SJVN margin recovers sequentially despite sharp year-on-year cost growth
Revenue growth outpaced expenses quarter on quarter, but higher interest and a lower tax rate remain important to the profit outcome.
Filed 30 Oct 2026, 15:13 IST · SJVN Ltd (SJVN)
Key takeaways
- Consolidated revenue rose +117.39% year on year, but expenses grew faster at +282.41%, narrowing operating margin by 12.68 percentage points.
- Quarter-on-quarter operating margin recovered 7.20 percentage points to 70.62% as revenue growth of +60.95% outpaced expense growth of +29.27%.
- Net profit rose +113.68% year on year to Rs 657.72 cr, helped by the tax rate falling 8.07 percentage points to 26.27%.
Price around the results
Revenue growth improves sequential margin
SJVN’s consolidated revenue grew +117.39% year on year and +60.95% quarter on quarter to Rs 2,244.32 cr. Sequentially, expenses increased +29.27%, well below revenue growth, lifting operating margin by 7.20 percentage points to 70.62%. Year on year, however, expenses grew +282.41%, faster than revenue, so operating margin fell 12.68 percentage points.
Interest remains a major drag on pre-tax profit
Interest expense rose +54.90% year on year and +49.66% quarter on quarter, while depreciation increased +53.74% year on year. Other income contributed 5.44% of pre-tax profit, so it was not the main driver of earnings. The tax rate fell to 26.27% from 34.34% a year earlier, which supported the +113.68% rise in net profit.
Margin recovers from the Q4FY26 trough
Operating margin has improved from 60.79% in Q4FY26 to 63.42% in Q1FY27 and 70.62% this quarter, after declining from 83.30% in Q2FY26 through Q4FY26. SJVN’s margin was 27.20 percentage points above the 43.42% median of 11 Utilities peers that had reported the same quarter.
Market reaction will need to be read against a mixed history
There is no post-result market move to assess yet. Across the last eight results, SJVN shares rose after five and fell after three, with a median absolute move of 1.62%; the recorded moves ranged from +6.29% to -5.74%, indicating that the stock’s reaction has not been uniform.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,244 cr | ₹1,394 cr | +60.95% | +117.39% |
| Other income | ₹48 cr | ₹35 cr | +38.15% | +0.10% |
| Expenses | ₹659 cr | ₹510 cr | +29.27% | +282.41% |
| Operating profit | ₹1,585 cr | ₹884 cr | +79.23% | +84.30% |
| Operating margin (%) | 70.62% | 63.42% | — | — |
| Interest | ₹488 cr | ₹326 cr | +49.66% | +54.90% |
| Depreciation | ₹263 cr | ₹247 cr | +6.25% | +53.74% |
| Profit before tax | ₹882 cr | ₹346 cr | +155.25% | +109.06% |
| Tax | ₹232 cr | ₹86 cr | +169.09% | +59.92% |
| Net profit | ₹658 cr | ₹225 cr | +192.66% | +113.68% |
| EPS (₹) | ₹1.68 | ₹0.57 | +194.74% | +115.38% |
Operating margin of 70.62% compares with a Utilities sector median of 43.42% across 11 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 70.62% after its 7.20-percentage-point sequential recovery.
- Whether interest expense continues to rise after increasing +49.66% quarter on quarter.
- Whether the tax rate remains near 26.27% after falling 8.07 percentage points year on year.