Sign in Subscribe
Financial services

Axis Securities Maintains Buy on JSW Energy with 37% Upside Target

Strategic Insights

— 1 min read

Axis Securities has reiterated its positive stance on JSW Energy, predicting a 37% upside from the current price due to the company's robust operational performance, capacity expansion, and investments in clean energy infrastructure.

Key Takeaways:

  • JSW Energy saw a significant surge in power generation during Q1FY26, with installed capacity increasing from 10.9 GW in Q4FY25 to 12.8 GW, driven by the acquisition of the 1.3 GW O2 portfolio and commercialization of 550 MW in renewable energy projects.
  • The company is on track to meet its FY26 capacity addition target of 3-4 GW, with 12,983 MW under construction, 11,383 MW dedicated to renewable projects, and 30 GW of locked-in capacity.
  • JSW Energy is investing in in-house manufacturing and storage, including a 5 GW battery assembly plant in Pune and wind blade manufacturing facilities across western and southern India.
  • The company's shift toward domestic coal-based power generation has reduced its exposure to merchant risk and increased predictability of earnings.
  • Axis Securities values JSW Energy using a sum-of-the-parts (SOTP) approach, valuing the generation business at 12x FY27E EV/EBITDA and the energy storage business at 1x P/BV, leading to a fair value estimate of Rs 705 per share, representing a 37% upside from the current price.

Statistics:

  • Installed capacity: 10.9 GW (Q4FY25) to 12.8 GW (Q1FY26)
  • Power generation: 13,494 MUs (Q1FY26), a 71% growth year-on-year and quarter-on-quarter
  • Capacity addition target: 3-4 GW (FY26)
  • Locked-in capacity: 30 GW
  • Wind blade manufacturing facilities: Currently under construction in western and southern India
  • Battery assembly plant: 5 GW rated capacity in Pune, requiring an initial capital outlay of Rs 165--180 crore

Sources:

  • "Axis Securities on JSW Energy: Power output surge as new capacity lights up" (no date provided)
  • "Axis Securities on JSW Energy: Green growth plans and locked-in targets" (no date provided)
  • "Axis Securities on JSW Energy: Bet on in-house manufacturing and storage" (no date provided)
  • "Axis Securities on JSW Energy: Less exposure to merchant risk, more predictable earnings" (no date provided)
  • "Axis Securities on JSW Energy: Valuation" (no date provided)
  • IE Online Media Services Pvt. Ltd. (2025)
  • Contify.com (no date provided)

Read more