JSW Energy Targeted at Rs 644 by Prabhudas Lilladher

JSW Energy Reports Strong Q4FY26 Performance, Maintains Robust Growth Outlook

JSW Energy, a leading energy company, has reported a robust Q4FY26 performance, with earnings before interest, taxes, depreciation, and amortization (EBITDA) rising by 72% year-over-year (YoY), outpacing consensus estimates by approximately 11%. This strong performance is a testament to the company's strategic initiatives and operational efficiencies.

The company has made significant strides in expanding its capacity, adding approximately 2.6 gigawatts (GW) of operational capacity during FY26 through a combination of organic and inorganic growth routes. As a result, JSW Energy's total operational capacity now stands at approximately 13.45 GW, with a robust pipeline of 14 GW under construction and 32 GW of locked-in capacity. This expansion is expected to drive growth, with operational capacity projected to increase at a 19% compound annual growth rate (CAGR) over FY26-28E, alongside EBITDA, which is expected to deliver a 15% CAGR.

JSW Energy continues to prioritize renewable expansion, with renewables contributing 58% of its FY26 operational capacity. The company expects renewables to account for 71% of its operational capacity by FY28E, underscoring its commitment to sustainable energy growth. Additionally, JSW Energy is scaling its energy storage portfolio, with a pipeline of approximately 29.6 GWh.

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With a Buy rating, Prabhudas Lilladher has set a SOTP-based target price of INR 644 for JSW Energy's stock, citing its strong EBITDA growth prospects in the power sector. Notably, the company's net debt increased to approximately INR 658 billion in FY26, primarily due to ongoing capital expenditures (capex). JSW Energy plans to invest approximately INR 200 billion in capex for FY27. However, the company's leverage remains within its guidance, with a net debt-to-equity ratio of 2.1x and operational net debt-to-EBITDA ratio of 5.2x as of FY26.