SJVN Ltd Management Discussions

1. INDUSTRY OVERVIEW/ INDUSTRY STRUCTURE AND DEVELOPMENTS

All India installed power generation capacity as on 30.04.2026 was 537264.37 MW. Capacity addition of 64695 MW comprising 9470 MW of thermal, 3620 MW of large hydro, 700 MW of Nuclear and 50,905 MW in other renewables (Solar, Wind, Small Hydro & Bio-power) has been added in FY 2025-26.

India successfully met an all-time maximum power demand of 242.49 GW during FY 2025-26. Per capita electricity consumption in India has surged to 1460 kWh in 202425, marking a 52.6% increase (503 kWh) from 957 kWh in 2013-14. The average availability of electricity in rural areas has increased from 12.5 hours in 2014 to 22.6 hours, while urban areas now enjoy up to 23.4 hours of power supply as compared to 22.1 hours in 2014, reflecting substantial improvements in the reliability and reach of electricity services. Govt. of India has finalised National Electricity Plan from 2023 to 2032 for Central and State transmission systems to meet a peak demand of 458 GW by 2032.

Industry scenario indicates that there is ample opportunity for consistent growth of business in hydro, PSP, Renewable and Thermal energy sectors in the times to come with growth in demand. The present installed capacity of SJVN is 4196.5 MW and 3926.5 MW is under construction.

As regards hydro potential, India has an estimated hydro power potential of about 133410 MW out of which only about 51415 MW (including pSp as on 31.03.2026) has been commissioned. The bulk of the unharnessed potential is located in the hill states / UTs of Arunachal Pradesh, Uttarakhand, Himachal Pradesh, Sikkim and Jammu &Kashmir. With fast increase in installed capacity of solar power, hydropower with its peaking power has huge potential to contribute towards grid stability. The above industry scenario signifies that there is ample opportunity for consistent growth of business in hydro sector.

Pumped Storage Projects (PSPs) also have a significant role to play, to act as water batteries to store solar energy during day time and generate peaking power at non-solar hours. India has the potential of PSPs of about 267 GW, which includes 58 GW of onstream PSPs and 209 GW of off-stream PSPs. Only 7GW developed so far and12 GW are in the under-construction stage rest is under development stage. Government has set an ambitious target of 100GW or more of Pump Storage capacity by 2035-36.

2. OPPORTUNITIES AND THREATS (SWOT)

(i) STRENGTHS:

• Expertise in developing large hydro power projects from concept to commissioning, operation, and maintenance.

• Extensive experience in developing complex power projects in India and abroad.

• State-of-the-art hard coating facility for underwater components for mitigating erosion, complemented by complete in-house design capabilities for mega hydropower projects.

• Being primarily a renewable energy (RE) generation company, SJVN is well equipped to harness emerging opportunities in the renewable energy sector.

• Minimal downtime and high Plant Availability Factor.

• Long-term power purchase agreements ensure stable revenue.

• Historical financial performance and steady cash flows enable funding for new projects.

• Lean organization with high revenue and profit per employee.

• Committed employees with a philosophy that acknowledges and rewards contributions.

• Excellence in CSR activities and implementation of National R&R policies.

• Effective corporate governance and dynamic leadership.

(ii) WEAKNESS:

• NJHPS and RHPS are cascade schemes and operating in tandem. Any difficulties faced in the operation of NJHPS will have direct consequences on power generation of RHPS.

• Initial high tariff of hydro projects- New hydro projects have higher tariff in the initial few years. It is difficult to compete with cheaper renewables and thermal power.

• Dependence on rainfall, solar radiation, and wind resources exposes the Company to weather-related uncertainties, which may adversely impact power generation and revenue.

• Hydropower projects are vulnerable to geological uncertainties and other site- specific challenges, which may lead to time and cost overruns, resulting in higher project costs and tariffs.

• Reluctance of state governments to allot hydro/PSP projects.

(iii) OPPORTUNITIES:

• The unharnessed hydro potential primarily located in the hill states/UTs of Arunachal Pradesh, Uttarakhand, Himachal Pradesh, Sikkim and Jammu & Kashmir.

• The growing solar portfolio presents significant opportunities for the deployment of Battery Energy Storage Systems (BESS), enhancing grid stability and revenue potential.

• Countrys dynamic and evolving landscape shaped by rapid economic growth, urbanization, and increasing energy demands.

• SJVNs expansion into wind, solar, and transmission, both nationally and internationally.

• Indias objective of 100GW or more of Pump Storage capacity by 2035-36, creating opportunities.

• Indias goal to reach 500 GW non-fossil energy capacity by 2030, creating opportunities.

(iv) THREATS:

• Most of the hydro-electric projects are located in remote locations and are prone to natural calamities such as cloud burst, land slide, road block etc. These natural calamities also contribute to delays, unforeseen events and cost escalation.

• Stringent norms and cumbersome procedures for getting environment clearance, forest clearance and clearance from National Board for Wild Life (where ever applicable), Land Acquisition and other statutory clearances delay the commencement of construction of projects.

• Despite of extensive survey and investigations, the probability of geological surprises in various components of hydroelectric projects in young Himalayan ranges pose great technical challenge involving extremely cost intensive and timeconsuming measures.

• With the tariffs of solar and wind power projects going down, viability of hydro power projects, which is the core strength of SJVN, is becoming increasingly questionable.

• Any technological breakthrough which makes battery storage systems for storing renewable energy economically and sustainably will may make hydro power generation unviable.

• Non signing of Power Purchase Agreements (PPAs) by beneficiaries for new hydro projects and disowning signed PPAs where tariff of the project is high.

• Declining tariffs resulting from technological advancements in new wind and solar projects may constrain the renewal or extension of PPAs for existing projects, posing a risk to future revenues.

• Changes in hydro policy by state governments by introducing Water Cess, Land Cess, enhancing free power, etc.

3. OUTLOOK

Indias power generation outlook is promising, driven by expected growth in industrial production and the governments mission to provide 24x7 electricity to all. The power sector is central to Indias energy security strategy. The recent tensions in West Asia and evolving geopolitical developments have once again highlighted the critical importance of self-reliance and energy security in the power sector.

By accelerating the transition to clean energy, improving efficiency, strengthening domestic manufacturing, and modernizing the electricity system, India can reduce its dependence on imported fossil fuels, cushion the impact of geopolitical shocks, and move towards the vision of Atmanirbhar Bharat while ensuring sustainable economic growth.

SJVN plays a significant role in this endeavor, aiming to supply affordable power. Key highlights of SJVNs progress include existing Portfolio of 15 power stations with an installed capacity of 4196.5 MW which includes three hydro, two wind one thermal and nine solar projects across the country. Subsequent to the announcement of Green Hydrogen Policy by Govt. of India, SJVN has also commissioned one Pilot Green Hydrogen in Himachal Pradesh. Presently, fifteen projects totaling 3926.5 MW are under construction, expected to generate strong cash flows and propel the companys growth.

During FY 2025-26, SJVN generated 11,914 MU of renewable energy, thereby avoiding approximately 9.8 million tonnes of CO 2 emissions. This is a significant step towards supporting Indias vision of a sustainable and developed nation under Viksit Bharat @2047, while contributing to the countrys Net Zero emissions target by 2070.

SJVNs efforts are poised to support Indias goal of universal electricity access while contributing to a cleaner energy future.

