Are SJVN latest results good or bad?

SJVN's latest financial results for the quarter ended September 2025 present a mixed picture, highlighting operational strengths but significant challenges in profitability. The company reported net sales of ₹1,026.25 crores, reflecting a modest year-on-year growth of 0.60%, a notable decline from the previous year's growth of 16.84%. This indicates a slowdown in revenue expansion, despite the seasonal advantages typically associated with hydroelectric generation.
The consolidated net profit for the same period was ₹307.91 crores, which represents a decline of 30.20% compared to the prior year. This sharp drop in profitability is concerning, especially given the backdrop of rising interest expenses, which surged by 58.96% to ₹315.10 crores. This increase in financial costs underscores the burden of the company's aggressive debt-funded expansion strategy, which has led to heightened financial leverage.

Operating profit, excluding other income, was reported at ₹828.40 crores, with an operating margin of 80.72%. While this margin reflects operational efficiency, it is slightly lower than the previous year's figure of 83.30%. The company's ability to maintain high operating margins is a positive aspect, but it is overshadowed by the pressures on net profit due to escalating interest costs.

Overall, SJVN's financial performance indicates strong operational capabilities but raises concerns regarding its profitability trajectory and financial sustainability amidst rising debt levels. The company has experienced an adjustment in its evaluation, reflecting these ongoing challenges.