JSW Energy Ltd: Underweight: Weak PLFs and high fixed costs lead to weak results

Research evidence excerpt

JSW Energy Ltd: Underweight: Weak PLFs and high fixed costs lead to weak results

Atul Tiwari AC Asia Pacific Equity Research

(91-22) 6157-3582 23 July 2026 J P M O R G A N

atul.tiwari@jpmorgan.com

Salboni — Execution commenced, supply chain de-risked: The Salboni Phase 1 project

(2x800 MW) has received all key clearances — 100% land secured, environmental clearance

obtained, and construction mobilized. The turbine-generator order was placed with Toshiba

JSW Power Systems (TJPS), with Chennai facility capacity at 2x800 MW annually. The

boiler will come from the GE Durgapur facility being acquired (expected closure this

quarter), which has a nameplate capacity of 1.1 GW, expandable to 1.6 GW with

debottlenecking. Two 25-year PPAs of 1,600 MW each are signed with West Bengal discoms,

with COD in phases over FY30-32. Fuel is secured under the SHAKTI policy. The vertical

integration strategy via an increased TJPS stake and the GE boiler acquisition appears to fully

de-risk equipment supply.

PPAs for pumped storage projects: Two PSP projects are under construction — Bhavali

(1,500 MW/12 GWh) with MSEDCL at Rs8.46mn/MW/annum (SCOD FY30) and

Kandhuara (1,680 MW/12 GWh) with UPPCL at Rs7.72 mn/MW/annum (SCOD FY31).

Bhavali received EC and Forest Stage-1 clearance in June 2026; civil and electromechanical

orders were awarded to L&T and Voith, respectively. Kandhuara is relatively early-stage —

EAC recommendation secured and forest clearance application submitted, with full

execution readiness expected by 4QFY27. The implied capex is approximately Rs50mn/

MW. A third site (~9 GWh) is being readied for future SECI tenders.

RE PLFs disappointing; curtailment remains a concern: Solar PLFs were flat y/y, at 21%,

while wind PLFs softened from 30% to 27% y/y.