Sajjan Jindal
Chairman a Managing Director
Dear Shareholders,
I hope that all of you and
your loved ones are keeping well and that this message finds you in good health. I begin
with a salute and gratitude to the unparalleled bravery and courage shown by our armed
forces during Operation Sindoor. Their unwavering commitment to upholding the sovereignty
of the nation stands as a profound testament to the indomitable spirit of our defence
personnel. Their heroic actions reinforce our collective resolve to maintain national
unity and reflect the nation's
uncompromising stance against any threat to its security and territorial integrity.
Guided by humility and a
commitment towards our stakeholders I share that FY 2025 has been a pivotal year for JSW
Energy, one that marks the successful delivery of the strategic commitments we made in
prior years. This period has not only reinforced our long-term vision but also
demonstrated the tangible outcomes of our disciplined capital allocation and best-inclass
execution.
For the year, amid global
turbulence and a slow momentum in domestic economy in the first half due to lower fiscal
impulse and tight liquidity, the company has performed strongly across all key parameters,
reflecting the resilience of our business model and the effectiveness of our growth
strategy.
As we look ahead, I remain
confident in the company's ability to
build on this momentum and continue delivering long-term, sustainable value to all our
stakeholders.
In FY 2025, your company marks
the first major milestone of surpassing 10 GW installed capacity - effectively doubling in
size over the past 3 years - further strengthening its position as a leading contributor
to India's energy security
and the transition toward sustainable power.
While the numbers speak
volumes marking a year of record-breaking capacity addition, exceptional project wins, and
historic profitability, the deeper narrative lies in the unwavering strength, commitment
and resilience that made it possible. These milestones are a testament to superior
execution capabilities, nimble footedness, and prudent capital allocation strategies.
Our total installed capacity
at the end of the year stands at 10.8 GW across thermal, hydro, solar and wind which grew
by record 3.6 GW during the year, reflecting a 50% year-on-year growth. In addition, with
the completion of 02 Power acquisition on 9th April 2025, we have added incremental 1.3 GW
to our year-end installed capacity.
In parallel, we have also made
significant strides in building a robust pipeline for future growth. I am pleased to share
that currently the company is constructing 12.5 GW of generation projects and have secured
additional bids of 3.4 GW through the auction processes, resulting in a total locked in
capacity of 30 GW. We have also secured offtake contracts for a total of 29.3 GWh of
energy storage capacity across battery energy storage system and pumped hydro storage
projects, an essential enabler for the effective integration of intermittent renewable
energy and supplying dispatchable power to the grid.
Promises Delivered
JSW Energy has successfully
delivered on its first milestone by surpassing 10 GW of installed power generation
capacity in FY 2025, a pivotal point in its growth journey. This achievement is the result
of a balanced approach combining robust organic growth with strategic inorganic
expansions. During the year, the company has notably added the highest wind power capacity
in the country (1.3 GW) which represents a third of the nation's wind capacity
addition, reinforcing our commitment to renewable energy and displaying our execution
ability.
Your company is also an early
mover in the energy storage business - having a presence in both the battery energy
storage system and the pumped hydro storage projects. With 29.3 GWh of locked-in energy
storage offtake contracts, your company is constructing one of the largest pumped hydro
storage projects in the country with a capacity of 12 GWh in Maharashtra. With tailwinds
of underlying power demand growth, a robust underconstruction capacity and a disciplined
capital deployment, we have accelerated FY 2030 target to 30 GW under Strategy 3.0, from
20 GW previously. We stand by our goal of achieving carbon neutrality (Net Zero) by 2050.
Business Environment
India has showcased strong
economic resilience amid global uncertainties, achieving a robust 6.5% GDP growth in FY
2025, driven by domestic demand, infrastructure investment, and a dynamic financial
sector. A youthful workforce and strategic government initiatives in infrastructure,
digitalisation, and manufacturing underpin a clear trajectory towards a USD 10 trillion
economy. However, rising global tariff volatility and escalating geopolitical tensions,
particularly the ongoing conflicts in Europe and the Middle East, underscore the urgent
need for India to strengthen its energy security through reduced import dependence.
Expanding renewable energy capacity, enhancing operational efficiency, and modernising
grid infrastructure are pivotal to securing India's energy future,
reducing external dependencies, and accelerating the shift toward a sustainable,
low-carbon economy. These efforts are being supported by progressive government policies
that foster innovation, attract investment, and create an enabling environment for growth.
