SJVN shares surge 5% on steady Q1 revenue, strong margins

Margin gains and renewable push lift SJVN stock

Shares of SJVN climbed 5 percent to Rs 98 apiece on August 12 after the state-run hydropower producer reported stable sales and operational results for the June quarter (Q1FY26).

So far in 2025, the stock has declined 12 percent, underperforming the benchmark Nifty 50’s 2 percent rise over the same period.

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For the quarter ended June 2025, SJVN’s consolidated net profit fell 36.2 percent year-on-year to Rs 227.8 crore. This decline came despite growth in revenue and an improvement in profit margins.

Revenue from operations increased 5.4 percent to Rs 917.5 crore from Rs 870.4 crore in the same period last year, while operating profit (EBITDA) rose 11.2 percent to Rs 742.4 crore. Operating margin improved to 80.9 percent from 76.7 percent in Q1FY25, supported by higher efficiency in the generation business.

The renewable energy segment, which includes wind and solar power, contributed Rs 115.62 crore to revenue in Q1FY26, more than doubling from Rs 55.83 crore a year earlier. Revenue from power trading, however, fell to Rs 0.78 crore from Rs 1.94 crore in the corresponding quarter last year.

Other income during the quarter dropped to Rs 54.14 crore from Rs 88.10 crore in the year-ago period, with the bulk coming from bank interest and late payment surcharges from beneficiaries.

On the policy side, the Ministry of New and Renewable Energy (MNRE) has directed public sector power companies — including SJVN, NTPC, NHPC, and Solar Energy Corporation of India (SECI) — to amend their renewable energy tenders to mandate the use of Indian-made solar cells. These PSUs also act as renewable energy implementing agencies (REIAs) as part of India’s plan to achieve 500 GW of non-fossil fuel power capacity by 2030.

According to a senior MNRE official, the requirement will take effect 30 days after the ministry publishes “List II” of approved modules and manufacturers, specifically for solar cells. The list is expected next month, meaning tenders floated from October onward will be required to use Indian-made solar cells.

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