At a Glance

Jaiprakash Power Ventures Ltd (JP Power) posted a Q1 FY26 profit of ₹278 Cr, a 20% decline YoY, with revenue at ₹1,583 Cr (-10% YoY). Operating margins remain strong at 38%, but the market’s enthusiasm is muted. Stock at ₹21.4 trades at P/E ~20 – not crazy, but promoters still have 73% shares pledged. So, is this a turnaround story or a candle burning from both ends?

Introduction

Remember JP Power from the days of infrastructure euphoria? Once a rising star, it got buried under debt. Now, after years of deleveraging and asset sales, the company is stabilizing with coal, sand mining, and power generation. Q1 results show resilience in OPM but falling sales and profit. Is this the long-awaited comeback or another false dawn?

Business Model (WTF Do They Even Do?)

JP Power operates across:

• Hydropower (400 MW Vishnuprayag)
• Thermal Power (500 MW Jaypee Bina, 1,320 MW Jaypee Nigrie)
• Mining – coal & sand.
• Cement Grinding – smaller segment.

Revenue mix is dominated by thermal power (>70%), with hydropower providing steady cash. Risks? High leverage, regulatory price caps, and pledged promoter shares.

Financials Overview

Q1 FY26 Snapshot:

• Revenue: ₹1,583 Cr (-9.7% YoY)
• Operating Profit: ₹601 Cr (OPM 38%)
• Net Profit: ₹278 Cr (-20% YoY)
• EPS: ₹0.41

FY25 was mixed – revenue ₹5,462 Cr (-19%), PAT ₹814 Cr (-20%).

Valuation

1. P/E Method

• EPS FY25: ₹1.19
• Sector P/E: 15
• Fair Value = 1.19 × 15 = ₹18

2. EV/EBITDA

• EBITDA FY25: ₹1,855 Cr
• Multiple: 8×
• EV ≈ ₹14,800 Cr → per share ≈ ₹20

3. DCF (low growth, 12% discount)

• Range: ₹16 – ₹22

Current ₹21.4 → fairly valued, no crazy upside.

What’s Cooking – News, Triggers, Drama

• Debt continues to reduce, borrowings at ₹3,778 Cr (FY25).
• SEBI fine dispute over director age non-compliance.
• Power demand rising, may benefit tariffs.
• Promoter pledges remain a sword of Damocles.

Balance Sheet

Commentary: Lower debt, but pledged shares tell the real story.

Cash Flow – Sab Number Game Hai

Commentary: Operating cash healthy, but outflows to service debt.

Ratios – Sexy or Stressy?

Commentary: Moderate returns, no dividend – pure capital appreciation play.

P&L Breakdown – Show Me the Money

Commentary: FY24 peak, FY25 slowdown, Q1 FY26 slightly better.

Peer Comparison

Commentary: JP Power is cheap vs private peers, but far smaller in scale.

Miscellaneous – Shareholding, Promoters

• Promoters: 24% (73% pledged!)
• FIIs: 6.3% (stable)
• DIIs: 17.3% (slightly falling)
• Public: 52.4% (rising)

The pledge remains the biggest overhang.

EduInvesting Verdict™

JP Power’s Q1 FY26 results show strong margins but falling profits. The company’s deleveraging story is intact, but growth is modest. Pledged shares and governance concerns limit re-rating. For traders, it’s a range play; for investors, only worth a look if pledges reduce and power demand keeps climbing.

Past Performance

• From debt-ridden infra player to a steady power generator.
• Recovery ongoing but not spectacular.

Headwinds

• Pledged promoter shares.
• Regulatory risks.
• Sluggish sales growth.

SWOT

Strengths: Established plants, improving cash flows.
Weaknesses: Low ROE, high pledge.
Opportunities: Rising power demand, tariff hikes.
Threats: Policy changes, coal supply volatility.

Final Word

JP Power is like a dim tube light – flickering but not dead. Q1 FY26 proves it still has juice, but until promoters untangle those pledges, investors should keep their voltage stabilizers ready.

Written by EduInvesting Team | 30 July 2025
SEO Tags: JP Power, Thermal Power, Hydropower, Q1 FY26 Results