SJVN Limited

SJVN Limited reported significant operational milestones in Q2 FY26. Unit 1 of the 60 MW Buxar Thermal Power Project was virtually inaugurated on August 22, 2025, and is expected to declare Commercial Operation Date (COD) within 1-2 days of the call. The cumulative 680 MW capacity under the 1,000 MW Bikaner solar project has also achieved COD in phases. The company's total operational capacity now stands at 3,146 MW, with an additional 320 MW from Bikaner expected to be commissioned by December 2025.

For the first half of FY26, total generation from all power stations reached 9,442 million units, reflecting an improvement of about 562 million units or 6.3% compared to the corresponding period of 2024-2025 (which was stated as 880 million units, likely a typo for 8,880 million units). Despite this growth and capacity additions, Q2 FY26 revenue was comparable to Q2 FY25. This was primarily due to a decrease in energy charges from a lower plant availability factor, resulting in an estimated loss of INR 50-60 crores, caused by floods and high silt affecting hydro plants like Rampur and Nathpa Jhakri. Additionally, increased tax expenses (due to 80 IEA benefit expiry) and higher finance costs (up ~INR 50 crores) impacted profitability.

SJVN has outlined an aggressive capital expenditure plan, with INR 3,600 crores already spent in the first two quarters of FY26 against a full-year target of INR 7,500 crores. The company projects a capex of INR 8,000 crores for FY27, with a similar range expected for FY28. The total debt currently stands at approximately INR 30,000 crores. Management expressed confidence in servicing this debt, anticipating that cash generated from the newly commissioned Buxar project will contribute significantly to debt repayment over the next two years.

The company has floated tenders for 19.8 GW of renewable capacity and issued Letters of Award (LOAs) for 13.74 GW. Power Purchase Agreements (PPAs) have been executed for 3.74 GW, with an additional 3.75 GW expected to be signed in the next two months. However, a significant challenge remains with approximately 9 GW of LOAs for which PPAs are yet to be signed. This delay is attributed to issues with grid connectivity and transmission line shortages, particularly affecting projects in Rajasthan and Gujarat. Management is engaged in stakeholder consultations, with clarity on the path forward for these unsigned PPAs expected within 1-2 months.

SJVN's total under-construction portfolio stands at 5,091 MW, comprising 1,558 MW hydro, 1,320 MW thermal, and 2,213 MW solar projects. Beyond the imminent Buxar and Bikaner commissionings, the company plans to commission approximately 650 MW of solar capacity in FY26, including projects in Jamui (75 MW), Assam (120 MW), Bagodara (35 MW), and Nawa (100 MW). Major hydro projects like Etalin (3,097 MW) and Attunli (688 MW) in Arunachal Pradesh are progressing, with Etalin in the final stages of land acquisition. Additionally, the Dhaulasidh Hydro Project (66 MW) is targeted for commissioning by December 2026.