SJVN Q1 FY27 Results (NSE: SJVN)
Signal: Margin pressure
The read
Q1FY27 shows a structural shift: SJVN is transforming from a pure hydro utility into a diversified thermal+solar+hydro group. Consolidated revenue hit a record ₹1,394 Cr (+52% YoY) on the back of new thermal plant fuel-cost pass-through and Bikaner solar (1,000 MW), but the blended EBITDA margin dropped 240bps to 65.9% as low-margin thermal/solar mix dilutes high-margin hydro. PAT flat (-1.2%) as finance cost surged 51% YoY to ₹326 Cr. The standalone hydro business (-7.7% YoY revenue) had a seasonally weak quarter. Crucially, both auditor 'Emphasis of Matter' items on pending NJHPS tariff order (since Mar'24) and Devasari project hold remain unresolved. The growth story is on track (commissionings), but the cost of that growth — debt service, margin compression, receivable days stretching — bears watching.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,394.38 Cr | 52.0% | -69.2% |
| EBIT | ₹671.34 Cr | 5.5% | |
| Net profit | ₹224.93 Cr | -1.2% | |
| EPS | ₹0.57 | -1.7% | |
| EBIT margin | 65.9% |
P&L walk
Revenue surged 52% YoY to ₹1,394 Cr (highest Q1 on record), driven by fuel-cost pass-through from new thermal plant (₹243 Cr fuel cost; nil prior year) and Bikaner solar (1,000 MW) commissioning; however EBITDA margin compressed 240bps to 65.9% as the high-margin hydro base blended with lower-margin thermal/solar. PAT flat (-1.2% YoY) entirely because finance cost jumped +51% YoY to ₹326 Cr, eroding the EBIT growth of +5.5%. Earnings quality is clean (other income 2.4% of PBT).
Key positives
- Consolidated revenue at ₹1,394 Cr, +52% YoY, highest ever Q1 — driven by thermal plant (₹243 Cr fuel cost) and Bikaner solar (1,000 MW) commissioning.
- Operating margin (consolidated OPM) improved to 48.17% from 31.35% in Q4FY26 (sequential recovery), despite YoY compression.
- Standalone finance cost fell 22.7% YoY to ₹141 Cr, reflecting lower standalone debt and better debt management.
- Both depreciation-to-capex and PAT-to-EPS cross-checks clean — no red flags on capitalisation or equity dilution.
Key concerns
- Consolidated PAT flat at ₹225 Cr (-1.2% YoY) despite 52% revenue growth — finance cost +51% YoY to ₹326 Cr absorbing operating gains.
- Consolidated EBITDA margin contracted 240bps YoY to 65.9% — dilution from lower-margin thermal/solar mix.
- Standalone hydro revenue -7.7% YoY — Q1 seasonal weakness, but OPM fell 792bps to 68.19%.
- Debtors turnover deteriorated to 2.78x (annualised) from 3.63x a year ago — receivable days stretching; monitor discom payment cycle.
- Auditor 'Emphasis of Matter' on pending NJHPS tariff order (since Mar'24) — provisional billing continues.
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