Shares of JSW Energy slumped 8 per cent in early trade on Tuesday despite the company reporting strong March quarter earnings growth, as investors reacted to elevated valuations and cautious brokerage commentary following the recent rally in the stock.

The stock fell to a low of ₹512 on the NSE against the previous close of ₹556.65 before recovering slightly to trade at ₹526 around 9.46 am.

The company reported a 38 per cent y-o-y rise in consolidated net profit to ₹574 crore in Q4FY26 compared with ₹415 crore a year ago. Revenue from operations climbed 39 per cent y-o-y to ₹4,851 crore from ₹3,497 crore, while EBITDA jumped 72 per cent y-o-y to ₹2,602 crore, aided by contributions from Mahanadi, O2 Power and organic capacity additions. The board also recommended a dividend of ₹2 per equity share.

Management said its scale-up strategy remains on track, with storage emerging as a key growth pillar and execution visibility staying strong. Installed capacity increased by 118 MW during the quarter. The company reiterated confidence in achieving its 30 GW target by 2030, with 13.4 GW operational, 14 GW under construction and a 4.6 GW pipeline.

Motilal Oswal retained its buy call with a target price of ₹640, valuing the business on a sum-of-the-parts basis. The brokerage said thermal assets were valued at 9x December 2027 estimated EBITDA, renewable energy at 12x FY28 estimated EBITDA and hydro assets at 2x December 2027 estimated book value. It added that the company’s stake in JSW Steel was valued at a 25 per cent discount to the current market price.

JM Financial downgraded the stock to add from buy with a revised target price of ₹627, citing expensive valuations after the recent run-up. The brokerage said adjusted revenue rose 38 per cent y-o-y to ₹4,400 crore, while adjusted profit after tax declined 36 per cent y-o-y to ₹260 crore. It noted elevated debt levels due to acquisitions and capex-heavy expansion, though leverage metrics are expected to improve gradually.

Elara Capital also revised its rating to accumulate from buy and raised the target price to ₹602 from ₹581. The brokerage said JSW Energy is well positioned for long-term growth backed by a robust capacity addition pipeline, storage expansion plans and strong internal cash generation, but moderated its stance after a 14 per cent gain in the stock over the past three months.

Published on May 12, 2026