Higher revenue could not prevent SJVN from slipping into a Q4 loss
Sequential margin compression and sharply higher interest and depreciation outweighed the revenue increase, while the stock fell 6.03% by day 15 after the results.
Filed 02 Jun 2026, 17:02 IST · after market close · SJVN Ltd (SJVN)
Key takeaways
- SJVN's consolidated Q4FY26 net loss was Rs -117.84 cr despite revenue growth of +196.68% year on year.
- Operating margin fell 16.63 percentage points sequentially as expenses grew +140.16%, faster than revenue at +38.31%.
- Interest rose +113.42% sequentially to Rs 522.14 cr and depreciation rose +128.61% to Rs 494.39 cr, pushing pre-tax profit to Rs -53.06 cr.
Price around the results
Revenue growth did not translate into quarterly profit
In consolidated Q4FY26, revenue grew +196.68% year on year, while expenses increased +122.68%, lifting operating margin by 13.03 percentage points from Q4FY25. That operating improvement was overwhelmed below the operating line: interest rose +227.55% and depreciation increased +79.76%, leaving the company with a pre-tax loss of Rs -53.06 cr. A tax charge of Rs 71.20 cr then deepened the net loss to Rs -117.84 cr.
Sequential margin decline accelerated in Q4FY26
Revenue rose +38.31% from Q3FY26, but expenses grew +140.16%, causing operating margin to contract 16.63 percentage points. Interest increased +113.42% and depreciation +128.61%, reversing pre-tax profit from Rs 421.00 cr to Rs -53.06 cr. This was the second consecutive quarterly decline in operating margin after it fell from 83.30% in Q2FY26 to 77.42% in Q3FY26.
Operating margin remained above the utilities peer median
SJVN's operating margin of 60.79% was 25.60 percentage points above the 35.19% median for the 17 Utilities peers that had reported the quarter. The comparison is supportive at the operating level, but the quarter's loss shows that financing and depreciation costs were more consequential than the peer margin gap.
The market reaction became weaker after the initial move
The stock gained 0.64% on day zero, then fell 4.99% by day five and 6.03% by day 15 after the results. The day-zero move was smaller than the stock's 3.65% median absolute reaction after its past eight results, while the later declines were larger than that typical move.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,496 cr | ₹1,082 cr | +38.31% | +196.68% |
| Other income | ₹54 cr | ₹44 cr | +21.50% | +14.27% |
| Expenses | ₹587 cr | ₹244 cr | +140.16% | +122.68% |
| Operating profit | ₹910 cr | ₹838 cr | +8.60% | +277.64% |
| Operating margin (%) | 60.79% | 77.42% | — | — |
| Interest | ₹522 cr | ₹245 cr | +113.42% | +227.55% |
| Depreciation | ₹494 cr | ₹216 cr | +128.61% | +79.76% |
| Profit before tax | ₹-53 cr | ₹421 cr | — | +63.78% |
| Tax | ₹71 cr | ₹133 cr | -46.26% | — |
| Net profit | ₹-118 cr | ₹224 cr | — | +7.74% |
| EPS (₹) | ₹-0.30 | ₹0.57 | — | +6.25% |
Operating margin of 60.79% compares with a Utilities sector median of 35.19% across 17 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.64% | +0.83% |
| Next session | -4.94% | — |
| 5 sessions | -4.99% | -5.12% |
| 15 sessions | -6.03% | — |
| 30 sessions | -4.91% | — |
Volume on the results session was 2.16× its 20-day average.
What to watch
- Whether operating margin recovers from 60.79% after the 16.63-percentage-point sequential decline.
- Whether interest remains near Rs 522.14 cr and depreciation near Rs 494.39 cr.
- Whether pre-tax profit moves back above Rs -53.06 cr after the Q4FY26 loss.