01 — At a Glance
When a Power Company Runs Out of Power
- 52-Week High / Low₹27.7 / ₹12.5
- Q3 FY26 Revenue₹1,156 Cr
- Q3 FY26 PAT₹3.77 Cr
- Q3 EPS (₹)0.01
- Annualised EPS (Q3×4)₹0.04
- Book Value₹18.6
- Price to Book0.75x
- Debt (Total)₹3,519 Cr
- Debt / Equity0.28x
- 1-Year Return+3.35%
The Q3 Shocker: Revenue ticked up 1.35% YoY to ₹1,156 crore. Nice. PAT? Down 97% to ₹3.77 crore from ₹126.68 crore. Even less nice. OPM collapsed from 25.43% to 15.02%. Rating agencies placed the stock on “Watch Negative.” The Chairman surrendered to authorities after his bail expired. And management is still claiming “business as usual.” Ladies and gentlemen, this is not business as usual. This is business in the middle of an actual investigation.
02 — Introduction
A 2,220 MW Power Play That Lost Power
Jaiprakash Power Ventures. Incorporated 1994. Sounds like a company that was there when the internet was still on dial-up and power plants were supposed to make money. Spoiler alert: they still are. The company runs 2,220 MW of installed capacity across three sites — hydro in Uttarakhand, thermal in Madhya Pradesh (two units, mind you) — and a coal mine to feed the beast.
For the uninitiated: power companies are boring. They sell electrons to state distribution companies at negotiated tariffs. The PLF (Plant Load Factor) matters. The PPA (Power Purchase Agreement) matters. Whether receivables come in on time matters. Whether your promoter gets arrested by the Enforcement Directorate matters a lot.
Q3 FY26 was supposed to be a routine quarter. Instead, it became a case study in how one regulatory action can move a stock from “maybe I’ll hold” to “why am I even holding this.” PAT cratered. The Chairman surrendered to authorities. Credit rating agencies flipped the switch to “negative watch.” NCLT filings started flying. And the stock? Down 26.5% in the past six months. The energy sector isn’t supposed to move like this. Unless the energy company is being investigated by energy-level authorities.
The Timeline So Far (Feb-Mar 2026): Nov 13, 2025 — Chairman Manoj Gaur arrested by ED under PMLA for alleged offences linked to Jaypee Infratech and promoter JAL. Jan 24, 2026 — Released on interim bail. Feb 19, 2026 — Surrendered as interim bail expired. Feb 27, 2026 — NARCL filed NCLT Section 7 insolvency petition for ₹511.73 crore default on corporate guarantee. Mar 11, 2026 — CRISIL placed rating on watch negative. The dominoes started falling and nobody knows when they stop.
03 — Business Model: Power Broker (Literally)
How to Monetize Falling Water and Burnt Coal
Jaiprakash Power’s business model is refreshingly simple: generate electrons, sell them. The company operates three power plants — a 400 MW hydro facility at Vishnuprayag (Uttarakhand), a 500 MW thermal unit at Bina (MP), and a 1,320 MW thermal facility at Nigrie (MP). Capacity? Check. Coal supply? Check (captive mine at Amelia producing 3.92 MTPA). PPA security for 56% of capacity? Check. The remaining 44% sold in short-term merchant markets.
Revenue split used to be straightforward: power contributes ~77%, coal mining ~9%, sand mining ~14%. But sand mining became complicated in 2023 when the Andhra Pradesh Department of Mines issued show-cause notices alleging illegal extraction worth ₹7,167 crore. The High Court stayed ₹2,147 crore. The company filed replies for the balance. Status: evolving litigation. Not helpful for investor confidence.
The model works when three conditions hold: (1) Plants run at healthy PLF, (2) Receivables from discoms arrive on time, (3) The promoter doesn’t become a flight risk to an investigation agency. Guess which condition failed in Q3 FY26?
Vishnuprayag400 MWHydro. Since 2007
Bina Thermal500 MWSince 2012
Nigrie Thermal1,320 MWSince 2014-15
The Debt Story (The Sad One): The company underwent massive debt restructuring in April 2019, reducing total debt from ₹11,149 crore to ₹5,164 crore by Sept 2021. As of Sept 2025, it’s down to ₹3,519 crore. Interest coverage is 3.46x — healthy for a power utility. But with NCLT petitions pending and the promoter in custody, lenders are nervously checking their collateral valuations.
💬 Would you take a 0.75x book value stock of a power company under NCLT investigation? And more importantly — why or why not?
04 — Financials Overview
Q3 FY26: The Numbers That Don’t Make Sense Anymore
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