Whalesbook
JSW Energy said Tuesday its subsidiary, JSW Mahanadi Power Company Ltd., received a ₹1,447.34 crore demand for water charges from the Water Resources Division in Janjgir, Chhattisgarh. The company argues the demand is invalid, especially for charges accumulated before its resolution plan was approved under the Insolvency and Bankruptcy Code (IBC), 2016.
Legal Challenge Based on NCLT Approval
The National Company Law Tribunal (NCLT) in Hyderabad approved JSW Mahanadi Power's resolution plan on February 13, 2025. This approval stipulated that all crystallised and unclaimed liabilities of the subsidiary as of that date were extinguished, and stated that no creditors could claim amounts beyond what was stipulated in the resolution plan. Citing this prior ruling and the NCLT's directive, JSW Energy believes the current water charge demand is not payable. The company has challenged the order in the High Court of Chhattisgarh at Bilaspur.
JSW Mahanadi Power has continued to pay water charges since its resolution plan was implemented.
Robust Third Quarter Financials
Meanwhile, JSW Energy reported strong third-quarter results for FY26. The company reported a net profit of ₹420 crore, a significant 2.5-fold increase from ₹168 crore in the year-ago period. This surge was driven by higher power generation and contributions from recently acquired assets. Revenue in Q3 FY26 rose 67.4% year-on-year to ₹4,081 crore. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew sharply to ₹2,030 crore from ₹914 crore in Q3 FY25, widening the EBITDA margin to 49.7% from 37.5%.
For the nine months ending December 31, 2025, EBITDA grew 83% year-on-year to ₹8,439 crore, and Profit After Tax (PAT) increased 21% to ₹1,868 crore. Cash PAT for the quarter increased 12% year-on-year to ₹570 crore.
Capacity Expansion and Generation Growth
The company added 5.2 GW of capacity in the past 12 months, including 125 MW in Q3 FY26, enhancing its generation capacity. Net generation climbed 65% year-on-year to 11.1 billion units (BUs), with renewable energy up 96% to 3.2 BUs and thermal generation up 55% to 7.9 BUs.
Shares of JSW Energy Ltd. closed at ₹546.50 on April 21, reflecting a modest gain of 0.80% on the BSE.