Street View- Expansion plans keep leverage concerns in focus for India's JSW Energy

JSW ENERGY

12/05/2026 05:51

** Shares of India's JSW Energy JSWE.NS fall 5.78% to 524 rupees after quarterly results

** Power co posted 8.9% y/y fall in fourth quarter profit to 5.74 billion rupees ($60.11 million)

FY27 EXECUTION, LEVERAGE REMAIN KEY CONCERNS

** J.P.Morgan ("underweight"; raises TP to 505 rupees from 452 rupees) says high fixed costs and rising debt could weigh on earnings despite thermal and renewable capacity additions; flags expensive valuations

** Ambit Capital ("sell"; TP to 525 rupees from 540 rupees) says valuations fully price in growth, cuts FY27/FY28 EBITDA estimates citing 200-billion-rupee capex pipeline

** ICICI Securities ("buy"; TP: 700 rupees) says capital raise remains key to easing leverage concerns despite strong long-term operating profit growth visibility

** CLSA ("hold"; raises TP to 558 rupees from 486 rupees) says weak merchant power markets and high funding costs continue to pressure profitability; sees likely equity raise overhang amid aggressive expansion

($1 = 95.4950 Indian rupees)

 (Reporting by Surbhi Misra in Bengaluru)

 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))