JSW Energy Cuts FY25 Capex to ₹10,000 Crore, Focuses on Acquisitions

JSW Energy has lowered its capital expenditure (capex) target for FY25 to ₹10,000 crore, down from the initial estimate of ₹15,000 crore. The company is shifting its focus towards acquisitions rather than organic expansion due to sectoral challenges like connectivity issues.

Capex Spending So Far

In the first 9 months of FY25, JSW Energy has spent ₹6,200 crore on capex. “We expect to close the year with around ₹10,000 crore in total capex,” said Pritesh Vinay, Director of Finance and CFO, during the Q3 earnings call.

Shift to Inorganic Growth

The company initially planned to invest more in organic projects but faced difficulties scaling them. To maintain steady growth, JSW Energy is now focusing on acquisitions.

Investment in O2 Power Projects

JSW Energy is allocating ₹13,000-14,000 crore for 2.4 GW of under-construction renewable projects from O2 Power, which it acquired for ₹12,468 crore in December. The projects are spread across 7 states, with 2.3 GW expected to be operational by June 2025 and 2.4 GW in various development stages.

Long-Term Growth Plans

JSW Energy aims to reach 10 GW capacity by FY25 and 20 GW by FY30. Currently, its under-construction capacity stands at 7.8 GW, with necessary land and transmission infrastructure in place.

The company’s net debt stands at ₹26,500 crore as of December 2024, with a net debt-to-EBITDA ratio of 4.5x.

JSW Energy’s 1 GWh battery energy storage system (BESS) is under regulatory review. Due to recent policy changes, there might be a slight delay, but the company remains confident in its long-term potential.

About JSW Energy Ltd

JSW Energy Ltd and its subsidiaries focus mainly on generating power from their plants in Karnataka, Maharashtra, Nandyal, and Salboni. It acts as the parent company for the JSW group’s power sector. The company also has a joint venture involved in mining and an associate that manufactures turbines.

JSW Energy share price is trading at ₹505.80, up by ₹21.95 (4.54%) as of 11:46 AM on January 31. The stock opened at ₹489.50, reached a high of ₹506.50, and a low of ₹482.20. Its market capitalisation stands at ₹88.17K crore, with a P/E ratio of 46.05 and a dividend yield of 0.40%. Over the past 52 weeks, the stock has hit a high of ₹804.90 and a low of ₹452.20.

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