SJVN Q2 FY27 Results Analysis: PAT Jumps 114%, Margins Compress on Mix Shift
SJVN Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 2,244.32 Cr (+117.39% YoY) and PAT growth of +113.50% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 30, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,244.32 Cr (+117.39% YoY) |
| PAT (Q2) | Rs. 657.39 Cr (+113.50% YoY) |
| EBITDA margin | 70.71% (-1279 bps YoY) |
| EPS (Q2) | Rs. 1.68 (+115.38% YoY) |
Quarter Snapshot
SJVN delivered consolidated revenue growth of 117.39% YoY and PAT growth of 113.50% YoY, with underlying growth of ~90% and ~46-49% respectively after stripping Rs.283.01 Cr of one-time tariff true-ups. Buxar Unit-2 and Jamui commissioning keep the 2,284 MW FY27 target on track, though margin compression from the thermal/solar mix shift, rising subsidiary losses, and a DSCR decline to 0.84x temper the picture. Capex is running at only 20% of the Rs.9,400 Cr FY27 guide, implying either an H2 acceleration or a guidance shortfall.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Hydro "likely runs behind YoY on volume" on −11% HP rainfall | Standalone underlying revenue +24.67% YoY | Contradicted |
| Thermal/consolidated revenue ahead on record demand | Consol underlying revenue +89.98% YoY | Played out |
| NJHPS tariff order (passed 25-Aug-2026) is the revenue swing item | Rs.242.59 Cr earlier-year revenue booked | Played out |
| Finance cost is the pressure line on INR depreciation | Consol finance cost +54.90% YoY | Played out |
| EBITDA margin compression continues with thermal/solar mix | Margin 70.71% vs 83.50% YoY | Played out |
| Leverage test vs "no very large increase" pledge | +Rs.1,325.13 Cr H1; D/E flat 2.25× | Partially |
| H1 capex vs Rs.9,400 Cr not verifiable pre-result | Rs.1,883.04 Cr (20.0%) — Stretch | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | What happened | Verdict |
|---|---|---|
| 2,284 MW FY27 commissioning · Q4 FY26 call | Buxar Unit-2 660 MW COD 12-Sep-2026; Jamui 75 MW COD 11-Aug-2026; ~1,549.5 MW (Dhaulasidh 69.5 MW + ~1,480 MW solar) remain by Mar-2027 | On Track |
| Capex Rs.9,400 Cr FY27 · Q4 FY26 call | H1 consol capex Rs.1,883.04 Cr = 20.0% of guide | Stretch |
| Buxar profitable in FY27 (PLF >70%) · Q4 FY26 call | STPL H1 loss Rs.(101.82) Cr; Unit-2 COD 12-Sep-2026 | Too Early |
| SGEL loss "improve substantially in '26-'27" vs FY26 Rs.257.83 Cr · Q4 FY26 call | H1 loss Rs.(80.19) Cr | On Track |
| No very large increase in loans over two years · Q2 FY26 call | Borrowings +Rs.1,325.13 Cr in H1; D/E flat at 2.25× | On Track |
Key Investment Insights
Key Positives
- Consolidated revenue grew 117.39% YoY to Rs.2,244.32 Cr; underlying growth excluding one-offs was 89.98% YoY
- Consolidated PAT to owners grew 113.50% YoY to Rs.657.39 Cr; normalized PAT grew ~46-49% YoY
- Standalone PAT grew 97.90% YoY to Rs.736.73 Cr with standalone finance cost down 21.39% YoY
- CERC tariff orders unlocked Rs.283.01 Cr of earlier-period revenue (NJHPS Rs.242.59 Cr, Buxar Rs.40.42 Cr)
- Buxar Unit-2 (660 MW) achieved COD 12-Sep-2026 and Jamui (75 MW) 11-Aug-2026, keeping the 2,284 MW FY27 commissioning target on track
- H1 consolidated CFO/PAT of 2.06x; standalone H1 FCF of +Rs.1,095.25 Cr
- SGEL H1 loss of Rs.(80.19) Cr tracking better than FY26 loss of Rs.257.83 Cr, consistent with management's improvement commitment
- Standalone hydro EBITDA margin held at 83.14% (82.57% year-ago)
Risk Factors
- Consolidated EBITDA margin compressed ~1,279 bps YoY to 70.71% on thermal/solar mix shift; reported operating margin fell from 71.39% to 61.05%
- Subsidiaries contributed Rs.(79.34) Cr to Q2 PAT; STPL H1 loss Rs.(101.82) Cr with tariff still subject to final CERC determination
- Consolidated finance cost rose 54.90% YoY to Rs.488.10 Cr; borrowings up Rs.1,325.13 Cr in H1 to Rs.33,428.15 Cr
- Quarterly consolidated DSCR fell to 0.84x from 1.74x a year ago
- Trade receivables rose 21.47% since March to Rs.2,440.16 Cr against Buxar billing-realisation history
- GoHP dispute over Luhri/Sunni/Dhaulasidh exposes Rs.864.62 Cr PP&E plus Rs.3,350.66 Cr CWIP, with GoHP indicating intent to consider taking back the projects
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.