JSW Energy has drawn sharply contrasting views from leading brokerages following its Q1 FY26 performance, with Jefferies maintaining a bullish stance while CLSA turned cautious.
Jefferies has reiterated a ‘Buy’ rating on the stock, setting a target price of ₹700 per share. The brokerage termed the June quarter an “operational beat,” driven by the smooth integration of the KSK Mahanadi acquisition and additional capacity from Q4FY25. JSW Energy ended Q1 with an installed capacity of 12.8 GW, including the recently completed O2 Power acquisition. Jefferies noted that the company is now well ahead of its earlier expectations for FY26 capacity expansion, with management confident of adding 2.5–3 GW in the remaining nine months versus the previously assumed 1.2 GW. The brokerage expects a robust 43% EBITDA CAGR over FY25–28, underpinned by scale expansion and integration synergies.
In contrast, CLSA downgraded its view to ‘Underperform’ and set a lower target price of ₹423 per share. While the firm acknowledged the 42% year-on-year PAT growth in Q1, it attributed the improvement largely to the recent thermal acquisition and higher other income, rather than organic operational performance. CLSA flagged that the core parent company’s performance was weak, with EBITDA and PAT down 40% and 36% YoY, respectively. It also highlighted a steep 59% year-on-year fall in thermal EBITDA per kWh, indicating margin pressures in the core business.
The divergent outlooks reflect differing interpretations of JSW Energy’s evolving structure post-acquisitions. While Jefferies is optimistic about the long-term scale and growth trajectory, CLSA appears cautious about near-term earnings visibility and margin pressures in legacy assets.
Disclaimer: The views and recommendations expressed are those of the respective brokerages. Please consult your financial advisor before making investment decisions.
