JSW Energy shares get a downgrade post Q1 earnings; here's what MOFSL says 

Shares of JSW Energy have received a downgrade from Motilal Oswal Financial Services after the firm announced its Q1 earnings. The brokerage cited a 17% rally in the stock in the last four months behind its downgrade and added that valuation comfort has reduced as the stock is trading at 12 times FY28E EV/EBITDA. 

It pared its FY28 EBITDA estimates by 9%, primarily reflecting a slower renewable commissioning pace (4GW) in FY28 than previously assumed. 

"Our revised TP of Rs 550 implies a 2% downside, prompting us to downgrade the stock to Neutral. While the company's long-term growth outlook remains compelling, we believe the current valuation adequately reflects these strengths," said MOFSL.

However, the brokerage said it continues to view JSW Energy positively due to its robust earnings growth trajectory, strong capacity expansion plan (from 14.5GW currently to 30GW by 2030), and superior execution capabilities compared to peers. 

Meanwhile, in the previous session, the shares of power company engaged in power generation, transmission and trading, closed on a flat note at Rs 561.75. Market cap of the firm stood at Rs 1.03 lakh crore.

Net profit fell 36% to Rs 532 crore in Q1 FY27 against Rs 835 crore in the same quarter of the last fiscal. Revenue during the first quarter of 2026-27 rose marginally to Rs 5,437 crore compared with Rs 5,411 crore a year earlier.
 
Led by fund-raising, net debt fell to Rs 61,322 crore as of June 30, 2026. 
 
The company said it logged a 5 per cent fall in power sales to 12.9 billion units (BUs). Thermal generation fell 6 per cent to 8 BUs, primarily due to lower generation at its Mahanadi plant. Renewable energy generation was also fell 3 per cent to 4.8 BUs, driven by lower generation at hydro plants owing to weaker hydrology. Net long-term PPA sales declined by 4 per cent to 11.2 BUs, while short-term thermal sales were flat at 1.6 BUs.