Shares of JSW Energy fell 8 percent in early trading on Tuesday, despite the company announcing strong earnings growth for the March quarter. Investors expressed concern over high valuations and cautious guidance from brokerages following the stock’s recent rally.
The stock dropped to a low of ₹512 on the National Stock Exchange, compared to the previous close of ₹556.65, before slightly recovering to ₹526 by 9:46 AM.
For the fourth quarter of FY26, JSW Energy reported a year-on-year increase of 38 percent in consolidated net profit, reaching ₹574 crore, up from ₹415 crore a year prior. Revenue from operations rose by 39 percent year-on-year to ₹4,851 crore, up from ₹3,497 crore, while EBITDA surged by 72 percent year-on-year to ₹2,602 crore. This growth was driven by contributions from Mahanadi, O2 Power, and organic capacity additions. The board proposed a dividend of ₹2 per equity share.
Management emphasized that its scale-up strategy remains on course, noting that energy storage has emerged as a significant growth area. They reported an increase of 118 MW in installed capacity during the quarter, reiterating confidence in achieving a target of 30 GW by 2030, with 13.4 GW operational, 14 GW under construction, and a pipeline of 4.6 GW.
Motilal Oswal maintained a buy rating on the stock with a target price of ₹640, applying a sum-of-the-parts valuation approach. The brokerage assessed thermal assets at 9x estimated EBITDA for December 2027, renewable energy at 12x estimated EBITDA for FY28, and hydro assets at 2x estimated book value for December 2027. Additionally, they evaluated the company’s stake in JSW Steel at a 25 percent discount to the current market price.
Conversely, JM Financial downgraded the stock from buy to add, adjusting its target price to ₹627 due to perceived expensive valuations after the recent increase. They noted an adjusted revenue rise of 38 percent year-on-year to ₹4,400 crore, while adjusted profit after tax fell 36 percent year-on-year to ₹260 crore. They cited high debt levels due to acquisitions and capital expenditures, though they expect leverage metrics to improve over time.
Elara Capital also changed its rating for JSW Energy from buy to accumulate, raising its target price to ₹602 from ₹581. The brokerage acknowledged the company’s strong positioning for long-term growth, bolstered by a robust capacity addition pipeline and significant plans for storage expansion, although they tempered their outlook following a 14 percent increase in the stock over the previous three months.
Published on May 12, 2026.
