JSW Energy Ltd. - Set for Triangle Breakout with Record Q1 gains

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🔍Technical Analysis

JSW Energy remained range-bound below ₹120–₹130 from 2010–2020, briefly dipping to ₹40 post-COVID. It surged to ₹400 by October 2021, pulled back to ₹200 during the second COVID wave, then rallied past ₹400 in September 2023 and reached ₹800 by September 2024. A crash back to ₹400 followed.

In 2025, the stock formed a symmetrical triangle — a consolidation pattern featuring higher lows and lower highs. Recently, it reported solid Q1 FY26 results, boosting bullish sentiment. A breakout above the triangle signals a fresh move upward.

Entry Strategy: Only enter on a confirmed breakout above the pattern.

Targets:

Target 1: ₹600

Target 2: ₹650

Target 3: ₹700

Stop Losses:

Minor Stop: ₹480 (just below triangle)

Major Stop: ₹400 (strong demand zone)

Breach of these zones would invalidate the bullish thesis.

💰Q1 FY26 Financial Highlights (vs Q4 FY25 & Q1 FY25)
  • Total Income: ₹5,143 Cr (↑ +61% QoQ vs ₹3,189 Cr; ↑ +79% YoY vs ₹2,879 Cr)
  • Total Expenses: ₹2,355 Cr (↑ +19% QoQ vs ₹1,985 Cr; ↑ +61% YoY vs ₹1,462 Cr)
  • Operating Profit: ₹2,789 Cr (↑ +132% QoQ vs ₹1,204 Cr; ↑ +97% YoY vs ₹1,418 Cr)
  • Profit Before Tax: ₹1,015 Cr (↑ +181% QoQ vs ₹361 Cr; ↑ +45% YoY vs ₹698 Cr)
  • Profit After Tax: ₹836 Cr (↑ +101% QoQ vs ₹415 Cr; ↑ +57% YoY vs ₹534 Cr)
  • Diluted EPS: ₹4.25 (↑ +82% QoQ vs ₹2.33; ↑ +42% YoY vs ₹2.99)

    🧠Fundamental Highlights

    Q1 PAT surged ~102% QoQ and ~57% YoY owing to better generation mix and favorable power tariffs.

    Capable of handling ~215 GW of power generation capacity; demand remains stable.

    Reported ₹4,833 Cr in cash flows and reduced debt/equity from 1.9× to 1.5×.

    Interim dividend declared — ₹0.50/share.

    Expansion pipeline includes EV charging infra and solar capacities under JV.

    ✅Conclusion
    JSW Energy shows a clear technical breakout opportunity, backed by robust Q1 results and performance momentum. A confirmed breakout above ₹500 can set the stage toward ₹700. Stay alert to stops at ₹480 and ₹400 to manage risk.

    Disclaimer:lnkd.in/gJJDnvn2

Penafian

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