JSW Energy Limited

Utilities — Utilities - Independent Power Producers · NSE

₹482.60+₹3.65 (+0.76%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of JSW Energy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

JSW Energy Limited generates and sells power in India. It has a power generation capacity of 10,875 MW, which includes 5,658MW of thermal, 1,391 MW of hydro, 1,671 of Wind, and 680 MW of solar.

IndustryUtilities - Independent Power Producers

SectorUtilities

Annual revenue₹18,692 Cr

How does it make money?

Turns over ₹18,692 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹58 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.8%

What is the outlook?

20 analysts covering the stock expect revenue to grow about 15.7% and earnings to grow about 27.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.7%

Est. earnings growth+27.4%

Analysts20

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +89% while net margin moved -20% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+89%

Margin effect-20%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 2.29x is high — earnings must service borrowings before shareholders see anything
✗ Current ratio of 0.76 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 1.4x — little room if profits dip
✗ Debt has grown 45.4% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

48/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

40/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

43.5x

3Y Median

48.7x

40 monthly readings · mean 51.7x · range 37.9x–81.7x

Sector Median

20.6x

median of 4 sector peers

🟢Current valuation is approximately 11% below its 3y median of 48.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 112% above the peer median of 20.6x.

vs. its own history

Fair

48.7x median over 40 months · -11%

vs. sector peers

Expensive

20.6x median of 4 peers · +112%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

15.0x

PEG

2.93

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 36.7% to 57.6% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 207% over 3 years, from ₹25,051 Cr to ₹76,946 Cr.
🔴High leverageFinancial
Debt/Equity of 2.29x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.0x to 1.4x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.76 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 36.7% to 57.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 7.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 112% above the peer median. That premium needs a reason that persists, or it closes.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 18% a year✓ 23.6% CAGR
Latest reported year was 1.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 56%✓ 57.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 7.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹412 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 4 neutral · 6 weak

Market Cap

₹88,430 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

43.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.76x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.09

Profitable

Profitable on a per-share basis

ROE

7.3%

Weak

Weak capital efficiency

ROCE

7.3%

Weak

Low return on total capital employed

Debt/Equity

2.29x

High

High leverage

Revenue Growth (YoY)

1.2%

Modest

Modest growth

Profit Growth (YoY)

-39.5%

Falling

Profits are shrinking

Dividend Yield

0.41%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹412 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

28.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

38.1%

Good

Healthy core-business profitability

Net Margin

10.4%

Good

Strong bottom-line conversion

Current Ratio

0.76

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

492.8 / 521.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9,910 Cr	₹11,265 Cr	₹11,484 Cr	₹18,692 Cr	+23.6%
EBITDA	₹3,635 Cr	₹5,679 Cr	₹5,902 Cr	₹10,771 Cr	+43.6%
EBITDA Margin	36.7%	50.4%	51.4%	57.6%	—
PAT (Net Profit)	₹1,478 Cr	₹1,723 Cr	₹1,951 Cr	₹2,239 Cr	+14.9%
EPS	₹8.99	₹10.47	₹11.18	₹12.74	+12.3%
ROE	7.9%	8.3%	7.1%	7.3%	—
ROCE	6.7%	8.0%	5.6%	7.3%	—
Total Debt	₹25,051 Cr	₹31,573 Cr	₹50,186 Cr	₹76,946 Cr	+45.4%
Free Cash Flow	-₹2,152 Cr	-₹1,799 Cr	-₹2,870 Cr	-₹412 Cr	—

🟢 Revenue has grown at 23.6% a year over 3 years.

🟢 EBITDA has grown at 43.6% a year over 3 years.

🟢 EBITDA Margin has risen from 36.7% to 57.6% over 3 years (+20.9 pts).

🟢 PAT (Net Profit) has grown at 14.9% a year over 3 years.

🟢 EPS has grown at 12.3% a year over 3 years.

🟡 ROE has held roughly flat at 7.3% over 3 years.

🟡 ROCE has held roughly flat at 7.3% over 3 years.

🔴 Total Debt has grown at 45.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.24 L Cr

Total Liabilities

₹90,604 Cr

Cash & Equivalents

₹4,142 Cr

Operating Cash Flow

₹9,898 Cr

Capex

-₹10,310 Cr

Shareholding (proxy)

Institutional Holding

21.9%

Insider Holding

66.7%

Corporate Actions

Next Earnings

22 Oct 2026

Dividend Rate

₹2

Ex-Dividend Date

05 Jun 2026

Analyst Consensus

Recommendations

12 Buy · 4 Hold · 5 Sell

Target Price (Mean)

₹612.27

+26.9% vs CMP

Target Range

₹475 – ₹720

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

2 positive2 mixed2 general

JSW Energy Share Price Falls 2.19% on Price Action View

Univest, 24 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

JSW Energy Secures 1,600 MW Salboni Order; Shares Fall 0.68%

HDFC Sky, 25 SeptOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

JSW Energy Limited Just Recorded A 106% EPS Beat: Here's What Analysts Are Forecasting Next

Simply Wall Street, 25 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

JSW Energy, Suzlon, IEX, Tata Power, NTPC, CIL: JM Financial maps risks post RBI’s rate hike

ET EnergyWorld, 14 Oct

JSW Energy receives certified copy of NCLT order for GE Power demerger

scanx.trade, 14 OctOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

JSW Energy Shares Advance 2.23% to Rs 577.00 on Monday Afternoon

Moneycontrol.com, 10 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Growth · Profitability · Valuation · Risk

WeakFinancial Health

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