JSW Energy faces the capex heat

JSW Energy's Ebitda rose 78% year-on-year in Q2FY26 aided by new capacity acquisitions, but interest cost soared faster.

- Manish Joshi

JSW Energy Ltd stock rose 5% on Friday to ₹482 following the announcement of raising fresh equity funds. JSW will raise nearly ₹13,000 crore equity funds through a mix of preferential allotment to promoters and qualified institutional placement (QIP).

Promoters will bring in funds from equity shares and warrants to be priced at ₹525 apiece aggregating to nearly ₹3,000 crore. Assuming that QIP also takes place at the same price, the number of total equity shares will rise by about 4% to nearly 2 billion. This fund raise should calm the nerves of JSW's investors at least for now, in the wake of a massive jump of 132% in net debt to ₹61,960 crore at Q2FY26-end from FY24 level. Prior to FY24, debt was manageable with net debt-to-Ebitda of less than 5x.