Shares of JSW Energy are facing immense pressure in trade on Tuesday after the company reported its third-quarter earnings for the financial year ending March 2026. The stock is currently trading at Rs 434, which accounts for a correction of almost 10% compared to Friday's closing price of Rs 482.
The pressure comes even after the company reported a 65% year-on-year surge in net generation. This growth was primarily driven by higher asset availability and a significantly expanded capacity base. Notably, JSW Energy has added 5.2 GW of capacity in the last 12 months, with 125 MW commissioned in Q3 FY26 alone.
Source: NDTV Profit
While operational numbers for JSW Energy looked relatively strong, the company also reported more than a two-fold growth in net profit, rising from Rs 168 crore to Rs 420 crore. However, the bottom line was aided by a tax write-back of around Rs 751 crore. Revenue, though, had a 67% YoY uptick to Rs 4,082 crore.
Despite the numbers, JSW Energy saw its target price being lowered by Jefferies as well as Elara Capital.
JSW Energy Q3 Highlights (Consolidated, YoY)
- Revenue up 67.4% at Rs 4,082 crore versus Rs 2,439 crore.
- EBITDA at Rs 2,030 crore versus Rs 913 crore.
- EBITDA margin at 49.7% versus 37.5%.
- Net profit at Rs 420 crore versus Rs 168 crore.
- PAT includes a deferred tax write-back of Rs 751 crore.
Shares of JSW Energy currently trade with a relative strength index of 40, which suggests neutral market sentiment. The stock has corrected more than 17% on a year-to-date basis.
Out of 17 analysts tracking the company, 12 maintain a 'buy' rating, one recommends a 'hold,' and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 32%.
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