SJVN profit slips as costs and finance charges outpace revenue growth
Operating margin recovered 2.63 percentage points sequentially, but interest and depreciation rose 51.01% and 54.20% year on year.
Filed 31 Jul 2026, 14:16 IST · SJVN Ltd (SJVN)
Key takeaways
- Consolidated net profit fell 1.25% year on year to Rs 224.74 cr despite revenue growth of 51.98%.
- Operating margin narrowed 17.49 percentage points year on year as expenses grew 191.29%, far faster than revenue.
- The stock's 0.88% initial rise was smaller than its 3.05% median absolute move after the last eight results.
Price around the results
Revenue growth did not reach profit
SJVN's consolidated revenue rose 51.98% year on year, but net profit slipped 1.25% to Rs 224.74 cr. Operating profit grew 19.12%, yet profit before tax fell 15.88% as interest increased 51.01% and depreciation rose 54.20%. Other income contributed 10.06% of pre-tax profit, so it was a meaningful but not primary support to earnings.
Sequential margin recovery remains partial
Revenue fell 6.82% sequentially, while expenses fell faster at 13.07%, lifting operating margin by 2.63 percentage points to 63.42%. Year on year, the opposite cost pattern drove a 17.49-percentage-point margin contraction. The margin has declined from 83.30% in Q2FY26 to 77.42% in Q3FY26 and 60.79% in Q4FY26 before this quarter's recovery.
Margin remains above the reported utility peer median
SJVN's 63.42% operating margin was 21.37 percentage points above the 42.05% median for the 13 Utilities peers that had reported the quarter. The comparison is favorable, but the year-on-year margin decline shows that the gap comes with weaker internal cost conversion than a year ago.
Lower tax rate softened the earnings decline
The tax rate fell to 24.92% from 38.20% year on year, helping tax expense decline 45.14% even as pre-tax profit fell. That tax benefit limited the drop in net profit, while higher interest and depreciation more than offset the increase in operating profit.
Market response was modest against SJVN's history
The stock rose 0.88% in the initial reaction, with a 0.60% move relative to the market and volume at 3.21 times the reference level. Across the last eight results, the stock rose after five and fell after three, with a median absolute move of 3.05%, making this reaction smaller than its usual post-results move.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,394 cr | ₹1,496 cr | -6.82% | +51.98% |
| Other income | ₹35 cr | ₹54 cr | -35.39% | -22.46% |
| Expenses | ₹510 cr | ₹587 cr | -13.07% | +191.29% |
| Operating profit | ₹884 cr | ₹910 cr | -2.79% | +19.12% |
| Operating margin (%) | 63.42% | 60.79% | — | — |
| Interest | ₹326 cr | ₹522 cr | -37.54% | +51.01% |
| Depreciation | ₹247 cr | ₹494 cr | -49.97% | +54.20% |
| Profit before tax | ₹346 cr | ₹-53 cr | — | -15.88% |
| Tax | ₹86 cr | ₹71 cr | +20.93% | -45.14% |
| Net profit | ₹225 cr | ₹-118 cr | — | -1.25% |
| EPS (₹) | ₹0.57 | ₹-0.30 | — | -1.72% |
Operating margin of 63.42% compares with a Utilities sector median of 42.05% across 13 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.88% | +0.60% |
Volume on the results session was 3.21× its 20-day average.
What to watch
- Whether operating margin holds above 63.42% after the sequential recovery.
- Whether expense growth moves closer to revenue growth after expenses rose 191.29% year on year.
- Whether interest expense moderates from its 51.01% year-on-year increase.