JSW Energy Q3 Results Review: Motilal Oswal Maintains 'Buy' On The Stock, Revises Target Price — Here's Why

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Motilal Oswal Report

JSW Energy Ltd.'s Q3 FY25 Ebitda declined 18% YoY to Rs 9.1 billion (estimate: Rs 12.7 billion), dragged down by lower merchant spreads (Rs2.6 billion impact) and high other opex due to the start of nearly 0.9GW in capacity since Q3 FY24.

Net generation was up 10% YoY, helped by the start of 377MW wind capacity and the continued ramp-up at Ind Barath. JSW Energy management has maintained its guidance of achieving 10GW in operational capacity by FY25 end.

JSW Energy remains hopeful of consummating both the KSK Mahanadi and O2 Power acquisitions by Q2 FY26. The total pipeline (organic + inorganic) now stands at ~28GW.

Considering the weak Q3 FY25 financial performance, we lower our FY25 adjusted PAT by ~5%. However, we believe the core story remains intact and the company is on track to nearly double its capacity to ~14GW by June-25 (assuming KSK Mahanadi and O2 Power acquisitions are consummated).

We maintain our Buy rating with a revised target price of Rs 770.

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