- JSW Energy commissioned nearly 1.1 GW renewable capacity in first 100 days of FY27
- The company aims to add 3 GW of renewable capacity by the end of FY27
- Q1 net profit fell 36% due to higher finance costs from capacity expansion
JSW Energy Ltd. remains on track to add 3 GW of renewable energy capacity in FY27, with nearly 1.1 GW already commissioned within the first 100 days of the financial year, according to Chief Executive Officer Sharad Mahendra.
Mahendra said the company expects to commission 1.5-1.6 GW during the first half of the fiscal, surpassing the total greenfield capacity additions made in the previous financial year, the joint managing director said. "We are absolutely certain of adding 3 GW of new capacities during the full year, all in the renewable energy space," he told NDTV Profit in an interview.
Profit Hit By Expansion, Not Operations
Commenting on the company's June quarter earnings, Mahendra said the 36% decline in net profit was primarily due to higher finance costs and depreciation arising from aggressive capacity expansion rather than weakness in the underlying business.
The company commissioned 873 MW during the June quarter alone, resulting in higher interest expenses and depreciation as new assets were capitalised. "What is more important is the cash profit, which is in excess of Rs 1,400 crore. That enables us to continue with our growth momentum," Mahendra said.
He added that interest costs remained stable at around 8.36%, while the company's debt profile has improved following recent fund-raising.
ALSO READ: JSW Energy Q1 Result: Net Profit Falls 37%, Revenue Rises Over 1% To Rs 5,207 Crore
Early Project Commissioning Boosts Outlook
Mahendra said JSW Energy's operational performance was supported by the early commissioning of the Tidong hydro project, which became operational well ahead of its original October 2026 schedule.
The early completion allows the company to benefit from the entire hydro season this year, offsetting the impact of weak hydrology across the country due to poor monsoon conditions.
In the renewable energy business, generation increased 11% year-on-year, supported by new wind and solar capacity additions despite lower wind resource availability.
Thermal generation declined 5% in the June quarter after the Mahanadi plant was affected by an unforeseeable event following severe storms that damaged evacuation infrastructure. Mahendra said plant availability remained intact and fixed, while cost recovery was protected.
Battery Storage Orders To Contribute From Q3
Mahendra also said the company's recently announced battery energy storage system (BESS) order from its Pune battery assembly facility is expected to begin contributing marginally in the second quarter, with a more meaningful financial impact from the third quarter onward.
He added that work has already begun on battery storage projects in Kerala and Rajasthan, which are expected to be commissioned during the current financial year.
On leverage, Mahendra said JSW Energy's net debt-to-Ebitda ratio improved to 5.53 times from around 6 times at the end of FY26, while the ratio for operational assets has declined to 4.95 times, giving the company sufficient headroom to execute its expansion plans and achieve its long-term 30 GW capacity target by FY30.
ALSO READ: JSW Energy Q1 Review: Brokerages Stay Bullish Despite Q1 Profit Dip — Should You Buy?
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