JSW Energy profit rises, but costs pressure year-on-year margins
Sequential momentum improved as revenue grew faster than expenses, while other income contributed 21.40% of pre-tax profit.
Filed 28 Oct 2026, 18:48 IST · after market close · JSW Energy Ltd (JSWENERGY)
Key takeaways
- Consolidated net profit rose 38.43% year on year to Rs 1,141.04 cr, helped by a lower sequential tax rate.
- Operating margin narrowed 1.08 percentage points year on year because expenses grew 26.14% against 23.00% revenue growth.
- The company’s 56.80% operating margin was 13.38 percentage points above the 43.42% median for five Utilities peers.
Price around the results
Revenue momentum returned in Q2FY27
Consolidated revenue growth accelerated sequentially, with revenue up 22.30% from Q1FY27 and operating profit up 25.91%. Year on year, revenue increased 23.00%, but operating profit grew more slowly at 20.73%, pointing to some cost pressure despite the higher scale. The 56.80% operating margin remained 13.38 percentage points above the 43.42% median of five Utilities peers.
Sequential margin recovery masks annual cost pressure
Quarter on quarter, expenses grew 17.87% against 22.30% revenue growth, widening operating margin by 1.62 percentage points. Year on year, expenses grew faster than revenue—26.14% versus 23.00%—so margin narrowed by 1.08 percentage points. The margin has recovered from 49.72% in Q3FY26 and 50.01% in Q4FY26 to 56.80% now, after reaching 55.18% in Q1FY27.
Lower tax rate amplified sequential profit growth
Net profit more than doubled sequentially as pre-tax profit rose 93.71%, while the tax rate fell 8.10 percentage points to 15.34%. Other income accounted for 21.40% of pre-tax profit, so reported profit also had a meaningful non-operating contribution. Year on year, interest expense rose 13.91% and tax expense rose 57.61%, limiting the conversion of revenue growth into profit growth.
Management outlines renewable and storage build-out
Management said the company commissioned 1.4 GW in H1FY27 and has 1.6 GW across 30 projects fully de-risked for H2 delivery. It is targeting 3 GW of renewable capacity additions in FY27, while the presentation flags 15,348 MW of under-construction capacity with signed PPAs. Management also said it expects to expand its C&I portfolio to 8.6 GW and is targeting 1.0 GWh of BESS capacity by FY27, although some pipeline projects still do not have signed PPAs or ESAs.
No immediate market reaction after post-close filing
The consolidated results were filed after market close, so there is no reported stock reaction yet. After the previous eight results, the stock rose once and fell seven times, with a median absolute move of 3.38%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,368 cr | ₹5,207 cr | +22.30% | +23.00% |
| Other income | ₹288 cr | ₹232 cr | +24.56% | +55.41% |
| Expenses | ₹2,751 cr | ₹2,334 cr | +17.87% | +26.14% |
| Operating profit | ₹3,618 cr | ₹2,873 cr | +25.91% | +20.73% |
| Operating margin (%) | 56.80% | 55.18% | — | — |
| Interest | ₹1,615 cr | ₹1,519 cr | +6.28% | +13.91% |
| Depreciation | ₹943 cr | ₹890 cr | +6.04% | +16.61% |
| Profit before tax | ₹1,348 cr | ₹696 cr | +93.71% | +41.06% |
| Tax | ₹207 cr | ₹163 cr | +26.80% | +57.61% |
| Net profit | ₹1,141 cr | ₹533 cr | +114.20% | +38.43% |
| EPS (₹) | ₹5.77 | ₹2.64 | +118.56% | +42.82% |
Operating margin of 56.80% compares with a Utilities sector median of 43.42% across 5 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +5.59% | +4.54% |
Volume on the results session was 6.91× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company is targeting 3 GW of renewable capacity addition in FY27.
- The company expects to expand its C&I portfolio to 8.6 GW.
- The company is targeting 40 GWh of energy storage capacity by 2030.
- The company is targeting 1.0 GWh of BESS capacity by FY27.
Expansion
- The company commissioned 1.4 GW in H1 FY27 and plans 1.6 GW across 30 projects in H2.
- The company has 15,348 MW of under-construction capacity with signed PPAs.
New initiatives
- The company is retrofitting and upgrading power plant equipment to improve energy efficiency and reduce emissions.
Problems & risks
- The pipeline includes projects for which PPAs have not yet been signed.
- ESA has not yet been signed for the pipeline energy-storage projects.
What to watch
- Whether consolidated operating margin holds above 56.80%.
- Progress against management’s 1.6 GW H2 delivery plan across 30 projects.
- Whether the 15,348 MW under-construction portfolio continues to carry signed PPAs.