SJVN Ltd Q1 FY27 Results

SJVN's Q1 FY27 (consolidated) is a classic capex-transition print: revenue leapt 52% YoY to ₹1,394.38 Cr while net profit stayed flat at ₹224.74 Cr (−1.3% vs ₹227.58 Cr a year ago). The consolidated result swings back to profit from the ₹117.84 Cr loss of Q4 FY26, but that QoQ turnaround is partly seasonal (management flags the seasonal nature of the business, with the monsoon quarters peak for hydro) and is not the story — the story is that a 52% revenue jump produced no profit growth. Net profit margin fell to 16.1% from 24.8% a year ago and operating margin to 48.2% from 68.3%. There are no exceptional items on either side, so the compression is structural, not one-off.

The entire topline leap came from newly commissioned capacity sitting in the subsidiaries, not the hydro parent. Consolidated fuel cost of ₹243.43 Cr now appears where it was nil a year ago — the Buxar thermal plant is generating — and the green-energy/solar subsidiaries add scale, together lifting group revenue. But those subsidiaries (SJVN Green Energy + SJVN Thermal) booked ₹644.17 Cr of revenue against a ₹21.63 Cr net loss, i.e. the new capacity is currently loss-making at start-up. Meanwhile the assets have been capitalised, so consolidated finance cost jumped 51% YoY to ₹326.14 Cr and depreciation 54% to ₹247.33 Cr — the two lines that eat the incremental gross margin. The standalone (hydro) parent, by contrast, went the other way: revenue −7.7% YoY to ₹758.83 Cr and PAT −4.5% to ₹246.88 Cr, with standalone NPM broadly stable at ~32.5%. So consolidated and standalone tell materially divergent stories — the parent hydro business was soft, and 100% of the consolidated growth (and the margin damage) is subsidiary-driven; readers seeing the standalone ₹246.88 Cr number elsewhere should not treat either as wrong.

The stock went into the print at ₹68.42, down 5.7% over the past month of trading.

This matches the street thesis rather than breaking it: brokerages (MNCL, and a Simply Wall St narrative) had modelled a multi-year ~55% revenue CAGR on capacity additions explicitly "despite margin squeeze," and that is exactly what printed. It also confirms management's own FY27 guidance from the Q4 concall — full commissioning of Buxar thermal plus solar projects — is now materialising in the numbers rather than remaining a promise. Concurrent corporate developments reinforce the expansion: the 1,000 MW Bikaner solar project was inaugurated on Jul 4, and SJVN signed 660 MW hydro PPAs with GUVNL on Jun 29; on governance, the CMD's additional charge was extended for three months (leadership continuity, not a fresh appointment). A pending item to watch is the NJHPS tariff order (unsettled since 01.04.2024), against which billing is still provisional.