JSW Energy Q4FY25: Some Growth, Clear Challenges Ahead
JSW Energy released its results for Q4FY25, showing steady growth, largely helped by its recent KSK acquisition. However, earnings remain under pressure, and the stock’s valuation is still on the higher side. Let’s take a closer look.
How Did JSW Perform in Q4FY25?
JSW’s revenue for the quarter stood at ₹3190 crore, which is a 16% increase from the same quarter last year, and 31% higher than the previous quarter. EBITDA and net profit also grew, but more moderately:
| Metric | Q4FY25 | YoY Change | QoQ Change |
|---|---|---|---|
Revenue | ₹3190 crore | +16% | +31% |
EBITDA | ₹1204 crore | +3% | +32% |
PAT (Net Profit) | ₹408 crore | +16% | +143% |
The jump in net profit compared to the last quarter is notable, showing some recovery after earlier challenges.
FY25 Full-Year Snapshot
Looking at the full year, EBITDA declined slightly due to tariff pressures, despite higher operational capacity:
JSW’s Capacity Growth Ambitions
JSW is targeting significant expansion over the next five years:
| Target Year | Generation Capacity Goal |
|---|---|
FY25 | 10.9 GW |
FY30 (Target) | 30 GW |
Along with this, the company plans to add 3-4 GW of renewable and thermal capacity every year.
Challenges to Keep in Mind
| Key Concern | Details |
|---|---|
Renewable Plant Load Factors | Modest PLFs have affected generation |
Valuation | Trading at 2.8x Price-to-Book |
Execution Risk | Potential delays not fully priced in |
Investment Summary
We maintain a SELL rating with a fair value of ₹420 against the current market price of ₹487.
| Metric | Value |
|---|---|
Current Market Price | ₹487 |
Fair Value (SoTP-based) | ₹420 |
Rating | SELL |
JSW Energy’s ambitious growth plan is clear, but execution challenges and valuation concerns remain. Monitoring upcoming quarters will be important to see how these play out.
Important Reminder
This is a summary of Kotak Securities research and not an investment recommendation. Please review the full report before making decisions.
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