JSWENERGYNSEMay 15, 2025

JSW Energy Limited

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Management on call

Sharad Mahendra

JOINT MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER, JSW ENERGY LIMITED

Pritesh Vinay

DIRECTOR (FINANCE) & CHIEF FINANCIAL OFFICER, JSW ENERGY LIMITED

Bikash Chowdhury

HEAD (INVESTOR

Rajesh Majumdar

B&K SECURITIES

Key numbers — 40 extracted

10 GW

wable energy company in India this year. During the year, we crossed the significant milestone of 10 GW set under Strategy 2.0 and as I speak today, JSW Energy is a 12.2 GW company, reflecting the mome

12.2 GW

d the significant milestone of 10 GW set under Strategy 2.0 and as I speak today, JSW Energy is a 12.2 GW company, reflecting the momentum we have built across both organic and inorganic expansion. In FY

3.6 GW

omentum we have built across both organic and inorganic expansion. In FY2025 alone, we have added 3.6 GW of capacity strengthening the diversity and scale of our portfolio. This has resulted in company

₹ 6,115 Crore

scale of our portfolio. This has resulted in company reporting the highest ever annual EBITDA of ₹ 6,115 Crore and Record highest PAT of ₹ 1,951 Crore. Before we delve into our performance, I'd like to share

₹ 1,951 Crore

ed in company reporting the highest ever annual EBITDA of ₹ 6,115 Crore and Record highest PAT of ₹ 1,951 Crore. Before we delve into our performance, I'd like to share some sector highlights. The dynamics are

1,600 MW

ing strategic importance. Having said this, We are happy to inform, JSW Energy has also secured a 1,600 MW ultra-supercritical plant in West Bengal which is fully tied up with WBSEDCL. Coming to capacit

472 GW

tied up with WBSEDCL. Coming to capacity additions, India’s total installed capacity has reached 472 GW, and the country has added 33 GW in fiscal year 2025. Notably, renewable energy led the growth,

33 GW

apacity additions, India’s total installed capacity has reached 472 GW, and the country has added 33 GW in fiscal year 2025. Notably, renewable energy led the growth, accounting for a record 29 GW of t

29 GW

dded 33 GW in fiscal year 2025. Notably, renewable energy led the growth, accounting for a record 29 GW of the total additions. This surge was primarily driven by solar power, which contributed 24 GW,

24 GW

d 29 GW of the total additions. This surge was primarily driven by solar power, which contributed 24 GW, followed by 4.2 GW of wind capacity. The power demand for the country grew 4.2% in fiscal year 2

4.2 GW

l additions. This surge was primarily driven by solar power, which contributed 24 GW, followed by 4.2 GW of wind capacity. The power demand for the country grew 4.2% in fiscal year 2025. In the fourth q

4.2%

ich contributed 24 GW, followed by 4.2 GW of wind capacity. The power demand for the country grew 4.2% in fiscal year 2025. In the fourth quarter we saw a demand growth of 3.2% year on year on a high

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Guidance — 20 items

Sharad Mahendra

opening

“Structurally we continue to expect strong power demand in the medium term.”

Sharad Mahendra

opening

“The peak demand witnessed in the quarter is 238 GW in Feb ’25 and 250 GW in FY25.”

Sharad Mahendra

opening

“These greenfield wind capacity additions include the completion of SECI X wind project of 454 MW.”

Sharad Mahendra

opening

“We have improved PLF to 79% from FY25 average of 67% post completion of the transaction that is within 25 days of our operations in the month of March.”

Sharad Mahendra

opening

“We are currently integrating operations with JSW Energy and implementing comprehensive plan to bring cost efficiencies.”

Sharad Mahendra

opening

“The current installed capacity of O2 is 1.3 GW and we expect it to scale to 4.7 GW by June 2027 by undertaking capital expenditure of ₹ 13,000- ₹ 14,000 crore.”

Sharad Mahendra

opening

“The under-construction portfolio includes 9.7 GW of renewable energy projects and 1.6 GW Salboni ultra-supercritical thermal power project which marks our investment in greenfield thermal after more than a decade.”

