State-run power producer SJVN Ltd delivered exceptional quarterly performance with revenue surging 196.68% year-on-year to ₹1,496.47 crore in Q3, driven by newly commissioned thermal and renewable energy assets. According to the latest quarterly results, the company reported operating profit of ₹909.67 crore, reflecting a quarter-on-quarter increase of 17.61% from ₹773.44 crore in the previous quarter. The strong revenue growth reflects the continued contribution of recently commissioned power generation projects, building on the company's momentum from earlier quarters when turnover nearly tripled year-on-year following the commissioning of the Buxar Thermal Power Project and several solar projects.
Despite the impressive revenue surge, SJVN faced significant profitability pressures with net profit turning negative at ₹-117.84 crore compared to ₹224.31 crore in the corresponding quarter last year. The company's profit before tax declined sharply to ₹-46.64 crore from ₹356.81 crore year-on-year, representing a 113.07% quarter-on-quarter decrease despite the strong top-line growth. As reported in the latest results, PBDT also declined 21.87% quarter-on-quarter to ₹447.75 crore from ₹573.07 crore, indicating that while revenue growth remained robust, operational efficiency challenges persisted across multiple profitability metrics.
The company continues to face operational efficiency challenges with operating margins remaining under pressure despite strong revenue performance. According to the latest quarterly data, the operating profit margin (OPM) compressed to 60.93% from 77.03% in the previous year, highlighting significant operational efficiency challenges despite strong top-line growth. The operating profit growth of 277.64% year-on-year while PBDT growth was 235.34% suggests that while the company is scaling operations rapidly, cost management remains a key focus area for investors and analysts tracking the Navratna PSU.
Following the latest quarterly results announcement, SJVN stock declined significantly, falling 5.57% in one day and trading at ₹67.56 on the NSE. However, the stock has shown recent recovery with gaining 2.04% in early Monday trade, rising to ₹70.02 as the stock continues to be a subject of interest for investors tracking the Nifty Midcap 150. The market reaction reflects investor concerns about the company's profitability challenges despite strong revenue performance, with the stock underperforming broader market indices. According to market data, the stock has declined 14.12% over the past month and 25.79% over three months, indicating sustained investor skepticism about the company's ability to translate revenue growth into sustainable profitability amid rising operational costs.
The company has continued to strengthen its long-term growth pipeline by signing Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Ltd (GUVNL) for green power supply from three hydroelectric projects in Himachal Pradesh. As reported by CNBC TV18, the agreements cover the 66 MW Dhaulasidh Hydroelectric Project, 210 MW Luhri Stage-I Hydroelectric Project and the 382 MW Sunni Dam Hydroelectric Project. Once commissioned, these projects are expected to provide a steady stream of renewable power to Gujarat under long-term supply arrangements, supporting the company's diversification strategy beyond its traditional hydroelectric portfolio and providing a foundation for future profitability improvements.
