manufacture solar PV modules, its current engagement in wind turbine blade production, and its entry into battery assembly. Furthermore, the ambitious aggregation of large and complex infrastructure projects over the next five years remains a concern. 

 

Despite these risks, analysts project strong financial growth between FY25 and FY30, expecting a compound annual growth rate of 26 per cent in revenue, 35 per cent in Ebitda, and 27 per cent in profit after tax.

 

JM Financial has maintained its SOTP-based target price of ₹571, based on FY27 earnings. "At the current market price of ₹515, this implies a valuation of 13 times EV/Ebitda and 2.6 times price-to-book on FY27 estimates."

About JSW Energy

A part of JSW Group, JSW Energy is a private sector power producer in India. The company has established its presence across the value chains of the power sector with diversified assets in power generation and transmission. JSW Energy began commercial operations in 2000, with the commissioning of its first 2x130 MW thermal power plants at Vijayanagar, Karnataka. Since then, the company has steadily enhanced its power generation capacity from 260 MW to 10 GW ahead of its FY2025 target, ensuring diversity in geographic presence, fuel sources and power offtake arrangements. As of August 1, the power generation company has a market capitalisation of ₹90,849 crore on the NSE. The company is a constituent of the Nifty Next 50 index on the NSE.