JSW Energy Q4 preview: Margins & expansion in focus

Over the past four quarters, JSW Energy has reported a mixed financial performance, with steady revenues but fluctuating profit growth and margins. In Q4 FY24 (Jan-Mar 2024), the company posted revenue of Rs 2,756 crore, up about 3 per cent year-on-year (YoY), while EBITDA jumped 47 per cent to Rs 1,292 crore. This expanded the EBITDA margin to 45 per cent from 31 per cent a year earlier. Consolidated net profit grew 22 per cent YoY to Rs 345 crore, supported by strong thermal generation and higher merchant power sales. The momentum continued in Q1 FY25 (Apr-Jun 2024), where revenue rose marginally to Rs 3,043 crore. However, profit after tax (PAT) surged 80 per cent YoY to Rs 522 crore, driven by better margins in thermal power and contributions from new renewable capacity. EBITDA grew 21 per cent YoY to Rs 1,581 crore, with margins improving to around 52 per cent, aided by lower coal costs and enhanced renewable output. In Q2 FY25 (Jul-Sep 2024), revenue remained flat at Rs 3,237.7 crore, and PAT was largely unchanged at Rs 853 crore. EBITDA declined by nearly 5 per cent YoY to Rs 1,907 crore, as lower merchant tariffs and tariff resets in hydro assets trimmed profitability. Despite adding wind capacity and benefiting from improved hydrology, margins faced some pressure. Net debt rose to Rs 24,875 crore during the quarter, reflecting JSW Energy's ongoing capex cycle. Q3 FY25 (Oct-Dec 2024) saw further moderation. Revenue came in at Rs 2,640 crore, down slightly by 1 per cent YoY. EBITDA fell 9 per cent YoY to Rs 1,115 crore, and margins slipped to 42 per cent from 46 per cent in the previous year. PAT dropped over 27 per cent YoY to around Rs 160-170 crore, impacted by higher interest and depreciation from newly capitalised projects. Net debt increased to Rs 26,448 crore, pushing the debt-to-equity ratio to 1.0× and net debt-to-EBITDA to 4.5×, up from around 0.9× earlier in the year. Here's a snapshot of JSW Energy's financial performance across the last four quarters: Quarter Revenue (Rs Cr) EBITDA (Rs Cr) EBITDA Margin ( per cent) PAT (Rs Cr) Net Debt (Rs Cr)