4. RISKS AND CONCERNS

Risk Management Policy of SJVN was approved by the Board in September, 2022 and Risk Management Framework as per ISO 31000:2018 has been implemented. The Policy has been duly supplemented with separate and comprehensive Risk Management Plans for each project/Corporate Office. The Risk Management Strategy includes Risk assessment, its identification, analysis & evaluation with associated action plan, which includes the following:

Avoidance: Eliminating the cause of the risk.

Transfer: Moving the risk to a third party (e.g., insurance).

Reduction: Taking steps to lower the likelihood or impact.

Retention: Accepting the risk and planning for the potential cost.

5. RISK MANAGEMENT FRAMEWORK

Risk management framework assists SJVN in integrating risk management into significant activities and functions of the organization. It entails formulation of a Risk Matrix to assign the likelihood of occurrence to the assigned risks viz., controllable, uncontrollable and partly controllable, suggesting mitigation mechanism and lead responsibility centre. SJVN has implemented Risk Management Framework as per ISO 31000:2018 consisting of the following:

1. Risk Identification and Assessment: This includes identification of potential risks that could impact the organizations objectives and assessment processes across its projects and departments based on their likelihood and potential impact. This entails evaluating both internal factors (such as operational risks, financial risks, and compliance risks) and external factors (such as market risks, regulatory risks, and environmental risks).

2. Risk Mitigation Plan: Once risks are identified, risk mitigation plan are developed to address identified risks. These plans involve implementing preventive measures, establishing control mechanisms, and implementing best practices to minimize the likelihood and impact of risks. For opportunities, SJVN devises action plans to maximize their potential benefits and value.

3. Regular Risk Review and Reporting: Periodic reviews of risks are conducted by organising meetings at project & corporate level and opportunities to ensure their relevance and effectiveness. Frequency of Project Level Risk Steering Committee meeting is on quarterly basis and for Corporate Level Risk Steering Committee meeting is half yearly basis. Besides above, the Board Level Risk Management Committee meetings are held once in six months.

4. Preventive Actions and Continuous Improvement: SJVN emphasizes the implementation of preventive actions to address potential risks proactively. This involves conducting risk assessments, identifying control gaps, and implementing measures to strengthen controls and reduce the likelihood of risks occurring. The organization also fosters a culture of continuous improvement, regularly evaluating and enhancing risk management practices. For continuous improvement, Risk Audit is also conducted annually from external auditor to check the compliance of ISO 31000:2018.

5. Training and Awareness: SJVN provides training and awareness programs to its employees to enhance risk identification, assessment and control capabilities. This ensures that employees across the organization understand their roles and responsibilities for protecting organisational assets, operations & reputation from potential harm and capitalizing on opportunities.

6. FINANCIAL DISCUSSION AND ANALYSIS

A detailed financial discussion and analysis is furnished below on the Audited Financial Statements of the company for the financial year 2025- 26 vis-a-vis financial year 2024-25.

Notes referred in below paragraphs are part of the Standalone financial statements for the financial year 2025-26 placed elsewhere in this report.

Figures of previous years have been regrouped/ rearranged wherever necessary.

A. RESULTS OF OPERATIONS

1. INCOME:

Particulars	FY 2025-26		FY 2024-25
Units of Electricity Generated (Million Units)	10059		9957
INCOME			(Rs. in crore]
1. Revenue from Operations
a) Energy Sales	3247.09		2771.45
b) Power Trading	1.74		75.62
c) Consultancy Income	11.57		7.15
d) Other Operating Revenues	284.12		43.03
Total Revenue from Operations		3544.52		2897.25
2. Other Income		325.14		355.19
Total Income		3869.66		3252.44

The income of the Company comprises revenue from sale of electricity, sale of energy through trading, late payment surcharge received from beneficiaries, consultancy, interest earned on investment of surplus funds, interest income and dividend from joint venture company etc. The gross income for financial year 2025- 26 is Rs. 3869.66 crore as compared to Rs. 3252.44 crore in the previous year registering an increase of 18.98 %. The increase in total income is primarily due to higher energy sales resulting from increased electricity generation during the year and arrear of sales and interest thereon recognised pursuant to receipt of the tariff order for truing-up of tariff for the period 201924 in respect of NJHPS & RHPS and provisional tariff order for the period 2024-29 in respect of RHPS.

Tariff for computation of sale of energy

The sale of electricity from the Companys major hydro power stations namely NJHPS & RHPS is governed by the tariff determined by the Central Electricity Regulatory Commission (CERC), in accordance with the Tariff Policy issued by the Government of India. CERC has notified the Tariff Regulations, 2024 containing inter-alia the terms & conditions for determination of tariff, applicable for a period of five years with effect from 01.04.2024. The tariff for the period 2024-29 in respect of Rampur Hydro Power Station (RHPS) of the Company has been approved by CERC, whereas tariff order in respect of Nathpa Jhakri Hydro Power Station (NJHPS) with effect from 1st April, 2024 is pending. Accordingly, billing to beneficiaries in respect of NJHPS has been done provisionally in accordance with the tariff approved and applicable as on 31st March, 2024 in terms of the aforesaid regulations. Under the CERC Tariff Regulations, tariff is determined based on Annual Fixed Charges (AFC), which comprise Return on Equity (ROE), depreciation, interest on loan, interest on working capital and operation and maintenance (O&M) expenses. ROE is grossed up with the effective income tax rate of the respective financial year to ensure recovery of the income tax liability through tariff. For the purpose of recovery, AFC is bifurcated into two equal parts i.e. Energy Charges and Capacity Charges. Recovery of Energy Charges is dependent upon energy generated and full recovery is ensured when design energy level is achieved. Generation over and above design energy entitles for additional revenue in the form of secondary energy charges as well as incentive by way of deviation charges where the Power Station of the Company contribute towards maintaining grid stability. Recovery of capacity charges is dependent on the actual availability of plant for generating power with reference to Normative Annual Plant Availability Factor (NAPAF). Company is entitled to receive incentives for achieving higher Plant Availability Factor against NAPAF. Sales also include reimbursement of Foreign Exchange Rate Variation (FERV) on loan repayment and interest, as allowed under the CERC Tariff Regulations.

Electricity generated by one of the Companys hydro power stations, Naitwar Mori Hydro Power Station (NMHEP), having an installed capacity of 60 MW, has been sold through Power Exchange and bilateral agreements with consumers.

Revenue from operations also includes sale of electricity generated from wind and solar power stations, at tariff rates specified in long-term Power Purchase Agreements (PPAs) signed with state government entities.

Revenue from Operations (Note 2.33)

Energy Sales

The Company sells electricity to bulk customers, comprising mainly electricity utilities owned by State Governments and private distribution companies. Sale of electricity is generally based on long term Power Purchase Agreements (PPAs) executed with such utilities. Sales for the financial year 2025-26 have been recognized at 3247.09 crore as compared to Rs.2771.45 crore in the financial year 2024-25, Revenue from the sale of electricity during FY 2025-26 stood at Rs.3,247.09 crore as against Rs.2,771.45 crore in FY 2024-25, registering an increase of 17.16% over the previous year.

Energy sales for the FY 2025-26 include an amount of Rs.429.54 crore (previous year : Nil) pertaining to earlier years recognized upon receipt of tariff orders during the year.

