A notable development was seen among India’s state-owned power companies as SJVN Limited released its Q2 FY26 results. While the quarterly profit showed a steep decline, the company’s operating margins and forward-looking plans are drawing investor attention. Can this PSU strengthen its position in the coming months?
30% Drop in Profit, Revenue Nearly Flat
In the September quarter, SJVN’s net profit fell 30.2% to ₹308 crore, compared to ₹441 crore in the same quarter last year. Revenue remained almost steady, slipping slightly from ₹1,038 crore to ₹1,032 crore, a marginal 0.6% decline.
This indicates that power demand and production levels did not change significantly, but profit margins came under pressure.
Improvement in Operating Margin, Better Cost Control
Interestingly, the company’s EBITDA rose 3% to ₹860 crore, up from ₹836 crore last year.
Operating margin improved from 81.5% to 83.3%, showing that SJVN managed its costs more efficiently.
This suggests that while revenue remained stable, operational efficiency strengthened.
Key Metrics
| Metric | Q2 FY25 | Q2 FY26 | Change |
|---|---|---|---|
| Revenue (₹ Cr) | 1,038 | 1,032 | -0.6% |
| Net Profit (₹ Cr) | 441 | 308 | -30.2% |
| EBITDA (₹ Cr) | 836 | 860 | +3% |
| EBITDA Margin | 81.5% | 83.3% | +1.8 pts |
Plan to Raise ₹1,000 Crore Through Nathpa Jhakri Project
SJVN is preparing to raise ₹1,000 crore by securitising future revenue and return on equity (ROE) from its flagship Nathpa Jhakri Hydro Electric Project (1,500 MW).
This move is aligned with the company’s goal of meeting FY25–26 targets under the National Monetisation Pipeline (NMP).
The funds raised will be used to expand SJVN’s hydro and renewable energy projects, potentially boosting both its future cash flows and capacity.
Share Price and Market Movement
Following the results, SJVN’s stock saw a mild decline. The stock slipped 0.93% and is currently trading at ₹84.06.
On a year-to-date basis (YTD), the stock has fallen nearly 24%.
Despite volatility in the PSU sector in recent months, SJVN remains on investors’ radar due to its strong project pipeline and diversification in the energy segment.
The Bigger Picture
SJVN is a Mini Ratna company jointly owned by the Government of India and the Government of Himachal Pradesh. It primarily operates hydro, solar, and wind power projects.
The company aims to achieve an installed capacity of 25,000 MW by FY30, with a major share coming from renewable energy.
Conclusion
Although SJVN’s September quarter results show a decline in profit, the improvement in operating margins and the plan to raise funds through the Nathpa Jhakri project indicate a positive direction for financial strengthening.
SJVN continues to maintain a strong long-term outlook in the power and renewable energy sector.
