SJVN Ltd Q4 FY2026 Concall Summary

Key Takeaways

• FY26 revenue jumped 22% on one-time tariff orders, but underlying profitability was dragged down by heavy losses at the solar (SGEL) and thermal (Buxar) subsidiaries.
• Buxar is the swing factor for FY27: Unit-1 ran at a loss-making ~60% PLF; management is "very much sure" it turns profitable this year as Unit-2 commissions and PLF crosses 70%.
• The balance sheet is absorbing new-project pain now: trade receivables ballooned to ₹1,299 crores, and impairment losses of ₹174 crores hit depreciation, even as the project pipeline advances.
• A 16 GW renewable pipeline exists mostly on paper: of the REIA awards, ~9 GW of PPAs remain unsigned, and management concedes it is "very, very difficult to say" how much will convert.
• What to watch next quarter: whether Buxar Unit-2 reaches commercial operation on schedule, the pace of PPA conversion from the REIA backlog, and any evidence that SGEL's Bikaner plant is ramping up toward full capacity.

Profitability Drag: Subsidiary Losses

• SGEL lost ₹258 crores in FY26, worse than the ₹151 crore loss last year, because solar generation is cyclical, CUF was lower on some commissioned plants, and the flagship 1,000 MW Bikaner Solar project only started operating in December 2025 and has not yet reached full capacity. Finance costs and depreciation are already being charged to the P&L.
• Buxar Thermal lost ~₹93 crores because Unit-1 operated at only ~60% PLF, the minimum technical level. At that utilization, fixed costs cause losses; the plant breaks even only above 70% PLF. Power was also curtailed by the beneficiary due to low demand and daytime solar flooding.
• Bikaner faces a 120 MW curtailment on its 1,000 MW capacity due to unavailability of a reactor (SVR). The regulation requiring this equipment came from CEA after Bikaner was already awarded and under construction, and equipment delivery was delayed because of limited manufacturers.
• The Khawada project may face ~300 MW curtailment because transmission line delays have postponed connectivity dates.
• Management expects both subsidiaries to improve: SGEL losses will "improve substantially" in FY26-27, and Buxar will become profitable once PLF reaches 70%+, which is expected with Unit-2 commissioning and Unit-1 stabilization.

Gupta: "beyond 70% PLF only, we start generating the profit. But now this year, we will be commissioning the second unit also. And everything has been stabilized in Unit-1 also. So, we are very much sure that during this FY '27, we are going to have a profit from the Buxar Thermal Power plant."

Revenue: The Tariff Order Boost

• FY26 revenue grew 22% YoY, driven primarily by recognition of earlier-year sales of ₹679 crores from a truing-up tariff order for 2019-2024 covering Nathpa Jhakri and Rampur, plus a provisional tariff order for 2024-2029 for Rampur.
• Trade receivables jumped to ₹1,299 crores as of 31 March 2026, up from ₹262 crores a year ago. This includes ₹906 crores of unbilled debtors, of which ₹776 crores came from a tariff order received in the last week of March 2026 and billed in FY26-27, and ₹130 crores from March power sales billed in April.
• Other income declined 8% YoY mainly due to a decrease in late payment surcharge from better realization of trade receivables and lower interest from banks.
• Finance costs rose ₹184 crores, mainly due to an exchange rate variation increase of ₹206 crores.
• Depreciation rose ₹178 crores due to recognition of impairment losses of ₹174 crores as per AS36.
• Tax expense rose ₹256 crores due to higher profit before tax and increased utilization of MAT credit, following discontinuation of the tax reduction under section 81A of the Income Tax Act on completion of the eligible 10-year block for Rampur and KWPP.
• PAT grew 4% to ₹1,008 crores for FY26; Q4 PAT was up 308% to ₹125 crores.

Project Pipeline & Commissioning

• Buxar Unit-1 (660 MW) was commissioned on 14 November 2025. Unit-2 (660 MW) was synchronized with the national grid on 8 May 2026 and commercial operation is expected by end of May 2026. At full generation, the plant will produce ~982.8 crore units annually, with 85% allocated to Bihar.
• Bikaner Solar (1,000 MW) was commissioned on 24 December 2025 under the CPSU scheme. Full 1,000 MW capacity is expected only after the SVR reactor is commissioned by October 2026.
• Dhubri Solar was commissioned on 5 February 2026 at a tariff of ₹3.92/unit.
• Dhaulasidh Hydro (69.5 MW) is targeted for commissioning by March 2027. [4-5]
• Arun-III hydro in Nepal (900 MW) has made significant progress on electromechanical equipment and transmission logistics; all four units are scheduled for commissioning by December 2028.
• Gujarat solar awards of 850 MW were secured on 16 October 2025.
• BESS projects of 2,000 MWh were awarded across Uttar Pradesh and Haryana.
• Capacity addition outlook: FY27 adds Buxar 660 MW thermal, Dhaulasidh 69.5 MW hydro, and ~1,555 MW solar (May 2026 to March 2027). FY28 adds ~650 MW solar. FY29-30 adds ~2,500 MW.

The REIA Pipeline: Awards vs Reality

• 16 GW of renewable projects have been awarded as REIA across solar, wind, hybrid and storage. In FY25-26 alone, 4 GW was awarded and ~2,177 MW of PSAs were signed.
• ~9 GW of PPAs remain unsigned from the REIA backlog. Management declined to quantify how much will convert, calling it "very, very difficult to say anything as of now," and noted the problem lies in the component mix of the original tender.
• Some tariffs are attractive at ₹2.53-2.54/kWh versus new tenders at ₹2.8-2.9/kWh, so "there is a possibility" that pure solar capacity can be sold.
• Demand for RE power will not decrease, but may shift to different configurations such as solar plus BESS, or FDRE with solar plus wind plus BESS.
• Management is revising its long-term targets (25,000 MW by 2030, 50,000 MW by 2040) to "realistic targets," citing project delays and losses from lower CUF at commissioned projects. A new business plan will be shared "very soon."

Gupta: "Very, very difficult to say anything as of now. We are trying very hard because I told you it is the problem of the component of that, power of the tender particularly."

Guidance & Commitments

Key Metrics