Sales include an amount of Rs.160.11 crore (previous year Rs.188.19 crore) on account of capacity incentive in respect of hydro power stations mainly due to achievement of higher plant availability factor as compared to Normative Plant Availability Factor.

The company has a rebate policy for providing graded discounts for early payment. The rebate is netted off from energy sales.

Details of Generation and Plant Availability Factor (PAF) for hydro power stations, for which tariff is determined as per CERC regulations, are given below:

Particulars	NJHPS		RHPS
	2025-26	2024-25	2025-26	2024-25
Design Energy (MUs)	6612	6612	1878	1878
Gross Generation (MUs)	7507	7421	2108	2074
Normative PAF (%)	87	87	83	83
Actual PAF (%)	96.82	101.43	97.34	101.13

Sales also includes deviation charges amounting to Rs. 27.57 crore (previous year Rs. 29.30 crore) recognised for positive deviation in generation from the scheduled energy, in accordance with the Deviation Settlement Mechanism (DSM) rates notified by CERC.

Gross energy generation from Naitwar Mori HEP having installed capacity of 60 MW during the year is 310 MUs (Previous Year: 316 MUs). Electricity generated from this power station has been sold through Power Exchange and bilateral agreement. An amount of Rs.130.28 crore has been recognized as sales for the year ended 31st March 2026 (Previous Year Rs. 143.63 crore).

Revenue from Renewable Energy Power Stations:

The revenue from sale of electricity from Renewable Energy Power Stations (Wind and Solar Power) has decreased by Rs. 2.56 crore (current year Rs. 46.27 crore) (Previous year: Rs. 48.83 crore) due to decrease in generation from Wind and Solar Power Stations by 12 MUs (current year 134 MUs) (Previous year: 146 MUs).

Sale of Energy through trading

Revenue from operations for the year include an amount of Rs. 1.74 crore on account of sale of power through trading. (Previous year: Rs. 75.62 crore).

Consultancy

Revenue from operations also includes an amount of Rs.11.57 crore (Previous Year Rs.7.15 crore) towards consultancy charges.

Other Operating Revenue :

Other Operating Revenue primarily includes interest from beneficiaries recognised pursuant to receipt of the tariff order for truing-up of tariff for the period 2019-24 in respect of NJHPS & RHPS and provisional tariff order for the period 2024-29 in respect of RHPS, fees received by the Company as a Renewable Energy Implementation Agency (REIA), and income from the sale of Renewable Energy Certificates (RECs). Other operating income increased by Rs. 241.09 crore to Rs. 284.12 crore in the current year, against Rs. 43.03 crore in the previous year. Increase in mainly on account of recognition of interest from beneficiaries during the year.

Revenue from operations constituted 91.60% of total income in FY 2025-26, as against 89.08% in FY 2024-25.

Other Income (Note 2.34)

Other income primarily consists of interest income from term deposits with banks, interest from subsidiary companies, late payment surcharge, interest from employees and contractors, and interest on income tax refunds. Other income decreased by Rs. 30.05 crore to Rs. 325.14 crore in FY 2025-26 (Previous Year: Rs. 355.19 crore), registering a decline of 8.46%. This decrease is primarily attributable to decrease in interest income from deposits with banks and late payment surcharge, which decreased by Rs. 52.89 crore & Rs. 23.42 crore to Rs. 110.62 crore & Rs. (0.88) crore respectively (Previous Year: Rs.163.51 crore & Rs. 22.54 crore respectively). However, interest income from subsidiaries increased by Rs. 66.87 crore to Rs. 168.89 crore (Previous Year: Rs. 102.02 crore).

Major components of other income are as under:

(Rs. in crore)

Other Income	Financial Year 2025-26	Financial Year 2024-25
Interest from Banks	110.62	163.51
Interest from Subsidiary Companies	168.89	102.02
Late Payment Surcharge from Beneficiaries	(0.88)	22.54
Other Miscellaneous Income*	46.51	67.12
Total Income	325.14	355.19

*Includes income from liquidated damages, excess provision/sundry credit balances written back, receipt of maintenance of ICF, interest from employees and contractors, interest on income tax refund, bid processing fees, and dividend from joint venture companies, etc.

2. EXPENDITURE

(Rs. in crore)

Expenditure	Financial Year 2025-26	Financial Year 2024-25
Purchase of Electricity for Trading	0.95	75.16
Employee Benefits Expense (note no. 2.35)	299.31	304.61
Finance Costs (note no. 2.36)	910.36	726.48
Depreciation, Amortisation and Impairment Expense (note no. 2.37)	631.84	454.49
Other Expenses (note no. 2.38)	397.35	395.60
Total Expenditure	2239.81	1956.34

The total expenditure of the Company increased by 14.49% to Rs. 2239.81 crore in FY 2025-26 as against Rs.1956.34 crore in FY 2024-25. This increase is primarily attributable to a rise in finance cost and depreciation, amortisation & impairment expense by Rs.183.88 crore & Rs. 177.35 crore respectively, which stood at Rs.910.36 crore & Rs. 631.84 crore in FY 2025-26, as compared to Rs. 726.48 crore & Rs. 454.49 crore in FY 2024-25 respectively. Total expenditure as percentage of total income in FY 2025-26 was 57.88% as compared to 60.15% in FY 2024-25.

Purchase of Electricity for Trading

Company has incurred an expenditure of Rs. 0.95 crore on purchase of electricity for trading during the financial year 2025-26 as compared to Rs. 75.16 crore in the previous financial year.

Employee Benefits Expense

Employee Benefits Expense includes salaries and wages, allowances, incentives, contributions to provident and other employee benefit funds, and staff welfare expenses. These expenses accounted for 13.36% of total expenditure in FY 2025-26, as compared to 15.57% in FY 2024-25.

Employee Benefits Expense for the year was Rs. 299.31 crore (previous year Rs.304.61 crore) reflecting a decrease of Rs.5.30 crore in comparison to the previous year. The decrease is mainly on account of superannuation of senior employees, partly offset by annual increment and increase in Dearness Allowance etc.

Finance Costs

The Finance Cost mainly consists of interest on rupee term loans, working capital loans, foreign currency loans, guarantee fees, interest on bonds and interest on arbitration awards etc. During the FY 2025-26, finance costs increased by Rs.183.88 crore to Rs.910.36 crore (previous year: Rs.726.48 crore).

The increase in finance cost during the year is mainly due to the reasons enumerated as below:

i) Increase in Foreign Exchange Rate Variation (FERV) on restatement of foreign currency loans by Rs.206.61 crore, from Rs.112.65 crore in the previous year to Rs.319.26 crore during FY 2025-26, consequent upon adverse movement in foreign exchange rates.

ii) Increase in interest on arbitration awards/court cases by Rs.34.79 crore, from Rs.28.52 crore in the previous year to Rs.63.31 crore during FY 2025-26

iii) The above increase was partly offset by decrease in interest cost on domestic and foreign borrowings by Rs.57.82 crore (Current Year: Rs. 510.30 crore) (Previous Year Rs. 568.12 crore) due to decrease in interest rates and repayment of loans.

The finance cost for the FY 2025-26 includes an amount of Rs. 168.89 crore (previous year: Rs. 102.02 crore), which is recoverable from subsidiary companies against loans provided to them, and has been accounted for under other income.

Finance Cost represents 40.64% of the total expenditure during FY 2025-26 as compared to 37.13% during FY 2024-25.

