JSW Energy Shares Fall 9% Despite 237% YoY Jump in Net Profit; Here’s Why

Synopsis:- Shares fell 9.4% as markets reacted to earnings driven largely by a ₹751 crore deferred tax write-back rather than core performance. Despite strong operational metrics like 65% higher power sales, 11.1 BUs generation, and a 13.3 GW capacity base, investors booked profits amid QoQ moderation.

The shares of a prominent power generation company plummeted up to 9.4 percent in today’s trading session despite the company reporting a sharp 237% jump in profits, largely driven by a deferred tax write-back of Rs 751 crore.

With a market capitalization of Rs 76,482.35 crore,  the shares of JSW Energy Ltd were trading at Rs 443.30 per share, increasing around 7.37 percent as compared to the previous closing price of Rs 478.55 apiece.

Q3FY26 Highlights

The shares of JSW Energy Ltd have seen significant movement after announcing its financial performance in Q3FY26, in which revenue increased by 67 percent on a year-on-year basis from Rs 2,439 crore in Q3FY25 to Rs 4,082 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue decreased by 21 percent from Rs 5,177 crore in Q2FY26 to Rs 4,082 crore in Q3FY26.

Moreover, net profit increased by 237 percent on a yearly basis from Rs 157 crore in Q3FY25 to Rs 529 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit decreased by 36 percent from Rs 824 crore in Q2FY26 to Rs 529 crore in Q3FY26.

During the quarter, JSW Energy (Utkal) signed a 400 MW PPA with Karnataka DISCOMs at  Rs 5 per unit for 25 years, effective April 1, 2026. The company’s net profit increased mainly due to recognition of deferred tax assets, including  Rs 577 crore at JSWEUL and  Rs 189 crore at JSW Mahanadi Power, arising from carry-forward losses and unabsorbed depreciation.

Operational Highlights

JSW Energy reported a robust Q3 FY26 performance. Power sales rose 65% YoY, with net generation increasing from 6.8 BUs to 11.1 BUs. Renewable generation jumped 96% to 3.2 BUs, while thermal output grew 55% to 7.9 BUs. Long-term PPA generation climbed 63%, driving EBITDA up 98%.

JSW Energy expanded its installed capacity to 13.3 GW, adding 125 MW of renewable power. It commissioned India’s largest green hydrogen plant at Vijayanagar with 3,800 TPA hydrogen and 30,000 TPA oxygen capacity. The company signed PPAs for 1,600 MW and 400 MW, approved a ₹3,000 crore equity issue, and secured 1,600 MW turbine supply, strengthening project execution and balance sheet.

JSW Energy has outlined an ambitious plan to scale its generation capacity to 30 GW by 2030, nearly tripling from the current 13.3 GW. The existing portfolio is well diversified, with thermal accounting for 33%, solar 20%, wind 19%, hybrid 22%, and hydro 6%. Around 32.1 GW is already locked-in through operational, under-construction, and pipeline assets, providing strong long-term visibility.

The growth roadmap is backed by 14,016 MW under construction or with PPAs signed, spread across thermal, wind, solar, hybrid, and hydro projects. A growing share of group captive and C&I customers ensures better tariffs and stable cash flows. With capacity expected to grow at ~20% CAGR till 2030, earnings visibility and risk diversification remain strong.

JSW Energy continues to make steady progress on its under-construction projects across renewable and storage segments. Around 3.5 GW of solar and nearly 2.4 GW of wind capacity are being developed across multiple locations. The 5 GWh battery assembly plant in Pune is nearing commissioning, with equipment installed and trial runs underway, strengthening its clean energy and storage ecosystem.

JSW Energy is a leading Indian power company with a diversified presence across thermal, solar, wind, hydro, and energy storage. Part of the JSW Group, it focuses on scalable growth, long-term contracts, and clean energy transition, aiming to build a resilient and sustainable power portfolio for India’s future.

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