This article first appeared on GuruFocus .
Release Date: November 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
SJVN Ltd ( BOM:533206 ) successfully synchronized Unit 1 of the 1,320 MW Buxar Thermal Power project with the National Grid and is set to declare its commercial operation date soon.
-
The company achieved a significant milestone with the inauguration of a 200 MW solar power project in Gujarat, expected to generate 505 million units in its first year.
-
SJVN Ltd ( BOM:533206 ) has increased its total installed capacity to 3,146.52 MW, with plans to add another 320 MW soon, bringing the total to approximately 3,500 MW.
-
The company has signed a Power Purchase Agreement (PPA) with Uttar Pradesh Power Corporation Limited for multiple projects, ensuring a stable revenue stream.
-
SJVN Ltd ( BOM:533206 ) received the prestigious Scoop Eminence Award in HR Management, highlighting its commitment to progressive employee-centric practices.
Negative Points
-
Revenue for the quarter did not increase proportionally with the increase in generation capacity, partly due to plant availability issues caused by floods.
-
There was a significant increase in depreciation and finance costs due to new projects coming online, impacting overall profitability.
-
The company faces challenges with grid connectivity and transmission line issues, delaying the commissioning of new solar projects.
-
SJVN Ltd ( BOM:533206 ) has a substantial amount of capacity yet to be tied to PPAs, which could affect future revenue if not resolved.
-
The company is experiencing delays in the construction of hydroelectric projects in Arunachal Pradesh due to land acquisition and environmental clearance issues.
Q & A Highlights
-
Warning! GuruFocus has detected 7 Warning Signs with BOM:533206.
-
Is BOM:533206 fairly valued? Test your thesis with our free DCF calculator.
Q: Can you provide details on the CapEx for H1 FY26 and guidance for FY27 and FY28? A: For FY26, the total CapEx is around ?7,500 crore, with ?3,600 crore already spent in the first two quarters. We are confident of achieving the target set by the government. For FY27, the CapEx is projected at ?8,000 crore. The CapEx for FY28 is expected to remain in a similar range as we consolidate our current portfolio and focus on new projects in Nepal. Mr. Bhupendra Gupta, Chairman and Managing Director
Q: What is the progress on the hydroelectric projects in Arunachal Pradesh? A: There are five projects totaling 5 gigawatts. Three are in the pre-feasibility report stage. The 3,097 MW Etalin project and the 688 MW Attunli project are progressing well. Etalin is in the final stages of land acquisition, and tendering activities have started. Attunli is slightly behind due to land acquisition issues but is expected to move to the construction stage by the end of next year. Mr. Bhupendra Gupta, Chairman and Managing Director
Q: Why hasn't revenue increased despite new projects coming online? A: Revenue has not increased due to several factors: decreased energy charges due to plant availability issues caused by floods, increased tax expenses, and higher finance costs. Additionally, the benefit under section 80-IA has ended for one of our plants, impacting income. Mr. Bhupendra Gupta, Chairman and Managing Director
Q: What is the status of the Buxar Thermal Power project? A: The first unit of 660 MW is set to be operational within a day or two. The second unit is expected to be operational by January or February next year, within this financial year. Mr. Bhupendra Gupta, Chairman and Managing Director
Q: Can you provide an update on the renewable energy projects and their expected revenue contribution? A: We expect to commission around 650 MW of renewable energy projects this financial year, including 320 MW next month. The average tariff for these solar projects is around ?2.60 per unit. Mr. Bhupendra Gupta, Chairman and Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