Depreciation, Amortisation and Impairment Expense

As per the Accounting Policy of the Company, depreciation is charged on assets of operating units on straight line method following the rates & methodology notified by Central Electricity Regulatory Commission (CERC) for the purpose of fixation of tariff in accordance with Schedule-II of the Companies Act 2013. Depreciation on assets other than operating units of the company is charged to the extent of 90% of the cost of the asset following the rates notified by CERC for fixation of tariff except for some items for which depreciation is charged at the rates assessed by the company.

The depreciation, amortisation and impairment expense for FY 2025-26 increased by Rs. 177.35 crore to Rs. 631.84 crore as compared to Rs. 454.49 crore in the previous year.

The increase is primarily attributable to the recognition of an impairment loss of Rs. 174.11 crore during the year in respect of Naitwar Mori Hydro Power Station and three renewable energy projects, in accordance with the provisions of Ind AS 36 - Impairment ofAssets.

Depreciation, amortisation and impairment represents 28.21% of the total expenditure during FY 2025-26 as against 23.23 % in FY 2024-25.

Other Expenses

Other Expenses mainly comprise Repair & Maintenance of Buildings, Roads, Electromechanical works and Plant & Machinery, Insurance, Security, CSR Expenses and other administrative expenses.

Other Expenses represents 17.74 % of total expenditure during FY 2025-26 in comparison to 20.22 % in FY 2024-25. In absolute terms, the expenses were Rs. 397.35 crore in FY 2025-26 as compared to Rs. 395.60 crore in the previous year, reflecting a marginal increase of Rs. 1.75 crore.

Profit before net movement in regulatory deferral account balances and Tax

Profit before net movement in regulatory deferral account balances and tax increased by 25.75 % to Rs. 1629.85 crore during FY 2025-26 as against Rs. 1296.10 crore during previous year due to the reasons explained above.

Tax Expenses:

Current Tax Expense

The Company recognise income tax in accordance with the provisions of the Income- tax Act, 1961. During FY 2025-26, the Company was liable to pay current tax after utilisation of the available Minimum Alternate Tax (MAT) credit. Current tax expense increased to Rs. 345.73 crore as compared to Rs. 226.46 crore in the previous year. The increase in current tax expense was primarily attributable to higher taxable profits during the year.

Deferred Tax (Note no. 2.8)

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their corresponding tax bases. Deferred tax expense for FY 2025-26 amounted toRs. 222.96 crore as compared to Rs. 86.65 crore in the previous year. The increase in deferred tax expense was primarily attributable to higher utilisation of Minimum Alternate Tax (MAT) credit during the year as compared to FY 2024-25.

Net Movement in Regulatory Deferral Account Balance (Note no. 2.39)

The Company is primarily engaged in the generation and sale of electricity. The tariff for electricity supplied from its major hydro power stations is determined by the Central Electricity Regulatory Commission (CERC), which lays down the principles and methodologies for tariff determination. The tariff is based on allowable costs such as interest, depreciation, operation and maintenance expenses, and includes a stipulated return on equity.

CERC Tariff Regulations also allow certain costs such as foreign exchange rate variation (FERV) and interest on arbitration awards etc. to be recovered from beneficiaries through future tariffs. In line with these provisions, and as permitted under Ind AS 114 (Regulatory Deferral Accounts), related balances are recognised as regulatory deferral account debits or credits to reflect timing differences between cost incurrence and recovery.

FERV arising during the construction period is capitalised. However, exchange differences arising during the operational period, recoverable through tariff, are recognised as regulatory deferral account balances on an undiscounted basis and adjusted when they become recoverable or payable. Accordingly, Rs. (14.01) crore (previous year: Rs. (44.04) crore) has been adjusted from the Regulatory Deferral Account Debit Balance during FY 2025-26.

Further, interest on arbitration awards amounting to Rs. 59.47 crore (previous year: Rs. 28.52 crore), being recoverable through tariff, was recognised under Regulatory Deferral Account Balances. In addition, an amount of Rs. (109.99) crore (previous year: Nil), pertaining to O&M expenses and the impact of pay revision for NJHPS and RHPS for the tariff period 2019-24, was adjusted against the Regulatory Deferral Account Balance upon issuance of the truing-up orders by CERC.

Consequently, net regulatory income/(expenses) (net of tax) amounting to Rs. (53.26) crore was recognised in the Statement of Profit and Loss for FY 2025-26 as against Rs. (12.81) crore in the previous year.

Other Comprehensive Income

The Other Comprehensive Income (OCI) is on account of re measurement of net defined benefit liability/asset in respect of employee benefits. OCI net of tax for the FY 2025-26 is Rs. (8.05) crore as compared to Rs. (10.99) crore in FY 2024-25.

Cash Flows

Cash & cash equivalents and cash flows on various activities are given below:

(Rs. in crore)

Particulars	F.Y. 2025-26	F.Y. 2024-25
Opening cash & cash equivalent	40.51	256.73
Net cash from operating activities	1960.39	2175.71
Net cash generated / (used) in investing activities	73.02	(1719.05)
Net cash flow from financing activities	(1692.57)	(672.88)
Net increase/(decrease) in cash and cash equivalent	340.84	(216.22)
Closing cash and cash equivalents	381.35	40.51

Statement of cash flows include cash flows from operating, investing and financing activities.

Net cash generated from Operating Activities was Rs. 1960.39 crore during the year 2025-26 (Previous year Rs. 2175.71 crore). The decrease is mainly attributable to increase in trade receivables and higher income tax payment during the year as compared to previous year.

Cash inflow/ (outflow) on investing activities was Rs. 73.02 crore as compared to Rs. (1719.05) crore in the previous year. Cash outflow on investing activities is mainly on account of expenditure toward Property, Plant & Equipment, Capital Work in progress of new projects and investment in subsidiary companies etc. Cash inflow in investment activities arises from encashment of TDRs, interest from banks, dividend income from joint venture etc. There is decrease in investment in Property, Plant & Equipment and Capital Work in progress etc as compared to previous year by Rs. 41.17 crore (current year: Rs. 944.83 crore) (previous year: Rs. 986.00 crore). There is also a decrease in investment in subsidiary companies (including share application money) by Rs. 894.69 crore (current year Rs. 120.04 crore) (previous year: Rs. 1014.73 crore). Further, during the year cash outflow on account of loans extended to subsidiaries decreased by Rs. 247.33 crore in comparison to previous year (Current year: Rs. (45.71) crore) (Previous year: Rs. 201.62 crore).

During the year there is an increase in term deposits with banks by Rs. 592.36 crore as compared to previous year (current year Rs. 768.30 crore) (previous year Rs. 175.94 crore) and there is increase in interest income and Dividend from Joint Venture by Rs. 39.92 crore as compared to previous year (current year Rs. 324.75 crore) (previous year Rs. 284.83 crore).

During the year the net cash outflow of Rs. 1692.57 crore from financing activities (Previous year Rs. 672.88 crore) as detailed below:

Borrowings amounting to Rs. 234.13 crore was raised during the year as compared to Rs. 1151.43 crore during the previous year and borrowings amounting to Rs. 649.34 crore was repaid in the current year (Previous year Rs. 387.52 Crore). During the year, cash outflow on account of payment of dividend was Rs. 573.31 crore (Previous year: Rs. 707.24 crore). Interest & Finance charges paid during the year were Rs. 694.91 crore (Previous year: Rs. 722.34 crore).

