Whalesbook
Analyst Support Remains Strong
ICICI Securities maintains a positive view on JSW Energy, citing its solid strategic plan and progress in execution. The firm notes JSWE has diversified its portfolio across power generation and energy storage.
Ambitious Growth Targets
JSWE aims to reach 30GW generation capacity and 40GWh energy storage by 2030. This goal is backed by significant operational growth, increasing capacity 1.6 times in the last 15 months. Although organic renewable capacity growth has been slower than expected, the company plans to add about 3-3.5GW annually, which should boost its FY26 EBITDA.
Diversified Energy Pipeline
Beyond renewables, JSW Energy has nearly 5GW of thermal power capacity under development. This thermal capacity is expected to start coming online gradually from the second half of FY28. These projects are key to JSWE's long-term strategy for meeting varied energy needs.
Mitigating Execution Risks
Over the last year, JSW Energy has taken steps to lower execution and operational risks. These include securing Power Purchase Agreements (PPAs) for new coal capacity and strengthening supply chains for its thermal, wind, and battery storage operations. These actions aim to ensure stable operations and predictable finances long-term.
Profitability Outlook
Based on its current projects and expansion plans, ICICI Securities expects JSW Energy's operating profit to grow at a Compound Annual Growth Rate (CAGR) of over 22% from FY26 to FY32. The firm's Sum-of-the-Parts (SoTP) target price of INR 700 remains unchanged, showing continued confidence in JSWE's execution and market position.