SJVN Ltd (SJVN): Q4 FY25 Net Loss Sparks Share Dip
SJVN Ltd (SJVN): Q4 FY25 Net Loss Sparks Share Dip
SJVN Ltd (Satluj Jal Vidyut Nigam) is a Government of India-owned hydropower and renewable energy utility with an installed capacity of ~1,972 MW across Nathpa Jhakri, Rampur, and Naitwar Mori, and several projects underway. It attained Navratna status in August 2024.
📉 Q4 FY25 Financial Results
- Total Income: ₹504.4 cr (+4.5% YoY from ₹482.9 cr).
- Operating loss: ₹34.2 cr (–6.8% margin); previous year Q4 operating profit ₹101 cr.
- Net loss: ₹127.6 cr vs. ₹61.5 cr profit in Q4 FY24.
- Revenue dip QoQ: Sales down ~3.4% vs ₹461.7 cr, with standalone sales ₹445.99 cr.
📉 Market Reaction
- SJVN shares dropped ~4.8% intraday to ₹97.29 on May 30, 2025 following results.
- NDTV reports a ~4.4% decline, with intraday bottom at ₹97.70 as investors react to QoQ loss and shrinking margins.
🔍 Key Metrics & Technicals
- Stock trades at ~47× P/E and ~2.7× book value; ROE ~5.8%, ROCE ~4.9%.
- 52-week range: ₹80.5–159.6; current ~₹98.3, ~38% off the top.
- July seasonality positive: 8 of last 16 Julys were up, average gain ~+3.5%.
- Technical indicators show mixed-to-bearish short term, but medium-term remains neutral.
⚖️ Strengths & Risks
| Strengths | Risks |
|---|---|
| Navratna status, strong hydropower franchise, diversified capacity mix including wind/solar | Q4 net loss, margin compression, operating cost jump |
| Government ownership, no promoter pledging, stable dividend (~1.8%) | High valuation vs. peers, high interest and depreciation costs |
| Seasonal tailwind potential and technical support zone around ₹95–100 | Weak equity market sentiment, pricing pressure from energy supply and O&M costs |
🧭 Outlook & Catalysts
- Q1 FY26 results: Operating recovery and return to profit essential for sentiment boost.
- Capex updates: Progress on under-construction hydro units (~1,558 MW) to support future growth.
- Energy cycle: Rising electricity tariffs and power demand ahead of monsoon season.
- Broader PSU sentiment: Policy support to renewable and hydropower, and any cost rationalization moves.
✅ Conclusion
SJVN’s Q4 FY25 loss marks a setback, especially in contrast to prior year gains. However, the dip offers a potential entry near ₹95–100 for long-term investors who believe in India’s hydropower growth story. The key will be operational recovery and margin reversal in upcoming quarters. Seasonality and PSU tilt could provide a springboard—but elevated valuation and power sector costs warrant caution.
