Q3 Results impact: JSW Energy, Godrej Consumer Products shares plunge 10%, India Cements up 5%

Q3 Results impact: JSW Energy, Godrej Consumer Products shares plunge 10%, India Cements up 5%

• JSW Energy and Godrej Consumer shares fell 10% after Q3 results missed estimates
• India Cements shares rose nearly 5% despite posting a Q3 net loss
• Brokerages keep 'Buy' ratings for JSW Energy, Godrej Consumer with growth potential

Did our AI summary help?

The shares of JSW Energy and Godrej Consumer Products dropped around 10 percent each on January 27 after their respective results for the October-December quarter of the ongoing financial year 2026 failed to meet analysts’ expectations.

India Cements shares meanwhile jumped nearly 5 percent on Tuesday.

JSW Energy Q3 Results:

JSW Energy shares dropped to Rs 432.8 apiece, the lowest level seen by the stock since February 19 last year. This came after the company reported a consolidated net profit of Rs 419.94 crore, marking a 150 percent year-on-year (YoY) rise from Rs 167.83 crore net profit reported in the same quarter of the previous financial year.

The firm’s revenue from operations meanwhile grew more than 67 percent YoY to Rs 4,081 76 crore during the quarter under review.

JM Financial said that the firm’s results marked an “all-round miss”, with debt and execution remaining the pain points. It noted that the company’s management expressed concerns about transmission connectivity beyond 2027, which is a potential risk for aggressive RE expansion. “The company also has 29.6GWh of locked-in energy storage capacity (26.4GWh pumped hydro, 3.2GWh BESS). We cut down our FY28 EBITDA (-17%) and PAT (-52%) estimates factoring moderation in new RE capacity additions and rising interest expenses,” it said.

The domestic brokerage however estimates gradual improvement in key performance parameters as JSW Energy progresses in its vision of 30 GW by 2030; Net Debt/EBITDA (6.2x in FY25 to 5.8x in FY30), Gross block/MW (INR 46.7mn/MW in FY25 to INR 69.3mn/MW in FY30) and RoE (6.0% in FY26E to 7.4% by FY30).

JM Financial reduced its target price for the stock to Rs 614 apiece, implying an upside potential of 28.5 percent from the previous closing price, while maintaining its ‘Buy’ rating.

Motilal Financial Services also noted that the firm’s Q3 revenue missed its estimates primarily due to weaker than expected generation at Ratnagiri, Barmer and KSK Mahanadi plants. It reiterated its ‘Buy’ view on the stock, with a target price of Rs 590 apiece, implying an upside potential of 24 percent.

Godrej Consumer Products Q3 Results:

Godrej Consumer Products shares dropped to Rs 1,117.10 apiece on Tuesday, the lowest level seen by the stock since early December last year. The company reported a consolidated net profit of Rs 498 crore, marking a marginal decline from the same period last year. The firm's revenue from operations meanwhile rose 9% YoY to Rs 4,099.12 crore.

JM Financial downgraded the stock to ‘Add’ from ‘Buy’, with a target price of Rs 1,355 apiece. This implies an upside potential of 9 percent over the stock’s previous closing price.

The domestic brokerage said that on the profitability front, gross margin may not materially change considering the shift in product mix, and improvement in EBITDA margin will be led by savings in media and other overheads. “Post the recent run-up (+12% in past 1 month) in stock price, NTM valuation of c.51x is closer to the long-term average and limits the upside,” it added.

“In India, we see GCPL logging a high single-digit revenue growth, supported by new actions (favorable season for Household Insecticides likely to aid double-digit growth). We believe India OPM will see gradual expansion, to the higher-end of the normative margin band of 24-26% by FY28E, aiding high-teens EBITDA growth over FY26-28E. Indonesia is likely to be a drag – we see gradual recovery in performance. Africa cluster is likely to see sales growth momentum slowing to a high single-digit, while EBITDA growth is likely to log at a low double digit,” said Emkay Global.

The India Cements Q3 Results:

The India Cements shares rose to Rs 452.70 apiece, after seeing some decline during the previous session following the release of its Q3 results. The Chennai-headquartered cement maker posted a standalone net loss of Rs 5.72 crore in Q3 FY26, compared to a net loss of Rs 409.38 crore a year earlier.

The firm’s revenue from operations meanwhile gained around 23.5 percent YoY to Rs 1,114.13 crore.

Motilal Oswal says India Cements is witnessing operational improvement under UltraTech's leadership with recovery in margins and steady improvement in capacity utilization. The brokerage expects the company’s revenue CAGR at 11 percent over FY25-28, led by a volume/realization CAGR of ~9%/2%.

Follow all LIVE updates from the stock markets here.