JSW Energy Q1 FY27 Results Conference Call Transcript

Capacity Addition:

Added 873 MW during Q1 FY27, representing one of the largest single-quarter capacity additions in company history
Cumulative additions reached approximately 1.1 GW till date (since April 2026)
150 MW from early commissioning of Tidong Hydro (originally scheduled for October 2026), contributing incremental ₹20-22 crore to EBITDA in Q1
Added 225 MW organic renewable energy capacity in July till date
Total installed capacity now stands at 14.6 GW, with renewables constituting 61% (8.9 GW) and thermal at 5.7 GW

FY27 Targets:

Q1 FY27 Financials:

Balance Sheet & Liquidity:

Successful ₹10,150 crore capital raise comprising:
₹3,000 crore preferential allotment to promoters (₹1,125 crore received, balance before June 2027)
₹3,150 crore from monetizing 2.5 crore shares of JSW Steel out of 7 crore shareholding
₹4,000 crore QIP anchored by marquee global and domestic institutional investors
Cash and cash equivalents: ₹12,880 crore
Net Debt to TTM EBITDA: 4.95x (improved from 5.2x in FY26)
Target to maintain net leverage below 5x by 2030
Cash return on net worth: ~14% (after adjusting for JSW Steel shareholding)

Generation Metrics:

Net generation: 12.9 billion units (down 5% YoY)
Hydro generation: declined 26% YoY due to weak hydrology across basins
Thermal generation: 8 billion units (down 6% YoY)
Solar generation: up 29% YoY
Wind generation: up 3% YoY
Mahanadi generation impacted by 17-day evacuation availability issue (184 MU loss, categorized under Force Majeure)

Environmental Impact:

Power Demand Trends:

Q1 FY27 demand grew 8.5% YoY (vs 0.9% growth in FY26)
July month-till-date demand growth robust at ~12%
Peak power demand touched 271 GW in May (surpassing FY26 peak of 245 GW)
Expected to touch 300 GW in near term
Merchant market DAM prices averaged ₹5.10/unit in Q1 FY27 (vs ₹4.40/unit in Q1 FY26, 16% increase)

Thermal Expansion:

Signed definitive agreement to acquire Maruti Clean Coal & Power Limited (300 MW thermal plant in Chhattisgarh)
195 MW (net) long-term PPA with Rajasthan discoms (14 years residual life)
5% power at variable cost to Chhattisgarh discom
~64 MW merchant capacity
Long-term FSA with SECL under SHAKTI scheme
Salboni Phase 1: Received all key clearances, 100% land acquired, equipment orders placed, site work in progress
KSK brownfield expansion: Land, water, rail, transmission infrastructure, and environmental clearances in place

Vertical Integration:

Increased stake in Toshiba JSW Power Systems JV to 10.7% from 2.4%
Ongoing acquisition of GE's boiler business expected to complete this quarter
Commissioned wind blade manufacturing facility at Halol, Gujarat (450 blades/year capacity, supporting 600 MW wind installations annually)
Second facility at Chitradurga expected by FY27

Energy Storage Business:

Pumped Storage Projects:

Bhavali project (1,500 MW) with MSEDCL: Environmental clearance received, land acquisition mostly complete, forest Stage 1 clearance received, orders placed to L&T (civil) and Voith (electromechanical)
Kandhaura project (1,680 MW) with UP: ESC recommendation for EC received, forest clearance application submitted
Expected high-teen IRRs for pumped storage projects

300 MW currently under TGNA facing curtailment (expected conversion to GNA by 31st August)
400 MW O2 Power project in Rajasthan under TGNA (connectivity expected September-October)
530 MW of remaining 1.9 GW FY27 capacity is group captive (off-grid, insulated)
Remainder secured with connectivity operational

Expect hydro plants to catch up and achieve design energy for full year
Utkal plant expected to generate higher EBITDA due to stable operations and PPA with Karnataka and Assam
Committed to Strategy 3.0 delivery within defined timelines
Evaluating selective, value-accretive acquisition opportunities
Exploring merchant battery storage opportunities