B. Financial Position

The items of the Balance Sheet are as under:

1. ASSETS:

(I) Non-Current Assets

(Rs. in crore)

Particulars	As at March 31,
	2026	2025
Property, Plant and Equipment (Note 2.1)	7813.91	7978.63
Capital Work-in-progress (Note 2.2)	3522.69	3110.66
Intangible Assets (Note 2.3)	0.88	0.95
Intangible Assets Under Development (Note 2.4)	12.50	252.50
Financial Assets
- Investments (Note 2.5)	9166.22	8881.18
- Loans (Note 2.6)	774.19	812.96
- Others (Note 2.7)	49.28	296.80
Deferred Tax Assets(Net) (Note 2.8)	119.89	342.85
Other Non-Current Assets (Note 2.9)	881.10	907.72
Total	22340.66	22584.25

Non-Current Assets have decreased by 1.08 % to Rs.22340.66 crore (Previous year Rs. 22584.25 crore).

Property, Plant and Equipment (PPE)

PPE includes net block after depreciation in respect of land, buildings, roads & bridges, generating plant & machinery, other plant & machinery, electrical works, hydraulic works (such as dams, tunnels etc.), vehicles, electrical/office equipment, furniture/fixtures, data processing Equipment etc. Gross block of PPE during the year increased by Rs.465.62 crore to Rs.13035.77 crore (Previous year Rs.12570.15 crore). This increase is attributable to the acquisition, addition, and capitalisation of new assets during the year. However, net Block decreased by Rs.164.72 crore to Rs.7813.91 crore at the end of current year (Previous year Rs.7978.63 crore) due to depreciation charged & impairment recognised during the year, partially offset by the addition to the asset base. Capital Work-in-progress (CWIP)

Capital Work-in-progress during Current year registered an increase of 13.25% to Rs.3522.69 crore (Previous year: Rs.3110.66 crore). The increase in CWIP is primarily due to construction activities in ongoing hydroelectric projects such as Sunni Dam HEP, Dhaulasidh HEP and Luhri-1 HEP.

Intangible Assets

Net block of Intangible Assets at the end of Current year is Rs.0.88 crore (previous year Rs.0.95 crore) due to charging of depreciation on Intangible Assets during the year. Intangible Assets Under Development

Intangible Assets Under Development stood at Rs.12.50 crore as at 31 March 2026 as against Rs.252.50 crore as at 31 March 2025, reflecting a decrease of Rs.240.00 crore. The balance as at 31 March 2026 pertains to upfront fees paid for the Attunli Hydro Electric Project in Arunachal Pradesh, whereas the previous years balance also included upfront fees relating to the Etalin Hydro Electric Project (3,097 MW).

The decrease is mainly attributable to the reassignment of Etalin HEP to NHPC Limited by the Ministry of Power, Government of India, and the consequent termination of the Memorandum of Agreement (MoA) executed between the Government of Arunachal Pradesh and the Company for development of the project. Consequently, the assets and liabilities pertaining to Etalin HEP have been classified as Disposal Group Held for Sale in accordance with Ind AS 105 - Non-current Assets Held for Sale and Discontinued Operations.

Non-current Financial Assets Investments

Investments are intended for long-term holding and primarily comprises equity contribution in wholly owned Subsidiaries and a Joint Venture Company. Total Investments at the year end is Rs.9166.22 crore (Previous year: Rs.8881.18 crore). The increase in investments is due to infusion of equity in Subsidiary Companies, namely SJVN Lower Arun Power Development Company Pvt. Ltd. amounting to Rs.100.00 crore and SJVN Thermal Pvt. Limited amounting to Rs.185.04 crore.

Loans

Non-current loans are those which are expected to be realised beyond 12 months from the balance sheet date. These primarily include loans extended to subsidiary companies, and loans and advances given to employees at concessional rates. Loans at the end of current year is Rs.774.19 crore (Previous year Rs.812.96 crore).

Other Non-current Financial Assets

Other Non-current Financial Assets includes Bank Deposits with more than twelve months maturity including interest thereon and share application money paid to subsidiary companies. Other Non-current Financial Assets at the end of current year is Rs.49.28 crore (Previous year Rs.296.80 crore). The decrease is primarily due to the issue of shares by subsidiary companies during the year towards amount paid as share application money during the previous year.

Deferred Tax Assets (Net)

The net deferred tax assets decreased by Rs.222.96 crore to Rs.119.89 crore as on 31st March 2026 compared to Rs.342.85 crore in the previous year. The decrease in deferred tax asset in the Balance Sheet during the year is mainly on account of utilisation of MAT credit and changes in temporary differences between the book values of assets & liabilities and their corresponding tax bases during the year.

Net decrease in deferred tax assets amounting to Rs.222.96 crore during the year has been debited to statement of profit and loss (Previous year: Rs.86.65 crore).

Other Non-current Assets

Other non-current assets mainly comprise of advance tax & tax deducted at source (net of provision for tax), Capital Advances given to Contractors and govt departments/ organisations for capital works, and deferred employee benefits expense. Other non- current assets at the end of Current Year are Rs.881.10 crore (Previous year: Rs.907.72 crore).

(ii) Current Assets

(Rs. in crore)

Particulars	As at March 31,
	2026	2025
Inventories (Note 2.10)	83.03	83.27
Financial Assets
-T rade Receivables (Note 2.11)	1298.70	262.09
-Cash and Cash Equivalents (Note 2.12)	381.37	59.98
-Bank Balances Other than cash and cash equivalents (Note 2.13)	898.43	1584.46
-Loans (Note 2.14)	135.15	131.91
-Others (Note 2.15)	901.86	1306.09
Other Current Assets (Note 2.16)	115.96	105.71
Total	3814.50	3533.51

Current Assets as on 31st March 2026 has increased by 7.95 % to Rs.3814.50 crore (Previous year Rs.3533.51 crore).

Inventories

Inventories mainly comprise stores & spares which are maintained for operational power stations. Inventories are valued at lower of cost arrived at on weighted average basis and net realisable value. Inventories were valued at Rs.83.03 crore as on 31st March 2026 (Previous year: Rs.83.27 crore).

Financial Assets

Trade Receivables

Trade Receivables mainly comprise receivables on account of sale of energy and include unbilled revenue of Rs.906.24 crore as at 31 March 2026 as against Rs.136.46 crore as at 31 March 2025. Trade Receivables increased by Rs.1,036.61 crore from Rs.262.09 crore in the previous year to Rs.1,298.70 crore in the current year.

The increase is primarily attributable to a rise in unbilled revenue consequent upon receipt of the tariff order for truing-up of tariff for the period 2019-24 in respect of NJhPs, and the provisional tariff order for the period 2024-29 in respect of RHPS during the last week of March 2026. As the corresponding bills could not be raised before the close of the financial year, the amount remained recognised as unbilled revenue as at 31 March 2026 and was billed during FY 2026-27.

Cash & cash equivalents and Other bank balances

Cash & cash equivalents and other bank balances comprise mainly balances in Term Deposits and current account.

Cash & cash equivalents and other bank balances during the current year have decreased by Rs.364.64 crore to Rs.1279.80 crore (Previous year Rs.1644.44 crore).

