JSW Energy, a steel major, has revised its capital expenditure (capex) target for FY’25 to Rs 10,000 crore, down from its earlier estimate of Rs 15,000 crore. The company has incurred capex spending of Rs 6,200 crore in the first nine months of the fiscal and expects to close the year with around Rs 10,000 crore in total capex. The revision is due to strategic shifts towards inorganic growth through acquisitions, citing sectoral constraints and connectivity challenges.
JSW Energy has planned to complete its current batch of projects and will now focus on inorganic growth opportunities, which will help deliver a steady growth trajectory. The company has allocated Rs 13,000-14,000 crore for the 2.4 GW under-construction renewable projects of O2 Power, a Rs 12,468-crore acquisition completed in December.
The company aims to reach 10 GW capacity by FY’25 and 20 GW by FY’30, with its current under-construction capacity standing at 7.8 GW. JSW Energy’s debt remains under control, with a net debt of Rs 26,500 crore as of December 2024 and a net debt-to-EBITDA ratio of 4.5x.
The company is also working on a 1 GWh battery energy storage system (BESS), which is currently under regulatory review. Although there may be a slight delay due to recent regulatory developments, the company is confident in the long-term viability of its energy storage projects.