Sharad Mahendra

opening

“Beyond this we have a robust project pipeline of approximately 4.9 GW of projects where Letters of Intent or Letters of Award have been secured and PPAs are yet to be signed.”

Sharad Mahendra

opening

“Notably, the Bhavali in Maharashtra, the 12 GWh hydro pumped storage project which is tied up with MSEDCL is currently under implementation.”

Sharad Mahendra

opening

“In addition, recently in Q1FY26 we have signed PPA with UPPCL for another 12GWh of PSP project to be delivered in next 6 years.”

Risks & concerns — 15 flagged

So therefore, these are things out there and it's very difficult to crystal ball and pinpoint exactly.

— Pritesh Vinay

See, it's difficult to quantify exactly.

— Sharad Mahendra

And also to add, which we have to reiterate again, which we said earlier, for maybe next two years, whatever projects under construction to be executed, we all know that there is a challenge in terms of getting the CTU connectivity, which in general the industry is facing.

— Sharad Mahendra

So therefore, depending on how the interest rate environment moves out and all signs seem to be a more benign rate curve trajectory going forward, there will be an impact of that.

— Pritesh Vinay

So for example, if you want to do a a three year issuances and assume the rollover refinancing risk, the number can be much finer.

— Pritesh Vinay

That scenario has changed and we don't see right now of the module availability at the right price as a challenge.

— Sharad Mahendra

That was not a challenge at all because the preparatory groundwork, the way this amount which has been already invested was done judiciously that as and when the clarity comes because in that time also the regulatory approvals were pending to the PPAs were signed.

— Sharad Mahendra

So we don't see any challenge except ordering, yes you are right, we had ordered but this is being used in alternate projects.

— Sharad Mahendra

So monitoring or gauging it from individual projects becomes extremely difficult.

— Dhruv Muchhal

Right, so we will be watching out closely and as Sharad said, whatever can be done to salvage that aspect and ultimately the bottom-line is this, that you know, there has to be a certain amount of risk appetite in running any enterprise and these are inherent risks that one has to live with.

— Pritesh Vinay

So we don't see any challenge and we have already been procuring now modules locally for our ongoing projects.

— Sharad Mahendra

So we don't see as a challenge because close to 100 gigawatt of solar capacity or the module manufacturing capacity is already in place in India.

— Sharad Mahendra

So we don't see these things as a challenge for us.

— Sharad Mahendra

And since you've locked in a lot of new coal-based capacity, is that going to be a challenge in the future in terms of the coal-based capacity?

— Rajesh Majumdar

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Q&A — 14 exchanges

Hi. Thanks for the opportunity. And congratulations on building a very strong pipeline and especially completing 2 inorganic acquisitions. My first question is, of course, you have built up a very large base load portfolio now, especially with the acquisition of Mahanadi. And now we're building a new power plant in West Bengal. My question is, do you still see accretion to this base load portfolio? And my related question is, what is the status of equipment placement and land acquisition for the West Bengal coal-based power plant?

Sharad Mahendra

Can you repeat the first question, please? First question was, how do you think about accretion, further accretion to this baseload portfolio? Do you still think that you would like to do more of the coal-based power plant? See, Mohit, yes, as we are seeing the increase in the peak demand, which is between 250 gigawatt, the base load demand especially with significant increase in the intermittent renewable energy, which is solar, the peak load demand, the base load demands will definitely keep on increasing gradually. One is the demand growth and the pattern in which the new capacities which a

Yes, sir. And congratulations on hitting your targets of capacity expansion. I have two questions. The first one is again on the Salboni project. Would it be possible to share some color on the PPA? Is it a regulated PPA or is it a completely bid PPA? And if it is the latter, then what are the kind of prices that they're looking at?

