JSW Hydro Energy Ltd: 1QFY27 EBITDA -31% YoY, we are still OW given regulated assets and attractive yield

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JSW Hydro Energy Ltd: 1QFY27 EBITDA -31% YoY, we are still OW given regulated assets and attractive yield

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JSW Hydro Energy Ltd

1QFY27 EBITDA -31% YoY, we are still OW

given regulated assets and attractive yield

Earnings Review

1QFY27 affected by weaker hydrology, higher free power 24 July 2026

JSW Hydro Energy Ltd (HBSPIN) reported a softer 1QFY27 with revenue declining 26% Global Emerging Markets | Corporate

YoY to INR2.5bn primarily due to weaker hydrology. Hydro power declined 45% YoY to Credit

1,059 MUs from 1,911 MUs in 1QFY26; consequently, utilization factor moderated to Asia | India

Energy36% from 66% a year ago (see exhibit 1 for all-India solar, wind and hydro utilization

profile by month). Additionally, the Supreme Court of India also mandated increase in free Rachna Jain, CFA

power to the Government of Himachal Pradesh to 18% (from 12%) from 1,091MW Research Analyst

Merrill Lynch (Singapore)

Karcham Wangtoo in Jul 2025. The higher free power also weighed on reported revenue +65 6678 2972

to an extent, in our view. EBITDA margin came in at 74% down from 80% a year back rachna.jain2@bofa.com

due to higher operating leverage. Combined, EBITDA declined by 31% YoY to INR1.9bn. Jing Peng

Research Analyst

Merrill Lynch (Hong Kong)

jing.peng2@bofa.comHydrology neutral, availability‑led cost-plus regulations

JSW Hydro’s both power projects - Karcham Wangtoo and 300MW Baspa II - operate Asia Pacific Credit Rsch Grp Merrill Lynch (Singapore)

under availability‑based cost‑plus frameworks allowing pass through of normative costs

(including O&M, depreciation, interest and taxes) and regulated post‑tax ROE in case

availability targets are met. Hence, normalized revenues are decoupled from hydrology

Exhibit 1: OW HBSPIN