JSW Energy arm faces ₹1,447-cr water charge demand in Chhattisgarh, challenges order

JSW Energy Ltd on Tuesday (April 21) said its subsidiary JSW Mahanadi Power Company Ltd has received a demand of ₹1,447.34 crore from the Water Resources Division, Janjgir, Chhattisgarh, towards water charges, largely relating to the period prior to approval of its resolution plan under the Insolvency and Bankruptcy Code, 2016.

The company said the National Company Law Tribunal, Hyderabad, in its order dated February 13, 2025, had approved the resolution plan and held that all crystallised and unclaimed liabilities of the subsidiary as on the date of the order stand extinguished, and that no creditors can claim amounts other than those provided in the resolution plan.

It added that following the implementation of the resolution plan, JSW Mahanadi Power Company is regularly paying water charges.

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Based on judicial precedents under the IBC and the NCLT order, the company believes the demand is not payable and has challenged the order before the High Court of Chhattisgarh at Bilaspur.

Third quarter results

JSW Energy reported a net profit of ₹420 crore for Q3FY26, up from ₹168 crore in the year-ago period, marking a 2.5-fold increase year-on-year, driven by higher power generation and contributions from acquired assets.

The company’s revenue for Q3FY26 surged 67.4% year-on-year to ₹4,081 crore from ₹2,438 crore in Q3FY25. EBITDA grew sharply to ₹2,030 crore, compared with ₹914 crore a year earlier. Consequently, the EBITDA margin expanded to 49.7%, up from 37.5% in the corresponding quarter last year.

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For the nine months ended December 31, 2025, EBITDA grew 83% YoY to ₹8,439 crore, and PAT increased 21% YoY to ₹1,868 crore. Cash PAT for Q3FY26 rose 12% YoY to ₹570 crore, while 9MFY26 cash PAT grew 38% YoY to ₹3,660 crore.

The company added 5.2 GW of capacity over the last 12 months and 125 MW in Q3FY26, contributing to higher generation. Net generation rose 65% YoY to 11.1 BUs, with renewable energy generation up 96% YoY at 3.2 BUs and thermal generation up 55% YoY at 7.9 BUs.

Short-term volumes increased 73% YoY to 2BUs due to a shift towards domestic coal-based open capacity. Long-term PPA generation rose 63% YoY to 9.2 BUs.

Shares of JSW Energy Ltd ended at ₹546.50, up by ₹4.35, or 0.80%, on the BSE today, April 21.

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