Sharad Mahendra

You see, this is again the Salboni is a section (63) PPA, which was under the competitive bidding, which we have been able to secure. Okay and so I am assuming it will be under a two part tariff, fixed charges and energy charges. Yes. So Atul, the levelized 25-year tariff under two-part mechanism will be roughly Rs. 5.45 per kWh. Assuming a domestic coal supply, of course. Yes. It is fully tied up, yes. Okay and your plan of doing Rs. 1.3 trillion of CAPEX by FY '30, would you be able to share some thought process around need for equity to meet that and how much of that you can generate intern

Good evening. I have a couple of questions. The first one is if you could give us a sense of what was the total CAPEX in the previous financial? What is that you expect to spend over FY'26 and FY'27 separately if possible, in case just FY'26 would also be fine? That's my first question.

Pritesh Vinay

So Sumit, what we actually ended up incurring as a total CAPEX for fiscal '25 was about Rs. 8,000 crores. And if you remember, we had started, we were guided for Rs. 15,000 CAPEX for the year. Because of certain delays in some of the ongoing projects and because we were accelerating the inorganic growth pipeline, we calibrated it down. For fiscal 2026, we are expecting to end up spending anything between Rs. 15,000 crores to Rs. 18,000 crores in that range to complete the ongoing projects plus the pipeline of new growth projects that have started. In continuation when you mentioned that the ne

Good evening. So just wanted to get a sense on the Salboni project as to its readiness with respect to environment clearance, forest clearance?

Sharad Mahendra

These all are under process. There is already at the similar location, this one cement plant is running. So I think those all clearances are under process. So we don't see that as a challenge. Okay. Second question is on the under-construction portfolio of around 12 gigawatts. Of this, especially when it comes to renewables, what percentage has land, what percentage has CTO approved or awarded transmission capacity? Because you mentioned it has PPAs, but the other two things, like land and transmission, you can mention? So we have also talked about this in the past but just to refresh the memo

Hi, thank you so much for the opportunity. Just on the renewables capacity side, my understanding is some of the capacities were facing some land acquisition and right of way issues, especially for some of the wind projects. So are those getting resolved now and is there a timeline on some of those capacities?

Sharad Mahendra

Yes, Abhishek, as we said that we have commissioned and we have demonstrated commissioning of fresh 1.3 gigawatt of wind capacity, which faces the maximum challenge in terms of the ROW issues and implementation issues, which is almost one third of the country's capacity addition which has taken place. So we have been successfully able to overcome those challenges and the proper mechanisms are in place. And going forward also the projects which are under construction, we are at a very advanced stage of the ROW issues. And the project execution planning is done in such a way that these are withi

Yes, thank you for the opportunity. My first question actually is pertaining to wind. Aside of the execution related issues, generally wind PLF over the past few years have also been a bit depressed. So just wanted to understand your thoughts on that, like in terms of building sort of wind PLF in your assumptions, are you recalibrating that version of PLF are you assuming going forward?

Sharad Mahendra

Yes, Aniket, a very important question, is a part of DNA within our organization. See, whenever we are planning to participate in a bid and the modeling is being done for the right tariff, we have always been very conservative in terms of the assumptions, like the industry in general we have seen in case of wind has operated at P75 but for us the benchmark is P90 which gives us enough room for such kind of deviations when we have seen the last year also that the wind speeds comparatively were lesser than what was anticipated, so we take care lot of assumptions in such a way that even if these

Yes, thank you for this opportunity. Sir, my first question is more of clarification in nature, so post the acquisition of KSK Mahanadi and O2 Power is completed, so going forward, these two companies will get consolidated in our company, right, for our modeling purpose?

Pritesh Vinay

Yes. surely. I mean, KSK is already done. O2 you will see when we report the June quarter results because that transaction got consummated only in the month of April. Understood. Sir, actually my second question was regarding O2 only. So O2 in the press release I understand that we expect that by June 25 around 2.2 gigawatt of capacities expected to be operational. So can we have like a split of just 2,259 megawatts in solar, wind and hybrid? See, presently we acquired this asset operating capacity of 1,343 megawatt out of which 271 megawatt of wind and balance is all solar. And during the qua

Thank you, sir. Thanks for the opportunity. Sir, recently we were also thinking of having solar manufacturing plants. It is not included in the Strategy 3.0. Can we expect that it is dropped for now?