Cash & cash equivalents and other bank balances are 33.55% of current assets as on 31st March 2026 (Previous year: 46.54%)

Loans

Short-term loans as on 31st March 2026 have increased by Rs.3.24 crore to Rs.135.15 crore as compared to Rs.131.91 crore at the end of the previous year. This increase is mainly due to additional short-term loans extended to subsidiary companies.

Other Financial Assets

Other financial assets include interest accrued but not due on deposits with Banks, amount recoverable from Contractors & Suppliers, Government Departments and amount receivable from subsidiaries and joint ventures etc. Other financial assets decreased by Rs.404.23 crore to Rs.901.86 crore during current year (Previous year Rs.1306.09 crore). The decrease is primarily attributable to a reduction in the amount receivable from subsidiary companies on account of transfer of projects to them and reclassification of certain balances as Contract Assets, which were previously classified as unbilled revenue under Trade Receivables.

Other Current Assets

Other Current Assets mainly comprise prepaid expenses and advances to Government Departments other than capital advances. Other Current Assets increased by Rs.10.25 crore from Rs.105.71 crore as at 31 March 2025 to Rs.115.96 crore as at 31 March 2026.

The increase is primarily attributable to a higher balance of prepaid expenses as at 31 March 2026 compared to the previous year.

Assets Held for Sale

Assets Classified as Held for Sale stood at Rs.736.97 crore as at 31 March 2026 as against Nil in the previous year. The balance represents assets pertaining to the Etalin Hydro Electric Project (3,097 MW), which have been classified as a Disposal Group Held for Sale in accordance with Ind AS 105 - Non-current Assets Held for Sale and Discontinued Operations. The classification follows the reassignment of Etalin HEP to NHPC Limited by the Ministry of Power, Government of India, and the consequent termination of the Memorandum of Agreement (MoA) executed between the Government ofArunachal Pradesh and the Company for development of the project.

Regulatory Deferral Account Debit Balance

Regulatory deferral account debit balances represent the portion of expenses recognised in the Statement of Profit and Loss and which are recoverable from the beneficiaries in future tariff periods, in accordance with the CERC Tariff Regulations and accounted for as per the provisions of Ind AS 114 - Regulatory Deferral Accounts Regulatory deferral account balances are adjusted from the year in which the same become recoverable from or payable to the beneficiaries.

Regulatory deferral account balances include foreign exchange rate variation on foreign currency loans and interest on arbitration awards and similar items. Regulatory deferral account debit balance as on 31st March 2026 was Rs.704.30 crore (Previous year: Rs.768.83 crore). The decrease is mainly due to adjustment of regulatory assets on account of O&M expenses and impact of pay revision by Rs.20.54 crore & Rs.89.45 crore respectively upon receipt of the tariff order for truing-up of tariff for the period 2019-24 in respect of NJHPS & RHPS, and decrease in foreign exchange variation recoverable by Rs.14.01 crore, which was partially offset by an increase of Rs.59.47 core in interest on arbitration awards during the year.

2. EQUITY AND LIABILITIES

(i) Total Equity

Total Equity of the Company at the end of the financial year 2025-26 has increased to Rs.14708.20 crore from Rs.14282.10 crore in the previous year registering an increase of 2.98% as per details given below:

(Rs. in crore)

Particulars	Total Equity
Opening balance as on 01.04.2025	14282.10
Add: Profit for the year	1007.90
Add/(Less): Other Comprehensive Income/(Loss)	(8.05)
Less: Dividend paid	573.75
Closing balance as on 31.03.2026	14708.20

The increase in total equity resulted in increase in the book value per share to Rs.37.43 as on 31st March 2026 (Previous year Rs.36.34 per share).

(ii) Non-current financial liabilities

(Rs. in crore)

Particulars	As at March 31,
	2026	2025
Borrowings (note no. 2.21)	6012.85	9840.25
Lease liabilities (note no. 2.22)	88.32	10.67
Provisions (note no. 2.23)	145.76	139.92
Other non-current liabilities (note no. 2.24)	638.27	670.83
Total	6885.20	10661.67

Borrowings

Total borrowings as on 31st March 2026 including current maturities and interest accrued but not due on long term borrowings were Rs.10502.55 crore as against Rs.10437.99 crore as on 31st March 2025. Current maturities of long-term borrowings have been shown under current financial liabilities (Borrowings) and interest accrued but not due on borrowings have been shown under other current financial liabilities. Details of total borrowings are as under:

(Rs. in crore)

Particulars	As at March 31, 2026	As at March 31, 2025
Non-current Borrowings (note no. 2.21)	6012.85	9840.25
Current maturities of non-current borrowings i ncluded in current financial liabilities (borrowings) (note no.2.25)	4442.79	544.32
Interest Accrued but not due on Borrowings (note no. 2.28)	46.91	53.42
Total Borrowings	10502.55	10437.99

Borrowings excluding current maturities and interest accrued but not due on long term debts have registered a decrease of 38.90 % amounting to Rs.3827.40 crore. Total non-current borrowings as on 31st March 2026 are Rs.6012.85 crore (previous year Rs.9840.25 crore). Details of non-current borrowings are as under:

Bonds/Debentures :-

The company has issued 6.10% p.a. unsecured non-convertible redeemable bonds of Rs.1000000/- each redeemable at face value. The outstanding amount including accrued interest as on 31st March 2026 was Rs.1030.75 crore which is redeemable during the financial year 2026-27 and has been shown under Current Financial Liabilities- Borrowings (Note No. 2.25) and Other Financial Liabilities (Note No. 2.28) respectively (previous year: Rs.1030.75 crore).

Rupee Term Loans:

Total outstanding rupee term loans drawn from domestic banks and other financial institutions including current maturities and interest accrued but not due as on 31st March 2026 were Rs.5154.25 crore (previous year Rs.5083.31crore).

Foreign currency borrowings:

Foreign currency borrowings are from PNB, World Bank and Japan Bank of International Cooperation. Total outstanding as on 31st March 2026 was Rs.4317.55 crore (Previous year: Rs.4323.93 crore).

The debt-to-equity ratio (inclusive of Short-Term Borrowings and accrued interest) at the end of financial year 2025-26 of the company is 0.71 (previous year 0.74). Non-current lease liabilities

The lease liabilities are on account of present value of lease rentals payable over the period of lease in respect of assets taken on lease by the company. The lease liabilities have been measured at the present value of the remaining lease payments. Lease liabilities increased by Rs.77.65 crore to Rs.88.32 crore on account of land lease executed in respect of Dhaulasidh Hydro Electric project (Previous year : Rs.10.67 crore). Non-current Provisions

Non- current Provisions are on account of long-term employee benefits provided on the basis of actuarial valuation and includes leave encashment and Other Retirement Benefits which are expected to be settled beyond a period of twelve months from the balance sheet date. Non-current provisions increased by Rs.5.84 crore to Rs.145.76 crore during current year (Previous year Rs.139.92 crore).

(iii) Other Non-current Liabilities

Other non-current liabilities include income received in advance on account of Advance Against Depreciation (AAD) in accordance with CERC regulations, government grants, and deferred income arising from foreign currency fluctuations.

Other non-current liabilities have registered a decrease of Rs.32.56 crore to Rs.638.27 crore compared to Rs.670.83 crore in the previous year. This decrease is mainly due to the transfer of AAD amounting to Rs.32.25 crore to current liabilities, as the same is adjustable within 12 months from the balance sheet date.

