JSW Energy Sees O2 Power Acquisition Boosting Growth Trajectory In FY26

JSW Energy Ltd.'s recent acquisition of O2 Power Midco Holdings and O2 Energy SG will significantly boost the company's growth trajectory and support its capacity expansion plans, its Joint Managing Director and Chief Executive Officer Sharad Mahendra told NDTV Profit on Monday. 

JSW Neo Energy, a subsidiary of JSW Energy, on Dec. 27 signed a definitive agreement to acquire a 100% stake in Power Midco Holdings Pte. and O2 Energy SG Pte., along with their subsidiaries, for Rs 12,468 crore. The acquired entities have a consolidated operation and under development renewable energy portfolio of 4.7 gigawatts in India.

JSW Energy is poised to accelerate its growth in fiscal 2026 with this acquisition, Mahendra said, while commenting on the deal.

The acquisition of O2 Power boosts the "pipeline of another 9.2 gigawatts (energy addition) from JSW Energy portfolio", he explained. "The pipeline takes us 24 to 25 gigawatts. There are signed PPAs, which have a timeline of 18 to 24 months. So, definitely, we will be accelerating our growth,” he added.

JSW Energy had previously set a target to add 10 gigawatts of capacity through inorganic growth by March 2025.

“We are on track to reach close to 10 gigawatts by March 2025 and for the O2 platform (we will reach) 2.3 gigawatts by June 2025,” Mahendra mentioned.

“By June 2025, with O2 (integration) already done… we will definitely have more than 13 to 14 gigawatts,” the top executive noted.

JSW Energy will largely fund the Rs-12,468 crore acquisition of O2 Power through internal accruals, Mahendra said.

“In April 2024, we raised a QIP of Rs 5,000 crore and in September closing or H1 closing, we reported a free cash of Rs 5,700 crore. So, we are very comfortable with our (funds). It (O2 acquisition) will be a mix of internal accruals,” he said.

Shares of JSW Energy opened lower on Tuesday, and were trading 0.99% down at 637.10 as of 10:29 a.m., while benchmark NSE Nifty 50 was 0.54% down at 23,518.10.