JSW Energy has caught the attention of the brokerage firm Axis Securities. In its latest report, the brokerage has maintained a bullish stance on the stock with a target price of Rs 705. This implies an upside of nearly 37% from current levels.
The buy rating by the brokerage is driven by the factors such as operational performance of the company, capacity expansion, and investments in clean energy infrastructure.
Let’s take a look at the key reasons why the brokerage is bullish on the stock and expects a return potential of upto 37%.
Axis Securities on JSW Energy: Power output surge as new capacity lights up
According to the brokerage report, JSW Energy saw a major jump in power generation during the first quarter of FY26. Its installed capacity grew from 10.9 GW in Q4FY25 to 12.8 GW in Q1FY26. This is an increase led by the acquisition of the 1.3 GW O2 portfolio and another 550 MW in renewable energy projects that were commercialised soon after.
With KSK Mahanadi becoming fully operational during the quarter, overall generation shot up to 13,494 MUs, a 71% growth both year-on-year and quarter-on-quarter.
As Axis Securities puts it, this jump “reflects the company’s ability to quickly integrate new capacity and scale operations.”
Axis Securities on JSW Energy: Green growth plans and locked-in targets
The company is aiming to add 3-4 GW of organic capacity in FY26 alone and is “well on track” to meet that target, according to Axis Securities.
The company already has 12,983 MW under construction, with a massive 11,383 MW dedicated to renewable projects. These are expected to be commissioned within the next three years. The brokerage notes, “JSW currently has 30 GW of locked-in capacity and is well placed to achieve its 2030 goals.”
Axis Securities on JSW Energy: Bet on in-house manufacturing and storage
JSW Energy is also making key investments outside traditional power generation. According to the brokerage, the company is “in the process of establishing a battery assembly plant in Pune with a rated capacity of 5 GW per annum,” requiring an initial capital outlay of Rs 165–180 crore.
In parallel, JSW is building wind blade manufacturing facilities across western and southern India.
Axis Securities on JSW Energy: Less exposure to merchant risk, more predictable earnings
Another key reason for Axis Securities positive view is JSW Energy’s shift toward stability. “Its open thermal capacity has come down to 974 MW from 1,400 MW,” the report noted, adding that most of the remaining capacity is now domestic coal-based, making it less vulnerable to international coal price swings.
The brokerage further in its report describes the sector outlook as “cautiously positive,” given both growth opportunities and external challenges. But when it comes to JSW Energy specifically, the tone is far more upbeat. Under its Strategy 3.0 roadmap, the company expects to scale up to 30 GW of generation and 40 GWh/5 GW of energy storage by 2030.
Axis Securities on JSW Energy: Valuation
Axis values JSW Energy using a sum-of-the-parts (SOTP) approach. “We value the generation business at 12x FY27E EV/EBITDA and the energy storage business at 1x P/BV,” the report noted. It also factors in JSW Energy’s 2.9% stake in JSW Steel, adding to the overall valuation. This brings the fair value estimate to Rs 705 per share, implying a 37% upside from the current price.