Twin Imperative of Energy
Security and Energy Transition
India is strategically
balancing the twin imperatives of energy security and green transition amid rising demand
and global climate commitments. With energy demand expected to grow at mid-single digits
through 2030, there is an urgency to secure stable and affordable energy while gradually
reducing reliance on energy imports namely oil and gas. India has set an ambitious target
of achieving 500 GW of renewable energy capacity by 2030, a substantial leap from around
220 GW today, signalling a strong commitment to decarbonisation. In FY 2025, the country
made significant strides in this direction by adding a record 28.7 GW of renewable energy
capacity, the highest ever in a single fiscal, compared to 18.5 GW in FY 2024 and 15.3 GW
in FY 2023. This momentum is expected to continue, with 30-35 GW of additions projected
for FY 2026, supported by a robust bidding pipeline of 50 GW annually.
However, the rapid pace of
expansion has brought challenges related to transmission connectivity and grid integration
to the forefront. The nation is working towards addressing these, including an approved
investment of 13,600 crore in HVDC corridor in Rajasthan and Karnataka. While these
solutions are underway, your company is mitigating risk by diversifying its connectivity
strategies, including aligning projects in states where STU connectivity is available.
Our nation requires a
diversified energy mix, where renewables are rapidly scaled up alongside responsible
expansion in thermal power to ensure grid reliability. Investments in grid modernisation,
energy storage, and emerging technologies like green hydrogen are critical enablers to
strike a balance between energy security and energy transition.
JSW Energy is strategically
investing in thermal power assets to ensure energy security by providing firm and reliable
power amidst a renewable energy-driven growth landscape.
We are committed to supporting
this reliability alongside our ambitious goal of achieving net zero emissions by 2050,
integrating cleaner technologies, and improving operational efficiencies to align thermal
generation with long-term sustainability goals.
Firm Power for a Resilient
Economy
Thermal power will continue to
play a critical role in India's energy mix,
meeting baseload demand, insulating the country against geopolitical disruptions and
ensuring energy security for a growing economy. While the country's reliance on
fossil fuels is gradually declining, the need for firm, reliable power is increasing to
support both economic expansion and the ongoing energy transition. India's baseload demand
has now exceeded 220 GW and is expected to grow steadily, with power demand expected to
rise at 5-6% annually through 2030. To keep pace, the country will require 13 -15 GW of
additional firm capacity each year.
Alongside this, the
decarbonisation goals of commercial and industrial consumers and investment for green
hydrogen and its derivatives would necessitate additional firm power requirements. As per
latest estimates, our country requires more than 80 GW of thermal capacity addition till
2032 to effectively address a growing baseload demand amid energy transition. Given the
intermittency of solar and wind, thermal power remains essential for balancing the grid
till storage solutions like battery energy storage system and pumped hydro storage are
fully deployed. As a responsible energy provider, your company remains committed to India's dual goals of
energy security and sustainable growth, adopting a balanced strategy that combines prudent
thermal expansion with aggressive renewable capacity build-out and parallelly pioneering
energy storage development.
Powering Ambition Through
Growth Capital
Seizing the momentum from a
fast- evolving energy landscape and a visibility of near-term, returns-accretive growth
opportunities, in April 2024, your company successfully completed a Qualified
Institutional Placement, raising Rs. 5,000 crore of equity capital marking a significant
milestone in the company's growth journey.
This marked the company's first equity
raise since our listing in 2010 and stood as one of the largest equity raise in the Indian
power sector over the past decade. The issue was subscribed by more than 3.2 times and
received an overwhelming response from leading global and domestic institutional
investors, reflecting strong market confidence in JSW Energy's vision and
positioning in India's evolving power
landscape.
This growth capital has
enabled your company to successfully undertake strategic inorganic expansion across both
conventional and renewable power, while simultaneously developing a strong
under-construction portfolio of 12.5 GW that is poised to be commissioned over the next
2-3 years.
Financial Performance
For FY 2025, our total revenue
increased 6% year-on-year to Rs. 12,369 crore. We recorded the highest-ever annual EBITDA
of Rs. 6,115 crore and a record PAT of Rs. 1,951 crore. Cash PAT generation during the
year stood at Rs. 3,399 crore, yielding a healthy 16% cash returns on adjusted net worth.
Since unveiling our 10-year growth roadmap at the end of FY 2021, our installed capacity
has grown at a CAGR of 24%, in turn driving a 18% CAGR in EBITDA and 25% CAGR in PAT.
The Board has recommended a
dividend of Rs. 2.0 per share for FY 2025.
