Analysis: SJVN Limited

Growth thesis

SJVN is a state-owned power generator operating hydro, thermal, and solar projects, including 1,320 MW Buxar Thermal (Unit-2 commissioned May 2026), 1,705 MW solar (Bikaner, Gujarat), and Nepal's 900 MW Arun-III hydro. Growth hinges on 1,555 MW solar additions by March 2027, Dhaulasidh Hydro (69.5 MW) by March 2027, and Nepal projects by 2028. Despite Buxar's Unit-2 COD and 650 MW solar targets for FY28, execution risks persist: Nepal hydro delays (Arun-III pushed to 2028), 9 GW REIA projects lack signed PPAs due to grid constraints, and Buxar's profitability depends on 70%+ PLF. CAPEX of INR9,400-7,500 crores through FY29 supports capacity growth, but delayed PPAs and transmission bottlenecks could strain margins. The key watchpoint is whether Nepal projects and FY27 solar targets meet deadlines amid regulatory and grid challenges.

Why is SJVN Limited stock rising?

• Buxar Thermal Power Plant Unit 2 (660 MW) commercial operation expected by end of May 2026
• Dhaulasidh Hydro Project (69.5 MW) commissioning targeted for March 2027
• Around 1,555 MW solar capacity addition to be commissioned by March 2027
• FY28 capacity addition plan of approximately 650 MW, mainly solar
• Arun-III Hydro Project in Nepal (900 MW) targeted for commissioning all four units by December 2028

Research report

companyname: SJVN Limited ticker: SJVN sector: Power Generation (Hydro, Thermal, Solar, Wind) SJVN Limited is a Navratna Central Public Sector Undertaking under the Ministry of Power, Government of India. It was established in 1988 as a joint venture between the Government of India and the Government of Himachal Pradesh. The company generates and sells electricity from hydro, thermal, solar, and wind power projects. As of May 2026, SJVN operates 15 projects with a combined capacity of 4,196.5 ...

Catalysts

capex, margin expansion

Growth guidance

No guidance

Management consistency

mixed