SJVN Q3 FY26 Net Profit Jumps 51% to ₹224 Crore: Key Hydro and Bikaner Solar Projects Behind the Growth
SJVN’s Q3 profit explodes 51% to ₹224 crore—but wait, how did a sleepy PSU crush estimates with hydro surges and solar secrets? Dividend cash incoming, ₹1,000cr debt bombshell dropped… Is this India’s next multibagger or a trap? Unpack the Bikaner twist that stunned Wall Street.
SJVN’s latest December-quarter (Q3) numbers show a sharp jump in profitability: consolidated net profit rose nearly 51% year-on-year to ₹224.31 crore, helped by a strong rise in income. Alongside the results, the company also announced an interim dividend and a plan to raise funds via debt—two signals markets track closely in PSU power names.
What exactly happened in Q3
SJVN reported consolidated net profit of ₹224.31 crore for the quarter ended December 31, 2025, up from ₹148.75 crore in the same quarter last year. The key driver highlighted in the company’s disclosure-based coverage was higher revenue/income in the quarter.
Total income for the quarter rose to ₹1,124.47 crore from ₹760.76 crore a year ago. In plain terms, the company earned significantly more during the quarter, and that uplift flowed through to the bottom line despite the usual moving parts in power businesses (generation variability, tariffs, and expenses).
Why this matters to Indian investors
For Indian retail investors tracking PSU energy stocks, a profit jump of this scale usually triggers two immediate questions: is the growth sustainable, and is the company sharing cash with shareholders. On the second point, SJVN’s board declared an interim dividend of ₹1.15 per equity share for FY 2025–26, which is a concrete, shareholder-friendly takeaway from the results day.
There’s also the market reaction angle: SJVN shares closed at ₹77.29, up 6.17% on the day the results were reported in the referenced coverage. Price moves don’t prove fundamentals, but they show how quickly sentiment can turn when reported numbers surprise on the upside.
Dividend and the ₹1,000 crore fund-raise: what to read into it
The interim dividend of ₹1.15 per share indicates management’s comfort in returning cash even while operating in a capital-intensive sector. For long-term investors, dividends from a power producer can matter because they reduce reliance on only capital gains for returns.
At the same time, the board approved raising up to ₹1,000 crore through issuance of unsecured, rated, taxable, redeemable, non-convertible, non-cumulative debentures via private placement. This kind of fund-raise is often used for capex, refinancing, or growth pipelines—so the useful next step for investors is to watch how the company deploys the funds and what it does to interest costs over coming quarters.
SJVN's key Projects driving this profit growth
SJVN’s Q3 FY26 profit jump is not about one single plant; it is the outcome of a maturing mix of hydro, solar and thermal assets, with a few marquee projects standing out as near‑term and medium‑term drivers.
1. Core hydro portfolio – base earnings engine
Hydropower remains the backbone of SJVN’s earnings, and higher hydro generation has been a key contributor in recent quarters. In earlier Q3 updates, SJVN reported hydropower generation rising about 15% year-on-year, showing how better water availability and stabilised plant operations can directly lift revenue and profit.
Key operational hydro stations (like Nathpa Jhakri and Rampur) are part of this base, and tariff-linked revenue plus efficiency gains tend to show up in quarters with strong hydrology. For an Indian investor, this hydro basket is essentially the annuity-like layer supporting the 51% Q3 profit jump you’re seeing now.
2. Solar and wind projects – sharp growth in renewables
SJVN’s renewable portfolio (solar + wind) has become a serious growth lever, with revenue from renewables having grown triple digits year-on-year in recent periods. In Q3 FY25, for example, revenue from wind and solar projects jumped 265% YoY, driven mainly by ramp-up in solar generation volumes.
Behind the numbers is a set of specific projects:
- Operational solar and wind projects contributing higher units sold and better utilisation.
- A fast-expanding pipeline in Rajasthan and Gujarat that is progressively moving from construction to commissioning and revenue recognition.
This renewables growth layer is crucial to understanding why profit isn’t just dependent on legacy hydro assets anymore.
3. Bikaner 1 GW solar project – flagship solar driver
The 1,000 MW Bikaner solar project in Rajasthan is one of SJVN’s most important projects for current and upcoming earnings. By late 2025, SJVN Green Energy had already commissioned around 830.7 MW at Bikaner, after adding 100.56 MW in December and 128.88 MW in October.
Management has indicated plans to fully commission the 1 GW Bikaner project by Q3 FY26, and had earlier confirmed that 137 MW had already been installed on site. As each new block achieves commercial operations and starts selling power under long-term PPAs, it adds directly to quarterly revenue and improves operating leverage, supporting the strong profit growth you are seeing now and likely in the next few quarters as well.
4. Omkareshwar and Khavda solar – new‑age capacity coming in
SJVN is also building capacity at Omkareshwar and Khavda, which is beginning to show up in the earnings trajectory.
Key elements:
- A 90 MW floating solar project at Omkareshwar in Madhya Pradesh has already been commissioned, taking SJVN’s total installed capacity past 2,466 MW when it came online.
- A 200 MW solar project at the Khavda Solar Park in Gujarat was taken up for construction in FY26, expected to generate about 505 million units in its first year once fully operational.
While not all of this is fully reflected in a single quarter’s profit, the staggered commissioning of such projects strengthens renewable revenues and helps lift consolidated profit growth over time.
5. Buxar Thermal Power Project – large baseload coming on stream
On the thermal side, the 1,320 MW Buxar Thermal Power Project in Bihar is another structural driver behind SJVN’s improving financial profile. Unit 1 of Buxar has already achieved full-load running and is nearing commercial operation, as highlighted in the company’s Q2 FY26 earnings commentary.
As Buxar units move into full commercial operation with firm PPAs, they will contribute significant baseload power sales, diversifying earnings beyond hydro and solar. Even if the full impact is phased, the market is already pricing in the visibility of this capacity when it looks at Q3 profit growth alongside forward projections.
6. Strategic pipeline – why these projects matter for profit
Underneath the Q3 FY26 51% profit rise is a broader capacity expansion plan targeting 25 GW by 2030, with around 3 GW annual additions envisaged. The current combination of:
- Mature hydro plants
- Rapidly scaling Bikaner and other solar assets
- New floating solar and Khavda capacity
- The ramp-up of Buxar thermal
is what gives SJVN operating leverage: every added megawatt on long-term PPAs dilutes fixed costs and supports higher profit growth than revenue growth.
If you want, I can next break this down into a simple table (project, state, capacity, and likely earnings impact timeline) to help you track which asset to watch for upcoming quarters.
An Indian, on-the-ground lens: what to watch next
From an Indian consumer perspective, power companies sit at the intersection of three realities—rising electricity demand, renewable build-outs, and the financial health of the broader power ecosystem. SJVN’s Q3 income jump suggests the operating environment (or the company’s execution) worked in its favour this quarter, but one quarter alone shouldn’t be treated as a “forever trend.”
If you’re tracking this story for investment or policy interest, keep an eye on:
- Whether total income stays near the ₹1,124.47 crore run-rate or normalises.
- How the ₹1,000 crore debt plan changes the balance between growth and finance costs.
- Dividend consistency beyond this interim ₹1.15 payout.
Disclosure: This is an informational, India-focused analysis and not financial advice; always cross-check the company’s regulatory filings and your risk profile before acting.