Liquidity continues to be
strong with cash balances at Rs. 5,660 crore as of 31st March, 2025. JSW Energy continues
to have a strong balance sheet and enjoys one of the highest credit ratings in the private
sector, which gives it the headroom to pursue value-accretive growth opportunities. Our
consolidated Net Worth and Net Debt stand at Rs. 27,362 crore and Rs. 43,962 crore,
respectively-resulting in a Net Debt-to-Equity ratio of 1.6x, while Net Debt-to- EBITDA
ratio stands at 5.0x on proforma basis.
Inorganic Growth:
Strengthening Our Energy Portfolio
As part of our strategic focus
on value-accretive growth, your company has undertaken two landmark transactions during
the year - to acquire KSK Mahanadi Power and 02 Power, a RE platform. Both these
acquisitions are EBITDA-accretive from the outset, immediately enhancing the company's earnings
profile. These are high-quality, large-scale assets, backed by firm offtake agreements,
providing long-term revenue visibility and stability.
The KSK Mahanadi thermal asset
strengthens JSW Energy's baseload
capacity through longterm power purchase agreements, while the O2 Power portfolio
significantly scales up the company's renewable
energy footprint with contracted clean energy assets. Together, these additions generate
strong free cash flows from inception, reinforcing JSW Energy's financial
resilience and providing the liquidity required to pursue the growth strategy. Notably,
the total enterprise value for the KSK Mahanadi acquisition, completed through the NCLT
resolution process, stood at ~ Rs. 16,000 crore. Additionally, the acquisition of the 02
Power platform, which was concluded in early April 2025, is valued at ~ Rs. 12,500 crore.
Strategy 3.0: Revised
Growth Roadmap for 2030
Looking ahead, we have laid
out a bold and transformative roadmap under Strategy 3.0, which will define our growth
over the second half of this decade. Building on the strong foundation, we are now gearing
up to triple our generation capacity to 30 GW and develop 40 GWh of energy storage by FY
2030. This vision is a natural progression of our journey and reflects our conviction in
India's evolving energy
landscape.
To deliver this growth, we are
planning a cumulative capital outlay of Rs. 1.3 trillion which is expected to result in an
FY 2030 EBITDA run rate nearly three times that of proforma FY 2025 levels. Even as we
expand, we remain committed to maintaining a prudent capital structure and superior credit
ratings, targeting a Net Debt to EBITDA ratio of around 5.0x by FY 2030.
By combining execution
excellence, a de-risked growth model, and disciplined capital allocation, your company is
well-positioned to evolve into an integrated energy solutions provider for a cleaner, more
resilient future.
ESG priorities
0ur ESG strategy embodies our
commitment to turning purpose into meaningful action. Every day, we strive to find
innovative solutions that not only transform the world but also strengthen our resilience.
With a sense of urgency, we are dedicated to conserving our planet's finite
resources and leading the charge against climate change. This year, we have been assigned
'A' rating by MSCI
for ESG and continue to be in the 'Leadership Band (A-)' by the CDP
Climate Change program - one of the highest in the Indian power sector. We remain
committed to transparently measuring our progress and sharing our performance openly.
Beyond environmental stewardship, we actively promote equity by partnering with
communities most affected by climate change, fostering shared opportunities and working
towards a more just and inclusive future.
In Conclusion
FY 2025 was a transformative
year for JSW Energy, marked by the achievement of a key strategic milestone of crossing 10
GW of installed capacity. The promise of 2025 was delivered, supported by a well-balanced
mix of organic growth and strategic acquisitions. 0ur growth strategy remains firmly
anchored in identifying and capitalising on value-accretive opportunities across the
energy sector.
We are committed to enhancing
energy security and accelerating India's energy
transition, all while maintaining a robust and healthy balance sheet. This disciplined and
forward-looking approach positions JSW Energy as a resilient, agile, responsible and
returns-focussed organisation. We are well- equipped to harness emerging opportunities and
sustain our current growth trajectory. Together, we are building a future-ready enterprise
capable of delivering integrated energy solutions across the entire value chain.
I extend my heartfelt
gratitude to our dedicated employees, valued partners, and the families of JSW Energy,
whose unwavering commitment is turning our strategic vision into reality. I also sincerely
thank our stakeholders for their continued trust, support, and encouragement. The road
ahead is filled with promise, and together, we are poised to shape a sustainable and
prosperous energy future.
I am positive that the best is
yet to come.
Sincerely,
Sajjan Jindal
Chairman S Managing Director