Revenue from operations, however, rose 60% YoY to Rs 5,177 crore, driven by higher renewable capacity additions and contributions from the Mahanadi and O2 Power projects.
Sequentially, profit after tax (PAT) declined 5% from Rs 743 crore in Q1 FY26, while revenue edged up 0.7% from Rs 5,143 crore.
On the operational front, EBITDA surged 67% YoY to Rs 3,180 crore, supported by organic renewable additions. For H1 FY26, EBITDA jumped 79% YoY to Rs 6,237 crore.
The company said its balance sheet remains healthy, with a net debt-to-equity ratio of 2.1x, and it is likely to continue pursuing growth opportunities in renewables.
Here’s what analysts say investors should do now:
ICICI Securities – Buy | Target price: Rs 700
ICICI Securities noted that JSW Energy reported a 78% YoY jump in operating profit to Rs 30,000 crore in Q2 FY26, driven by acquisitions of O2 Power, the Mahanadi thermal plant, and new renewable assets. However, net profit declined due to higher interest costs, depreciation, and lower profits at certain plants.The company has converted 40% of its capacity into long-term PPAs and is expanding further with a 150MW hydro project and the GE Power asset acquisition. Locked-in EBITDA has surged to Rs 36,000 crore (vs Rs 5,200 crore in FY25), supporting a strong >25% operating profit CAGR forecast from FY25–FY32E.
JM Financial – Buy | Target price: Rs 697
JM Financial highlighted that JSW Energy posted net revenue of Rs 5,180 crore, a 60% YoY increase, driven by 52% growth in organic renewable generation and recent acquisitions such as O2 Power and KSK Mahanadi. Average realizations rose to Rs 3.5/kWh, while EBITDA came in at Rs 3,000 crore, up 78% YoY. Adjusted PAT, however, declined 17% YoY to Rs 700 crore due to higher depreciation and interest costs.
The company has 30.5 GW of total generation capacity (13.2 GW operational), with 4.6 GW under construction. It also boasts 29.4 GWh of energy storage, including pumped hydro and battery systems. JSW Energy’s long-term target is 30 GW by 2030, supported by improving margins and strong capital discipline.
Also read: RIL shares surge 3% as Q2 profit rises 10% YoY. Should you buy, sell or hold?(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
