Power stock jumps 5% after signing Power Purchase Agreement with multiple Karnataka DISCOMs

Synopsis: JSW Energy’s subsidiary, JSW Energy (Utkal) Ltd, signed a 25-year PPA to supply 400 MW to Karnataka DISCOMs at Rs. 5.78/kWh from April 2026, cutting open capacity from 8% to 5%. 

The shares of a Mid-Cap company, specializing in the energy value chain, focusing on power generation (thermal, hydro, solar, wind), transmission, and trading, jumped upto 5 percent upon signing a Power Purchase Agreement (PPA) with multiple Karnataka DISCOMs.

With a market capitalization of Rs. 81,332.40 crores on Friday, the shares of JSW Energy Ltd rose by upto 4.5 percent, reaching a high of Rs. 482.75 per share compared to its previous closing price of Rs. 457.80 per share. 

What Happened

JSW Energy Ltd, engaged in the energy value chain, focusing on power generation (thermal, hydro, solar, wind), transmission, and trading, has announced that its subsidiary, JSW Energy (Utkal) Limited, has signed a Power Purchase Agreement (PPA) with multiple Karnataka DISCOMs.

The agreement is to supply 400 MW of power for 25 years, starting from April 1, 2026, at a tariff of Rs. 5.78 per kWh, and this agreement reduces JSW Energy’s open capacity from approximately 8% to around 5% of its operational capacity, enhancing long-term revenue visibility and reducing risk in its generation portfolio. 

With this PPA, the company’s total locked-in generation capacity now stands at 30.5 GW, which includes 13.3 GW of operational capacity, 12.4 GW under construction (thermal and renewable projects), 150 MW under hydro acquisition, and a 4.6 GW development pipeline. 

Additionally, JSW Energy has 29.4 GWh of energy storage capacity, comprising 26.4 GWh from hydro pumped storage and 3.0 GWh from battery systems. The company remains focused on achieving its strategic targets of 30 GW of generation capacity and 40 GWh of energy storage by FY 2030 while progressing toward carbon neutrality by 2050.

Financials & Others

The company’s revenue rose by 60 percent from Rs. 3,238 crore in September 2024 to Rs. 5,177 crore in September 2025. Meanwhile, Net profit declined from Rs. 877 crores to Rs. 824 crores during the same period.

The company shows modest financial performance, with a ROCE of 6.49% and a ROE of 7.41%. However, it continues to maintain a consistent dividend payout of 19.7%, indicating a commitment to returning value to shareholders despite moderate profitability.

JSW Energy Ltd is one of the leading Private sector power producers in India and part of the USD 23 billion JSW Group, which has a significant presence in sectors such as steel, energy, infrastructure, cement, sports, among others. 

It has established its presence across the value chains of the power sector with diversified assets in power generation and transmission. With strong operations, robust corporate governance and prudent capital allocation strategies, JSW Energy continues to deliver sustainable growth and create value for all stakeholders. 

Written by Sridhar J

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Power stock jumps 5% after signing Power Purchase Agreement with multiple Karnataka DISCOMs appeared first on Trade Brains.