JSW Energy Cuts FY’25 Capex to ₹10,000 Crore With Focus on Inorganic Growth

JSW Energy's capital expenditure (capex) goals for the FY'25 period are now set at ₹10,000 crore instead of the first projection of ₹15,000 crore because the company is prioritizing asset acquisitions for its inorganic growth strategy. During the Q1 to Q3 financial year, the organization spent ₹6,200 crore on capital projects.

"For the first nine months of FY’25, we have spent about ₹6,200 crore, and we expect to close the year with around ₹10,000 crore in total capex," said Pritesh Vinay, Director of Finance and CFO, JSW Energy, during the company’s Q3 earnings call.

The ₹15,000 crore capital expenditure came from pure business projects until sectoral limitations combined with connectivity problems made the company rethink its strategy. "In light of this, we have adjusted our approach by focusing more on inorganic growth opportunities, which will help us continue to deliver a steady growth trajectory at a certain compound annual growth rate (CAGR)," Vinay added.

JSW Energy dedicated funds amounting to ₹13,000-14,000 crore for finishing 2.4 GW of renewable energy projects, which O2 Power acquired in December for ₹12,468 crore.

"O2 Power's assets are spread across seven resource-rich states, with 2.3 gigawatts of capacity set to be operational by June '25 and an additional 2.4 gigawatts at various stages of development," stated JSW Energy Joint Managing Director Sharad Mahendra.

The company maintains its trajectory to reach 10 GW by FY’25 and 20 GW by FY’30, and its present under-construction capacity stands at 7.8 GW.