Is JP Power Debt Free? A Look at Its FY25 Financials

Jaiprakash Power Ventures Ltd (NSE: JPPower) has been gaining attention for the past few days. JP Power share price surged over 17% to ₹22.25 in Monday’s intraday trade on the BSE, following media reports that the Adani Group has emerged as the highest bidder to acquire Jaiprakash Associates (JP Associates).

On July 8, 2025, the share price hit its 52-week high at ₹23.84 on the NSE. This development has renewed investor interest in JP Power and brought its financials, especially its debt situation, into sharp focus.

Is JP Power Debt-Free?

Despite the rally, JP Power is not a debt-free company. It continues to carry a considerable amount of debt on its books, which has been a long-standing concern.

As of March 31, 2025, Jaiprakash Power Ventures Ltd (JP Power) reported total debt of ₹3,76,562 lakh, which includes both long-term and short-term borrowings along with current maturities of long-term debt. This marks a decline from ₹4,24,179 lakh in the previous year.

After accounting for cash and bank balances of ₹1,55,557 lakh (up from ₹95,174 lakh as of March 31, 2024), the company’s net debt stood at ₹2,21,005 lakh in FY25, showing a notable reduction from ₹3,29,005 lakh in FY24.

Financial Snapshot

In Q4 FY25, JP Power reported a sharp 73% y-o-y decline in net profit to ₹155.7 crore, compared to ₹588.8 crore a year ago. Total income fell to ₹1,366.7 crore from ₹1,863.6 crore. For FY25, net profit dropped to ₹813.6 crore from ₹1,021.9 crore in FY24.

JP Power has extended a corporate guarantee of $1500 lakh for JP Associates' external borrowing from SBI. This loan has since been converted into a rupee-denominated term loan. The guarantee remains a contingent liability, adding potential financial exposure.

Also Read: What Led to Jaiprakash Associates Insolvency Proceedings?

Conclusion

JP Power isn’t debt-free, but it has made notable progress in reducing its debt year-on-year. While profitability has softened, the company’s liquidity buffer trims its net debt significantly. Watch for developments related to its corporate guarantee and broader earnings performance moving forward.

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