SJVN (Satluj Jal Vidyut Nigam) is engaged in the business of Electricity generation. The company is also engaged in the business of providing consultancy for hydro-power projects. SJVN was declared Navaratna status in Aug,24.
Q2 FY26 Earnings Results
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Consolidated Revenue: ₹1,032.40 crore, up 0.6% YoY and 13% QoQ.
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Standalone Revenue: ₹942.03 crore, down from ₹994.51 crore in Q2 FY25.
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Consolidated Profit After Tax (PAT): ₹307.91 crore, down 30.2% YoY from ₹441.14 crore in Q2 FY25.
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Standalone PAT: ₹341.50 crore, down from ₹463.94 crore in Q2 FY25.
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Operating Profit (excluding other income): ₹742.33 crore, with operating margin of 80.91% up from 76.69% in Q2 FY25.
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Interest Expense: ₹215.97 crore, up 51.43% YoY due to debt-funded capacity expansion.
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Net profit margin compressed to 27.67% from 43.46% a year ago.
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Depreciation increased to ₹160.40 crore from ₹130.89 crore YoY.
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Total debt rose to ₹26,220 crore as of March 2025 from ₹19,689.54 crore a year earlier.
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Capital expenditure outlook for FY26 is approximately ₹7,500 crore including around ₹3,600 crore by September 2025.
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Employee costs controlled at ₹74.83 crore, down from ₹80.16 crore YoY.
Management Commentary & Strategic Insights
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Management emphasized operational excellence and strong hydroelectric generation during monsoon season driving robust operating margins.
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The sharp decline in net profit is attributed mainly to rising finance costs and depreciation from aggressive capacity expansion.
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Capacity additions have been slower to translate into EBITDA growth due to large capital base and debt burden.
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Management highlighted the importance of commissioning new projects and improving returns to address capital inefficiency.
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The company is confident about future profitability recovery as new projects come online and debt servicing costs stabilize.
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Continuous monitoring and measures are underway to control costs and improve capital efficiency.
Q1 FY26 Earnings Results
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Consolidated Revenue: ₹917.45 crore, up 5.4% YoY from ₹870.37 crore in Q1 FY25.
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PAT: ₹227.77 crore, down 36.21% YoY from ₹357.09 crore.
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Operating Profit: ₹667.49 crore with improved margin of 80.9% from 76.7% YoY.
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Profit decline linked to higher deferred tax and other expenses.
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Company maintained strong generation volumes and effective cost control but faced financial headwinds.
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Management remains focused on reducing costs, expanding capacity, and managing debt.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.