JSW Energy Shares Surge 4% Amid Commissioning of 80 MW Unit of Kutehr Hydro Project

JSW Energy shares rose 4.3% in trade on Aug 4, logging an intra-day high at ₹533.75 per share on BSE. The buying on the counter came after the company commissioned one 80 MW unit of its 240 MW Kutehr Hydro Project. JSW Energy reported a 42% YoY surge in consolidated PAT at ₹743 crore in Q1FY26 and a 78% YoY rise in total consolidated revenue to ₹5,411 crore.

JSW Energy shares rose 4.3% in trade on August 4, 2025, reaching an intra-day high of ₹533.75 per share on the BSE. The surge came following the company's successful commissioning of one 80 MW unit of its 240 MW Kutehr Hydro Project. The second unit has been synchronized with the grid and is undergoing trial runs, while the third unit is expected to be synchronized soon [1].

The commissioning of the Kutehr Hydro Project is part of JSW Energy's strategy to expand its renewable energy portfolio. The project is situated in Chamba district, Himachal Pradesh, and is backed by a long-term power purchase agreement with Haryana Power Purchase Centre (HPPC) for the entire 240 MW at a levelized ceiling tariff of ₹4.50 per kWh, valid for 35 years with provisions for extension [1].

In addition to the Kutehr Hydro Project, JSW Energy reported a 42% year-on-year (YoY) surge in its consolidated profit after tax (PAT) to ₹743 crore in the first quarter of the financial year 2025-26 (Q1FY26), up from ₹522 crore in Q1FY25. The company's total consolidated revenue also rose by 78% YoY to ₹5,411 crore in Q1FY26, from ₹3,043 crore in Q1FY25 [2].

The strong financial performance was driven by higher-than-estimated contributions from recently acquired assets—KSK Mahanadi (1.8 GW) and O2 Power (1.3 GW)—alongside higher generation from the fully contracted Vijayanagar coal plant [2].

The commissioning of the Kutehr Hydro Project and the strong Q1FY26 results have contributed to the positive sentiment surrounding JSW Energy shares. Analysts at Motilal Oswal Financial Services and JM Financial have both maintained a Buy rating on the stock, highlighting the company's strategy shift to stable cash flows and its ambitious growth targets [2].

However, analysts have also expressed caution over JSW Energy's repeated forays into non-core areas, including its plans to manufacture solar PV modules, its engagement in wind turbine blade production, and its entry into battery assembly [2].

Despite these concerns, JSW Energy remains on track to reach its targets of 30 GW of generation and 40 GWh of storage capacity by FY30, targeting a 2.7x–3x Ebitda increase over pro forma FY25 levels [2].

References:
[1] https://www.business-standard.com/markets/capital-market-news/jsw-energy-edges-higher-after-commissioning-first-unit-of-himachal-based-kutehr-hydro-plant-125080400175_1.html
[2] https://www.business-standard.com/markets/news/jsw-energy-shares-gain-4-post-q1-results-should-you-buy-sell-or-hold-125080100492_1.html