SJVN Q1 profit dips on higher finance & depreciation costs despite revenue growth

SJVN’s Q1 profit fell as higher finance and depreciation costs offset revenue gains from hydro and new solar capacity
SJVN Q1 profit dips on higher finance & depreciation costs despite revenue growth
SJVN Q1 profit dips on higher finance & depreciation costs despite revenue growth
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New Delhi: State-owned power producer SJVN Limited reported a sharp year-on-year decline in profit for the quarter ended June 30, 2025, as higher finance costs and depreciation from recently commissioned projects offset gains from stronger revenues. Consolidated net profit fell 36.3 percent year-on-year to Rs 227.58 crore in Q1 FY26 from Rs 357.09 crore a year earlier, despite revenue from operations growing 5.4 percent to Rs 917.45 crore.

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The decline was driven largely by a 51.5 percent surge in finance costs to Rs 215.97 crore and a 22.5 percent jump in depreciation and amortisation to Rs 160.40 crore, reflecting the capitalisation of new assets such as the 501 MW capacity of the Bikaner Solar Power Project, which began phased commercial operations during the quarter.

Other income dropped sharply to Rs 54.14 crore from Rs 88.10 crore in the year-ago period, further pressuring the bottom line. Total expenses climbed 15.8 percent to Rs 551.49 crore, outpacing the 1.4 percent rise in total income to Rs 971.59 crore.

The group’s total comprehensive income attributable to owners stood at Rs 224.86 crore, down 36.8 percent from Rs 355.95 crore a year earlier. Net profit margin contracted to 24.81 percent from 41.03 percent in Q1 FY25, while operating margin fell to 65.26 percent from 77.26 percent.

On a sequential basis, the company swung back into profit from a loss of Rs 127.60 crore in Q4 FY25, aided by seasonally stronger hydro generation and incremental solar output.

Standalone performance

On a standalone basis, SJVN’s net profit dropped 21 percent year-on-year to Rs 258.51 crore, even as revenue from operations remained broadly flat at Rs 822.44 crore. Other income rose 19.4 percent to Rs 84.95 crore, but higher finance costs (Rs 182.63 crore vs Rs 148.91 crore) and depreciation charges (Rs 113.65 crore vs Rs 114.44 crore) kept profit under pressure.

Total expenses were almost unchanged at Rs 464.06 crore, but the net profit margin narrowed to 31.43 percent from 39.33 percent in the same quarter last year. The operating margin also slipped to 72.37 percent from 76.85 percent.

Sequentially, standalone net profit surged more than eightfold from Rs 30.72 crore in Q4 FY25, reflecting seasonal generation patterns and lower one-off costs.

Balance sheet and leverage

SJVN’s consolidated debt–equity ratio rose to 1.95 at June-end from 1.50 a year ago, underscoring its accelerated capacity expansion, particularly in renewables. Standalone leverage remained much lower at 0.72, but also slightly higher than 0.67 last year.

Net worth stood at Rs 14,402.51 crore on a consolidated basis, marginally lower than Rs 14,426.80 crore a year earlier, while consolidated paid-up debt capital jumped 30 percent year-on-year to Rs 28,125.32 crore.

SJVN Q1 profit dips on higher finance & depreciation costs despite revenue growth
SJVN profit declines 36% to Rs 228 crore in Q1

Operational context

The hydro portfolio remained the mainstay, contributing Rs 801.05 crore to consolidated revenue, nearly flat from last year. Renewable energy revenue nearly doubled to Rs 115.62 crore, driven by the Bikaner solar project. Trading income dropped to just Rs 0.78 crore from Rs 19.39 crore.

The company is operating under provisional tariffs for the 2024–29 control period as per Central Electricity Regulatory Commission regulations, pending final tariff orders.

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