JSW Energy Confident of Adding 3 GW Renewable Capacity in FY27 Despite Q1 Profit Decline, Says CEO Sharad Mahendra

JSW Energy Ltd. is still on track to realize its renewable energy ambitions despite a year-end decline in earnings. Sharad Mahendra, the Chief Executive Officer of JSW Energy, has said that JSW Energy will develop 3 gigawatts (GW) of renewable power capacity in the next year, and almost 1.1 GW is already commissioned in the first 100 days of the year.

It is the confidence of the company that goes hand in hand with rising finance costs and depreciation from large investments in new projects.

Renewable Expansion Gains Momentum

JSW Energy has made a good start to FY27 by commissioning 873 MW of renewable capacity during the June quarter alone. The company is expected to commission 1.5 to 1.6 GW in the first half of the year, which is in excess of the total greenfield capacity added in FY26.

"We are certain of adding 3 GW of new capacities during the full year, all in the renewable energy space," Mahendra said when discussing the company's expansion roadmap.

Such capacity additions are at the heart of JSW Energy's plan to rapidly expand its energy portfolio and the clean energy transition of India.

Profit Impacted by Expansion Costs

In the June quarter, although the company reported a 36% year-on-year decrease in net profit, Mahendra said the decline was not because of operational weakness.

Instead, the decline occurred due to:

• Higher interest expenses after capacity expansion.
• Increased depreciation after newly commissioned assets were capitalised.
• Continued investment in renewable infrastructure.

The company’s operational business fundamentals are healthy, he said, despite short-term accounting impacts.

Strong Cash Profit Supports Growth

Mahendra said cash profit more than reached ₹1,400 crore in the quarter, which is enough financial strength for the organization to continue with expansion.

He noted that:

• Interest costs were stable at around 8.36%.
• The debt profile of the company has improved post recent fundraising activities.
• Strong cash generation will continue to support capital expenditure in the future.

Cash profitability remains a more important indicator of the company's financial health than net profit during times of rapid expansion, the management said.

Early Commissioning of Tidong Hydro Project

One of the biggest operational highlights for JSW Energy was the early completion of the Tidong Hydroelectric Project.

When it was due to be commissioned in October 2026, the project was launched much earlier.

The early commissioning allows JSW Energy to benefit from the whole hydro generation season this year, mitigating weaker hydrological conditions due to inconsistent monsoon across several regions.

Renewable Generation Continues to Grow

Despite a lower wind resource availability in the quarter, renewable energy generation increased 11 percent year-on-year, driven by new wind and solar projects commissioned.

The growth is in line with the company’s diversified renewable portfolio and ongoing investment in clean energy technologies.

Thermal Business Faces Temporary Setback

JSW Energy's thermal generation declined 5% during Q1 FY27 after severe storms damaged power evacuation infrastructure connected to the Mahanadi plant.

Mahendra said that the plant was still operational and available, and contractual agreements were in place to maintain fixed cost recovery despite lower generation.

The disruption is expected to be temporary, and restoration work is already underway.

Battery Storage Business to Contribute from Q3

The company is also making significant progress in battery energy storage systems (BESS).

Mahendra said that JSW Energy's recently announced battery storage order from its Pune battery assembly facility will start to make a small contribution during the second quarter, and more meaningful revenue will come from the third quarter onwards.

Construction has already commenced on battery storage projects in:

• Kerala.
• Rajasthan.

The two projects should be commissioned in the current financial year, strengthening the company's integrated renewable energy portfolio.

Improving Financial Position

JSW Energy also achieved improvements in its leverage ratios.

Key financial indicators include:

• Net Debt-to-EBITDA: improved to 5.53x from around 6x at the end of FY26.
• Operational Assets Debt-to-EBITDA: reduced to 4.95x.

Looking ahead, management believes that these improvements offer enough financial flexibility to continue the expansion strategy and to achieve their long-term goal of 30 GW of installed power generation capacity by FY30.

Outlook

Despite the near-term pressure on reported earnings, JSW Energy is focused on sustainable growth with renewable energy investments, battery storage investments, and hydroelectric capacity expansion. The company has strong cash generation, improved leverage, and early commissioning of strategic projects, which have improved the forecast for the next year (FY27).

With renewable energy still integral to its expansion strategy, JSW Energy is well positioned to benefit from India's growing shift towards clean and sustainable energy development.