Production Commenced — What It Means
SJVN Limited, a Navratna CPSE, has achieved a significant operational milestone with the commissioning of Unit-II at the Buxar Thermal Power Project. Located at Chausa in Bihar, this unit adds 660 MW to the company's generation footprint, bringing the total site capacity to 1,320 MW. Developed by the wholly-owned subsidiary SJVN Thermal Private Limited, the project employs advanced supercritical technology.
This approach is designed to deliver higher thermal efficiency while reducing the overall environmental footprint compared to older subcritical plants. The unit is poised to stabilize power availability across the Eastern Region of India, addressing critical peak-hour shortages.
Revenue Impact
- The project ensures long-term revenue visibility through a pre-signed Power Purchase Agreement
- Bihar state is the primary beneficiary with an 85% allocation of total generated power
- Annual generation of 9,828.72 million units will significantly contribute to SJVN's consolidated top-line
- Full operationalization of the 2x660 MW plant enables economies of scale in coal procurement and logistics
- Strengthened energy security in the Eastern Region supports regional industrial demand
Business Overview
Originally established as a joint venture between the Government of India and the Government of Himachal Pradesh focused on hydropower, SJVN Limited has evolved into a diversified energy major. While it remains a dominant player in the green and renewable energy sector with substantial hydro assets, the Buxar project represents its strategic expansion into thermal power. This diversification helps mitigate the seasonal variability inherent in hydroelectric generation, providing a more stable base-load contribution to the national grid.
The company currently operates a wide range of projects across various Indian states and neighboring Nepal, pursuing a vision of becoming a 50,000 MW company by 2040.
Financial Context
- SJVN maintains a robust operating profit margin of 63.42% as of the June 2026 quarter
- The company reported a trailing twelve-month net profit of ₹639.24 crore
- Promoter holding stands firm at 81.85%, reflecting consistent government equity participation
- Stock is currently trading at a P/E of 40.67, notably lower than the industry P/E of 85.97
- Institutional investors, including FIIs and Mutual Funds, hold a combined 6.53% stake