Sharad Mahendra

No, if you see, we have kept this in abeyance. The reason is if we see that we all are aware the way the capacity, the module capacities have got added in India, which is close to 100 gigawatt. So we did the evaluation and we found basically the objective for us to go for manufacturing was for supply chain de-risking. That scenario has changed and we don't see right now of the module availability at the right price as a challenge. So we will be watchful on that. We'll not say that we have dropped, but we have kept in abeyance. As and when we feel the need, we will be going ahead. if immediatel

Yes, thank you so much. Is it possible to share the run rate EBITDA for the renewable capacities as of March end for the renewable, I mean, ex hydro and also if possible the gross block that you invested. Run rate EBITDA or run rate revenue is also fine; however, what is comfortable?

Pritesh Vinay

So, Dhruv, we don't do that. The run rate EBITDA. But you will be able to, you know you have the…and the IR team will be able to help you. You have the details of all the RE projects you know and you have the tariffs because all of them have been won through an auction mechanism it's a public number. So you will be able to generate that. We don't give run rate EBITDA. So that will not be able to do. From a gross block point of view, you will have to wait for some time because based on the size and significant developments that have happened we should be in a position in some time to upload onc

Hello sir. I just wanted to understand the impact that you had on from the wind speeds on your acquired portfolio because as I recollect on Mytrah you were guiding around Rs. 600 crores of EBITDA and that's pretty lower now including the new acquisitions as well. And any measures that you are taking on that EBITDA now?

Sharad Mahendra

Yes, see one measure which we are taking, yes, it is slightly lower. Wind speed impact is there on those assets. When we have said we have to assume that there are assets which ranges from maybe 650 kilowatt or 850 kilowatt to maybe 2.7 gigawatt or 2 gigawatt. This is the range of the turbines which are there which all was evaluated and considered while valuing the asset. But yes, wind speeds have had an impact there. But yes, what we are now, our operations and maintenance team is working on, apart from the availability, which we have been successful in increasing the availability, which used

Yes, hi sir. Sir, my first question is on the O2 Power. So at the time of acquisition, you had mentioned that around 2.3-2.4 gigawatt should be operational by June 25. So do we have any revised timeline for that capacity?

Sharad Mahendra

Yes, Mahesh, as I said that when we acquired the portfolio, the operating capacity was 1.34 gigawatt. And the balance work, which is in progress, so by quarter end we are expecting close to 1.9 gigawatt operational capacity and about 300 megawatt of solar which is spilling over in Quarter 2. That is the only minor change which is there. We had said 2.2 gigawatt operational by end Q1 which will may spillover about small 300 megawatt to maybe in Quarter 2. My question is regarding the sourcing part. As you have mentioned that you are setting up the blade manufacturing unit, right? So given the r

Yes, thanks for the opportunity. I just want to get a sense on how our cash flows are placed to fund this Rs. 130,000 crores of CAPEX over the next five years. What my sense says is the extended KSK capacity and the Salboni will only come by FY'29 or '30. Because it has an execution time period of 4 to 5 years. And this would require a combined CAPEX of the tune of close to around 30,000 crores to 35,000 crores. So the balanced Rs. 90,000 crores which is largely targeted towards the renewable capacity generally has an executable time period of say 2-2.5 years kind of a time period. So just to

Sharad Mahendra

See, maybe I'll just say a few things on the numbers what you just said and then maybe on the cash flow Pritesh will let you know. As I said that these are all projects which is maybe 4 to 5 years period and more back-ended investment which is there and the numbers for these two KSK and Salboni West Bengal project what you said, that is a significantly higher number as I said earlier. The 1,800-megawatt capacity we have to execute in maybe by FY'30, this will be at a much-much lower cost than what the normal greenfield project is. So the cost will be significantly lower for this entire 1.6 gig

Yes, sir my question was actually on the lines of the last participant. So on the thermal PPAs, we are seeing a much shorter duration of five years now. Is that the trend going forward? And since you've locked in a lot of new coal-based capacity, is that going to be a challenge in the future in terms of the coal-based capacity?

