JSW Energy Expands RE and Thermal Assets, Posts INR 2,640 Crore Revenue in Q3 FY25

JSW Energy Ltd. reported its financial results for the third quarter of fiscal year 2025 (Q3 FY25) along with significant strategic acquisitions that bolster its renewable and thermal energy portfolio.

As per the firm's statement, the company has signed a definitive agreement to acquire a 4,696 MW renewable energy platform from O2 Power for INR 12,468 crore, with 2.3 GW of capacity expected to be operational by June 2025 and an additional 2.4 GW by June 2027.

Besides, JSW Energy completed the acquisition of 125 MW of wind projects from Hetero Group for INR 630 crore on January 10, 2025, and emerged as the successful bidder for the 3,600 MW KSK Mahanadi Thermal Power Plant on January 13, 2025, with 1,800 MW already operational and secured under long-term Power Purchase Agreements (PPAs). These acquisitions significantly expand JSW Energy’s footprint in both the renewable and thermal energy sectors.

In terms of operational performance, JSW Energy achieved a 10 percent year-over-year (YoY) increase in net generation, totalling 6,751 million units (MUs) in Q3 FY25, compared to 6,128 MUs in Q3 FY24. Wind capacity additions, along with improved performance from the Utkal Unit-1 and hydro plants, were major contributors to this growth. Renewable energy generation grew by 18 percent YoY, totalling 1.6 billion units (BUs), with wind generation rising by 38 percent and hydro generation by 14 percent. Thermal generation also saw an 8 percent YoY increase, reaching 5.1 BUs. Generation from projects with long-term PPAs grew by 7 percent YoY, totalling 5.6 BUs.

Financially, total revenue for the quarter decreased slightly by 1 percent YoY, amounting to INR 2,640 crore, down from INR 2,661 crore in Q3 FY24. EBITDA declined by 9 percent YoY, totalling INR 1,115 crores, primarily due to lower short-term market spreads despite an increase in overall generation. Profit After Tax (PAT) decreased to INR 168 crores from INR 231 crores in the same quarter last year, while Cash PAT for the quarter was INR 507 crores. The company’s balance sheet remains strong, with a net debt-to-equity ratio of 1.0x and a liquidity position of INR 4,947 crore as of December 31, 2024. Days Sales Outstanding (DSO) stood at 96 days.

JSW Energy continues to strengthen its capacity with a total locked-in generation capacity of 28.3 GW, having added 377 MW of wind capacity in Q3 FY25. The company also secured a 400 MW ISTS-connected solar project from NTPC in December 2024. In the commercial and industrial segment, JSW Energy secured 344 MW of third-party renewable energy capacity, bringing the total locked-in capacity in this segment to 3.1 GW.

The firm further informed that it is focusing on future growth through projects such as its 3,800 TPA green hydrogen plant, expected to be commissioned by March 2025, and a 12 GWh pumped hydro storage project with Maharashtra State Electricity Corporation Ltd. (MSECL), slated for completion in 48 months.

In terms of business environment, India’s power demand grew by 2.6 percent YoY in Q3 FY25, reaching 393 billion units (BUs), with peak demand hitting 224 GW in December 2024. Renewable energy generation saw a 15 percent YoY increase, with solar power generation surging by 26 percent, while hydro generation grew by 29 percent. The total installed power generation capacity in India reached 462 GW as of December 2024, reflecting a net increase of 9.3 GW in Q3 FY25. The outlook for India’s power sector remains positive, with expectations for continued growth in both economic and power sector performance, supported by investments and urbanisation. However, challenges remain in balancing growing power demand with reliable base load capacity.