(iv) Current financial liabilities:

(Rs. in crore)

Particulars	As at March 31,
	2026	2025
Borrowings (note no.2.25)	4442.81	663.49
Lease liabilities (note no. 2.26)	6.06	4.91
Trade payables (note no. 2.27)	38.92	44.39
Other financial liabilities (note no. 2.28)	728.93	610.71
Other current liabilities (note no. 2.29)	55.55	46.26
Provisions (note no. 2.30)	653.34	573.06
Current Tax Liabilities (net) (note no. 2.31)	76.49	-
Total	6002.10	1942.82

The Current Liabilities as on 31st March 2026 and 31st March 2025 were Rs.6002.10 crore and Rs.1942.82 crore respectively. The Current Liabilities have increased Rs.4059.28 crore mainly due to increase in current maturities of long-term borrowings.

Borrowings

Borrowings stood at Rs.4,442.81 crore as at 31 st March 2026 as against Rs.663.49 crore as at 31st March 2025, registering an increase of Rs.3,779.32 crore. The outstanding balance as at 31st March 2026 comprises short-term loans/overdraft from banks amounting to Rs.0.02 crore (Previous year: Rs.119.17 crore) and current maturities of long-term borrowings amounting to Rs.4,442.79 crore (Previous year: Rs.544.32 crore).

The significant increase in borrowings is primarily attributable to higher current maturities of long-term debt falling due within twelve months from the balance sheet date.

Current Lease Liabilities

Lease liabilities represent the amount of lease payments payable within the next twelve months. As on 31st March 2026, lease liabilities stood at Rs.6.06 crore, compared to Rs.4.91 crore in the previous year.

Trade Payables

Trade Payables comprise liabilities arising in respect of goods purchased and services received in the normal course of business operations, excluding liabilities relating to acquisition or construction of property, plant and equipment. Trade Payables stood at Rs.38.92 crore as at 31 March 2026 as against Rs.44.39 crore as at 31 March 2025, reflecting a decrease of Rs.5.47 crore.

Other current financial Liabilities

Other Financial Liabilities primarily comprise interest accrued but not due on borrowings, liabilities towards employee remuneration and benefits, liabilities relating to purchase/construction of fixed assets, deposits, retention money from contractors and other miscellaneous liabilities. Other Financial Liabilities stood at Rs.728.93 crore as at 31 March 2026 as against Rs.610.71 crore as at 31 March 2025, registering an increase of Rs.118.22 crore.

The increase is primarily attributable to higher outstanding liabilities relating to purchase/construction of fixed assets as at 31 March 2026 compared to the previous year.

Other Current Liabilities

Other Current Liabilities mainly comprise current liability towards Advance Against Depreciation (AAD), advances from customers, and TDS and other taxes payable. Other Current Liabilities stood at Rs.55.55 crore as at 31 March 2026 as against Rs.46.26 crore as at 31 March 2025, registering an increase of Rs.9.29 crore.

The increase is primarily attributable to higher outstanding balances of advances from customers as at 31 March 2026 as compared to previous year.

Provisions

Short Term Provisions include unfunded employees benefits payable within twelve months as per actuarial valuation, interest on arbitration awards and Performance Related Pay (PRP) etc. Provisions have increased by Rs.80.28 crore in the FY 2025- 26 to Rs.653.34 crore (Previous year Rs.573.06 crore). This increase is mainly due to increase of provision for interest on arbitration awards.

Current Tax Liabilities (net)

Current Tax Liabilities comprise the excess of current tax provision over advance tax and tax deducted at source (TDS). Current Tax Liabilities stood at Rs.76.49 crore as at 31 March 2026 as against Nil as at 31 March 2025. The balance represents the net current tax liability arising after adjustment of advance tax and TDS against the tax provision for the year.

Liabilities included in disposal group held-for-sale

Liabilities included in Disposal Group Held for Sale stood at Rs.0.93 crore as at 31 March 2026 as against Nil in the previous year. The balance represents liabilities pertaining to the Etalin Hydro Electric Project (3,097 MW), which have been classified as a Disposal Group Held for Sale in accordance with Ind AS 105 - Noncurrent Assets Held for Sale and Discontinued Operations. The classification follows the reassignment of Etalin HEP to NHPC Limited by the Ministry of Power,

Government of India, and the consequent termination of the Memorandum of Agreement (MoA) executed between the Government of Arunachal Pradesh and the Company for development of the project.

C. Contingent liabilities (note no. 2.50)

The following are the components of claims against the company not acknowledged as debt:

(Rs. in crore)

Particulars	As at 31.03.2026	As at 31.03.2025
Capital Works	551.80	288.17
Land Compensation	105.28	25.06
Disputed Income Tax Demand	98.35	89.74
Guarantees	4442.24	3421.41
Water Cess	280.19	280.19
Damage compensation in project affected areas	182.96	--
Levy of Land Revenue	32.67	--
Others	13.56	--
Total	5707.05	4104.57

Contingent Liabilities increased by Rs.1602.48 crore to Rs.5707.05 crore as 31st March 2026 as compared to Rs.4104.57 crore in the previous year. The increase is primarily attributable to a corporate guarantee provided by the Company in respect of a loan availed by a subsidiary company.

D. Key Financial Ratios on Standalone Basis

Sr. No. Particulars	Numerator	Denominator	March 31,2026	March 31,2025	Variance (%)
1 Current Ratio	Current Assets	Current Liabilities	0.64	1.82	(64.84)
2 Debt-Equity Ratio	Paid up debt capital	ShareholdersRs. Equity	0.71	0.74	(4.05)
3 Debt-Service Coverage Ratio	Profit before tax +Finance Costs +Depreciation+ Exceptional items	Finance Costs+ Lease Payments+ Scheduled principal repayments of long term borrowings during the year	2.17	2.08	4.33
4 Interest- Service Coverage Ratio	Profit before tax +Finance Costs +Depreciation+ Exceptional items	Finance Costs	3.48	3.41	2.05
5 Return on Equity Ratio	Net profit for the year	Average Shareholders Equity	6.95%	6.85%	1.46
6 Inventory Turnover Ratio	Revenue From Operations	Average Inventory	42.63	35.10	21.45
7 Trade Receivables Turnover Ratio	Revenue From Operations	Average Trade Receivables	4.54	6.62	(31.42)
8 Operating Profit Margin	Earnings before interest, tax and exceptional items	Revenue from operations	71.67%	69.81%	2.66
9 EBITDA		(Rs. in crore)	3107.52	2461.55	26.24
10 EBITDA Margin	EBITDA	Revenue From Operations	87.67%	84.96%	3.19
11 Net profit ratio	Profit for the year	Revenue From Operations	28.44%	33.49%	(15.08)
12 Return on Capital Employed	Earning Before Interest, Tax and Exceptional Items	Shareholders Equity + Paid up Debt Capital	10.08%	8.14%	23.74

Current Ratio

The decrease in current ratio as on 31.03.2026 to 0.64 as compared to 1.82 as on 31.03.2025 is attributable to long-term borrowing maturing during the year which are part of current liabilities.