Pritesh Vinay

So Rajesh, would beg to differ. I mean, PPAs are not for short duration. I mean, if you look at what UP did, what Maharashtra did, what West Bengal did, what Karnataka has called for, these are all 25-year bids. What I was explaining was this Vijayanagar 860 megawatt that has been tied up, that has been tied up for 5 years, with JSW Steel, not with fiscal trend is 5-years. So the long-term PPAs still exist for the larger... ? Yes, 25 years and the pumped storage is all for 40 years which are the PPAs which are coming in. Okay, that's useful. Thank you, sir.

Yes, thank you everyone for being with us today. And if anyone else has any query or any other questions, I request you to please approach our IR team. You will get a suitable reply if there are any other questions which remain unanswered today. Thank you very much.

Pritesh Vinay

Thank you. Thank you very much and good night, everyone. Good night.

Speaking time

Sharad Mahendra

Pritesh Vinay

Moderator

Sumit Kishore

Mohit Kumar

Atul Tiwari

Darsh Solanki

Nikhil Abhyankar

Rajesh Majumdar

Bharanidhar

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Opening remarks

Rajesh Majumdar

Hi. Good evening, everyone. And once again, welcome to all of you. We are proud to hold the conference call of JSW Energy Limited Q4 FY '25 and Full Year FY '25 Earnings today. We have today the Management Team represented by Mr. Sharad Mahendra – Joint Managing Director & CEO, Mr. Pritesh Vinay – Director (Finance) & CFO and Mr. Bikash Chowdhury – Head, Investor Relations & Strategic Finance. So without much ado, I shall now request Sharad sir to start with his opening comments. Thank you, sir.

Sharad Mahendra

Thank you Rajesh, And good evening, Good evening and thank you all for joining us today. It is my pleasure to share the highlights of our performance for the quarter and the year gone by. FY2025 has been a landmark year for JSW Energy—one marked by strong execution, strategic growth, and sector-leading achievements. I am proud to share that we recorded the highest annual wind capacity addition by any renewable energy company in India this year. During the year, we crossed the significant milestone of 10 GW set under Strategy 2.0 and as I speak today, JSW Energy is a 12.2 GW company, reflecting the momentum we have built across both organic and inorganic expansion. In FY2025 alone, we have added 3.6 GW of capacity strengthening the diversity and scale of our portfolio. This has resulted in company reporting the highest ever annual EBITDA of ₹ 6,115 Crore and Record highest PAT of ₹ 1,951 Crore. Before we delve into our performance, I'd like to share some sector highlights. The dynamics

Pritesh Vinay

Thank you, Sharad. A very good evening to all the participants. As Sharad mentioned, for the quarter, net generation was up by 24% YOY. And this translated to a total topline increase of 21% YOY to just shy of 3,500 crores. We reported an EBITDA of Rs. 1,512 crores which was up by 17% YOY and profit after tax for the quarter stood at Rs. 408 crores which was up by 16% YOY. For the year as a whole, we saw the EBITDA increase by 5% YOY to Rs. 6,115 crores and profit after tax for the year was up by 13% YOY at about Rs. 1,950 crores.

Moving to the balance sheet and leverage

If you look at the net debt for the quarter, at the end of the quarter post completion of the KSK acquisition, the total net debt stood at about Rs. 44,000 crores, out of which about Rs. 9,500 crores was for projects which are under capital work in progress, and almost Rs. 34,500 crores was the leverage sitting on the operating companies. Against the reported EBITDA of Rs. 6,115 crores, if you look at the pro forma EBITDA, which basically is if all these assets that we have acquired in the middle of the year were available with us for the entire part of the year, the pro forma EBITDA is about Rs. 8,860 crores. And hence, the net debt to pro forma EBITDA stands at just about 5x. The other key metric that I would like to highlight is that the net debt to equity stands at 1.6 times at the end of the financial year. The weighted average cost of debt went up by almost 18 bps sequentially and stood at about 9.05%. And from a receivables point of view, the receivables continue to be healthy.

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