Motilal Oswal has issued a BUY rating on JSW Energy with a target price of ₹657, representing a 34% upside potential. The recommendation follows the brokerage's plant visit to the company's Vijaynagar facility on January 7-8, 2026, where the company showcased its green hydrogen and floating solar projects.

Operational Capacity Expansion

JSW Energy has demonstrated strong execution capabilities by significantly expanding its operational footprint. The company's capacity growth highlights its robust project implementation:

Green Hydrogen and Solar Initiatives

The company has commissioned two significant renewable energy projects at its Vijaynagar facility. The 5,000 m³/hour green hydrogen plant was commissioned in November 2025 for captive consumption by JSW Group's adjacent steel plant. However, green hydrogen economics remain challenging, with current costs hovering around USD 3.5-4/Kg compared to the USD 2-2.5/Kg level required for mass-scale commercialization.

The 20MW floating solar plant, commissioned in September 2025, represents a novel approach that eliminates land acquisition requirements and provides natural cooling benefits. This cooling effect boosts generation by slowing down module degradation, though internal rates of return remain broadly similar to ground-mounted solar plants.

Project Pipeline and Financial Stability

JSW Energy's strategic positioning is strengthened by its substantial project pipeline and improved cash flow stability:

The significant reduction in merchant exposure to approximately 5% of the installed base substantially enhances cash flow stability, while the majority of the pipeline being secured under long-term power purchase agreements provides revenue visibility.

Financial Projections

Motilal Oswal's positive outlook is driven by the company's strong, PPA-backed renewable pipeline. The brokerage has projected robust financial growth over the forecast period:

These projections reflect the expected benefits from the company's expanding renewable energy portfolio and improved operational efficiency. The combination of capacity expansion, reduced merchant exposure, and a substantial secured pipeline positions JSW Energy favorably for sustained growth in the renewable energy sector.

JSW Energy Limited has informed stock exchanges about a significant development in ongoing litigation involving Maharashtra State Electricity Distribution Company Limited (MSEDCL). The company disclosed that MSEDCL has filed an appeal against a favorable regulatory order, escalating the dispute to the appellate level.

Background of the Dispute

The current development stems from a Final Combined Order dated December 24, 2025, passed by the Maharashtra Electricity Regulatory Commission (MERC). This order had rejected MSEDCL's petition seeking to quash invoices raised by JSW Energy and simultaneously allowed the company's petition, marking a favorable outcome for the power company.

Latest Development

On January 9, 2026, JSW Energy was served with a copy of the appeal filed by MSEDCL against the MERC order. The appeal has been filed before the Appellate Tribunal for Electricity, indicating that the dispute will now be adjudicated at the appellate level.

Regulatory Compliance

The disclosure has been made under Regulation 30(4) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates companies to inform exchanges about material litigation developments. This ensures transparency for investors regarding legal proceedings that could potentially impact the company's operations or financial position.

Implications

The appeal by MSEDCL means that the dispute, which JSW Energy had previously won at the MERC level, will now undergo review by the Appellate Tribunal for Electricity. The appellate proceedings will determine whether the MERC's decision to reject MSEDCL's petition and allow JSW Energy's petition will be upheld or modified.

The company had initially disclosed the favorable MERC order on December 25, 2025, and has now updated stakeholders about this subsequent legal development as part of its ongoing disclosure obligations regarding material litigation.