Power stock jumps 6% after receiving LoA for coal based thermal power plant project

During Wednesday’s trading session, the shares of one of the leading Private sector power producers in India surged nearly 6 percent on BSE, after receiving an order for a 1600 MW Thermal Power Plant from West Bengal State Electricity Distribution Company Limited.

Stock Performance

With a market cap of Rs. 86,374.7 crores, at 12:26 p.m., the shares of JSW Energy Limited were trading in the green at Rs. 494.2, up by nearly 5.2 percent, compared to its previous closing price of Rs. 469.8.

The stock delivered positive returns of nearly 0.4 percent in one year, but around 18 percent of negative returns in the last one month.

What’s the news

JSW Energy Limited announced securing a letter of award (LoA) from West Bengal State Electricity Distribution Company Limited (WBSEDCL) for the development and operation of 1,600 MW greenfield super/ultra super critical domestic coal-based thermal power plant (TPP), consisting of two 800 MW units.

According to the latest regulatory filings with the stock exchanges, this project was awarded through a competitive bidding process initiated by WBSEDCL, and the plant utilises the domestic linkage coal allocated to West Bengal.

Following this award, the company’s total locked-in generation capacity reached 30 GW, with a share of thermal capacity at 9 GW. This puts JSW Energy on track to achieve its target of 20 GW in generation capacity well ahead of the 2030 deadline.

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Previous News

10th January 2025: JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy, completed the acquisition of 125 MW of renewable energy assets from Hetero Labs Limited and Hetero Drugs Limited, housed under three SPVs.

This 125 MW portfolio includes wind projects located in Andhra Pradesh and Maharashtra, all backed by long-term power purchase agreements. 

The portfolio features a blended tariff of Rs. 5.22/KWh and an average remaining plant life of ~15 years. With this acquisition, the company’s total locked-in capacity stands at 24.7 GW, with a diverse mix of fuels and off-takers. 

The transaction values the Hetero portfolio at an enterprise valuation of ~Rs. 630 Crores, excluding net current assets and other adjustments outlined in the Share Purchase Agreements (SPAs).

Financials

JSW Energy experienced a decline in its revenue from operations, showing a year-on-year decrease of around 4 percent from Rs. 2,543 crores in Q3 FY24 to Rs. 2,439 crores in Q3 FY25.

Similarly, its net profit decreased during the same period from Rs. 232 crores to Rs. 157 crores, indicating a decline of nearly 32.3 percent YoY.

About the company

Incorporated in 1994, JSW Energy Limited is primarily engaged in the business of generation of power with principal places located at Vijayanagar (Karnataka), Ratnagiri (Maharashtra), Nandyal (Andhra Pradesh) and Salboni (West Bengal).

The company is a part of the $24 billion JSW Group and has established its presence across the value chains of the power sector with diversified assets in power generation, and transmission.

Written by Shivani Singh

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