Vedanta Power Q1 Earnings And Results: Revenue Rises 31% To ₹2,607 Crore

Vedanta Power reported a strong start to FY27 in its first quarterly results as a standalone listed company, with revenue rising 31% year-on-year to ₹2,607 crore. The growth was supported by a 38% increase in power sales to 5,224 million units, reflecting improved generation across its power plants. The company also strengthened its long-term business position through higher fuel security, improved credit ratings and continued investments in operational efficiency.

Vedanta Power Q1 earnings increased to ₹2,607 crore in the June quarter from ₹1,981 crore a year earlier, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at ₹291 crore. The company said its revenue was impacted by the Sakti boiler incident during the quarter. Still, it maintained a strong liquidity position, with cash and cash equivalents of ₹1,130 crore, which gives it financial flexibility for future expansions.

Vedanta Power Q1 FY27: Key Highlights

Power sales increased 38% year-on-year to 5,224 million units. Around 74% of total power sales are now secured under long-term and medium-term power purchase agreements with state distribution companies in Punjab, Odisha, Tamil Nadu and Kerala, improving revenue visibility.

Vedanta Power has a total installed capacity of 4,180 MW with thermal plants in Punjab, Andhra Pradesh, Odisha, and Chhattisgarh. About 85% of the operational capacity is backed by long-term coal linkages from Mahanadi Coalfields Limited (MCL), South Eastern Coalfields Limited (SECL) and Northern Coalfields Limited (NCL), which help stabilise coal supply and reduce fuel cost risks.

Among its assets, Meenakshi Energy Limited delivered its highest-ever quarterly EBITDA of ₹112 crore, up 20% sequentially, while electricity sales increased 16% quarter-on-quarter to 1,350 million units. The company is also progressing towards using 100% domestic coal at the plant, which is expected to improve margins and reduce exposure to geopolitical risks.

Moreover, the corporate entity underwent several credit rating upgrades during the period. CRISIL elevated its ratings to AA+ (CRISIL)/A3. At the same time, ICRA enhanced the company's rating to AA-/A1+, which shows greater credit quality and better financial stability. Vedanta Power also raised ₹300 crore through commercial paper at an interest rate of 8.25%.

Management Commentary And Market Reaction

Looking ahead, Vedanta Power said the 600 MW Unit 2 at its Sakti Thermal Power Plant remains on track for commissioning. The company also plans to expand its thermal power capacity to 12 GW over the medium term, while evaluating captive coal opportunities to support future growth.

At the close of trading on 29 July, Vedanta Power's share price had reached ₹35.32 on the National Stock Exchange.

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