Trade Receivables Turnover Ratio

The decrease in the trade receivables turnover ratio during the year ended 31.03.2026 to 4.54 as compared to 6.62 during the year ended 31.03.2025 is primarily due to higher trade receivables arising from receipt of the tariff order for truing-up of tariff for the period 2019-24 in respect of NJHPS & RHPS and provisional tariff order for the period 2024-29 in respect of RHPS

EBITDA

The increase in EBITDA during the year ended 31.03.2026 to Rs.3107.52 crore as compared to Rs.2461.55 crore during the year ended 31.03.2025 is on account of higher revenue from operations on account of receipt of the tariff order for truing-up of tariff for the period 2019-24 in respect of NJHPS & RHPS and provisional tariff order for the period 2024-29 in respect of RHPS.

E. Business and financial review of Subsidiary & Joint Venture Companies

1. Subsidiary Companies:

As at 31 March 2026, the Company has five subsidiary companies, of which four are wholly owned subsidiaries. Three subsidiaries are presently in the construction phase. The remaining two subsidiaries, namely SJVN Green Energy Limited (SGEL) and SJVN Thermal Private Limited, are in the operational stage. SGEL has seven operational renewable energy projects with an aggregate installed capacity of 1,460 MW, while one unit of 660 mW of the 1,320 MW Buxar Thermal Power Project in Bihar being developed by SJVN Thermal Private Limited commenced commercial operation during the third quarter of FY 2025-26.

The performance of the subsidiaries is as under:

(i) SJVN Thermal Pvt. Ltd.

SJVN Thermal Private Limited (STPL), a wholly owned subsidiary of SJVN Limited, is implementing the 1,320 MW (2 x 660 MW) Buxar Thermal Power Project in Bihar. During FY 2025-26, the first unit of 660 MW out of the two units comprising the 1,320 commenced commercial operation during the third quarter of the FY 2025-26. Total paid up equity share capital as on 31st March 2026 is Rs.3131.72 crore (Previous year Rs.2946.68 crore). Total Assets as on 31st March,2026 was Rs.13499.86 crore (Previous Year: Rs.11385.07 crore). Total income of for the FY 2025-26 was Rs.522.09 crore (Previous Year: Rs.0.02 crore) and profit after tax was Rs.(92.84) crore (Previous Year: Rs.(2.18) crore).

(ii) SJVN Arun 3 Power Development Company Pvt. Ltd.

SJVN Arun 3 Power Development Company Pvt. Ltd. was incorporated in Nepal as a wholly owned subsidiary company of SJVN Ltd on 25th April 2013. The authorized share capital of the company is Rs.2714.35 crore (NPR 4342.96 crore). Presently the company is executing the 900MW Arun-3 Hydroelectric Project in Nepal which is under construction. This project is to be installed in the Sankhuwasabha District of Nepal. Total paid up equity capital as on 31st March 2026 is Rs.2105.41 crore (Previous year: Rs.2105.41 crore). Total Assets as on 31st March 2026 is Rs.7131.30 crore (Previous Year: Rs.6068.29 Crore). Total income of for the FY 2025-26 was Rs.1.18 crore (Previous Year: Rs.2.25 crore) and profit after tax was Rs.(1.31) crore (Previous Year: Rs.(0.49) crore).

(iii) SJVN Green Energy Ltd.

SJVN Green Energy (SGEL) was incorporated in India on 30th March, 2022. The authorised share capital of the company is Rs.5000 crore. The purpose of formation of SGEL is to have a focussed approach for expanding/managing the renewal energy portfolio (other than hydro) of SJVN group.

Seven projects of SGEL of 1460 MW are in commercial operation and revenue of Rs.469.58 crore (Previous year Rs.180.72 crore) has been earned. Total paid up equity share capital as on 31st March 2026 is Rs.3800.00 crore (Previous year: Rs.3800.00 crore). Total Assets as on 31st March 2026 is Rs.14060.72 crore (Previous year: Rs.12281.04 crore). Total income of for the FY 2025-26 was Rs.508.31 crore (Previous Year: Rs.230.35 crore) and profit after tax was Rs.(257.36) crore (Previous Year: Rs.(147.68) crore).

(iv) SJVN Lower Arun Power Development Company Pvt. Ltd.

SJVN Lower Arun Power Development Company Pvt. Ltd. incorporated in Nepal on 26th May 2023. The authorised share capital of the company is Rs.1737.71 crore. The purpose of formation of the company is for development and execution of Lower Arun Hydro Power Project and other Power Projects in Nepal. Total paid up equity share capital as on 31st March 2026 is Rs.100 crore (Previous year: Nil). Total assets of the company as on 31st March 2026 is Rs.172.31 crore (Previous year: Rs.150.51 crore). Total income of for the FY 2025-26 was Rs.0.12 crore (Previous Year: Rs.1.36 crore) and profit after tax was Rs. 0.07 crore (Previous Year: Rs.1.01 crore).

(v) SGEL Assam Renewal Energy Limited

SGEL Assam Renewal Energy Limited has been incorporated on 18th April 2024 as a subsidiary of SJVN Green Energy Limited. Total paid up equity share capital as on 31st March 2026 is Rs.25.00 crore (Previous year: Rs.25.00 crore) . Total Assets as on 31st March 2026 is Rs.25.19 crore (Previous Year: Rs.23.85 crore). Total income of for the FY 2025-26 was Rs.1.67 crore (Previous Year: Rs.1.24 crore) and profit after tax was Rs.(0.47) crore (Previous Year: Rs. (3.33) crore).

2. Joint Venture Company

Cross Border Power Transmission Company Limited

Cross Border Power Transmission Company Limited (CPTC) is a joint venture of SJVN Ltd, Power Grid Corporation of India Ltd. (PGCIL) and Nepal Electricity Authority (NEA). As on 31st March 2026, the Company holds a 41.94% equity interest in Cross Border Power Transmission Company Limited (CPTC) with total investment of Rs.27.34 crore (Previous year: Rs.27.34 crore).

The performance of the Joint Venture company is as under:

The Company is principally engaged in establishment, operation & maintenance of Indian Portion of Indo-Nepal Cross Border Transmission Line from Muzaffarpur to Dhalkebar.

The total income and PAT during the year 2025-26 are Rs.28.59 crore (previous year Rs.30.36 crore) and Rs.17.61 Crore (previous year Rs.21.12 crore) respectively.

F. Consolidated Financial Statements of SJVN Ltd.

The consolidated financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS-110)- Consolidated financial Statements Ind AS-28 - Investments in Associates and Joint Ventures, Ind AS112- Disclosure of Interests in other entities and are included in the Annual Report.

The financial statements of the Company and its subsidiaries have been consolidated on a line-by-line basis by aggregating similar items of assets, liabilities, income, and expenses, after eliminating intra-group balances, intra-group transactions, and any unrealised profits or losses. The joint venture company has been accounted for using the equity method of consolidation, in accordance with the applicable Ind AS.

A summary of the results on a consolidated basis is given below:

(Rs. in crore)

Particulars	F.Y. 2025-26	F.Y. 2024-25
Total Revenue	4722.81	3376.50
Profit before Tax	1200.63	1111.69
Profit after Tax	641.85	818.02
Other Comprehensive Income (net of tax)	(8.14)	(11.03)
Total Comprehensive Income	633.71	806.99

For and on behalf of Board of Directors

	Sd/-
	(Bhupender Gupta)
Date: 31.07.2026	Chairman & Managing Director
Place: New Delhi	DIN : 06940941