Financial Performance Overview

Vedanta Power Limited announced its unaudited consolidated and standalone financial results for the first quarter ended June 30, 2026 (Q1 FY27). The company reported revenue from operations of ₹2,595 Crores, representing a 31% year-on-year (YoY) increase from ₹1,981 Crores in Q1 FY26. This growth was driven by power sales of 5,224 million units (MUs), a 38% YoY increase from 3,784 MUs in Q1 FY26.

EBITDA for the quarter stood at ₹291 Crores, compared to ₹417 Crores in Q1 FY26 and ₹594 Crores in Q4 FY26. The company reported a PAT/(loss) before exceptional items of (₹59) Crores, and after exceptional items (net of tax) of (₹364) Crores, the PAT/(loss) was (₹423) Crores for Q1 FY27.

Operational and Business Metrics

Power realizations were ₹5.0/kWh in Q1 FY27, compared to ₹4.9/kWh in Q1 FY26 and ₹5.2/kWh in Q4 FY26. Power costs were ₹4.4/kWh in Q1 FY27, compared to ₹3.8/kWh in Q1 FY26 and ₹4.1/kWh in Q4 FY26.

The company maintained a diversified portfolio with four power plants:

  • Talwandi Sabo Thermal Plant (TSTP) in Punjab: 1980 MW capacity
  • Meenakshi Energy Limited (MEL) in Andhra Pradesh
  • Jharsuguda Independent Power Plant in Odisha: 600 MW capacity
  • Sakti Thermal Power Plant in Chhattisgarh

Total operational capacity stands at 4180 MW, with an additional 600 MW under commissioning at Sakti. The company is India's fifth-largest private sector thermal power producer.

Segment Performance

Meenakshi Energy Limited (MEL): Achieved its highest-ever quarterly EBITDA of ₹112 Crores, representing a 20% quarter-on-quarter (QoQ) increase. Power sales were 1,350 MUs, up 16% QoQ. The facility is transitioning from imported to 100% domestic coal.

Talwandi Sabo Thermal Plant (TSTP): Plant Availability Factor (PAF) improved to 86% from 77% in Q1 FY26. The plant achieved the highest biomass co-firing in Punjab at nearly 8%, avoiding 1.37 Lac TCO² emissions. Ash revenues more than doubled on a YoY basis.

Financial Position and Liquidity

The company maintained a healthy liquidity position with ₹1,130 Crores in cash and cash equivalents at the consolidated level as of June 30, 2026.

Net debt movement for Q1 FY27:

  • Standalone: Net debt increased by ₹108 Crores to ₹6,771 Crores (Debt: ₹7,825 Crores; Cash: ₹1,054 Crores)
  • Meenakshi Energy Ltd.: Net debt decreased by ₹25 Crores to ₹933 Crores (Debt: ₹1,009 Crores; Cash: ₹76 Crores)
  • Consolidated: Net debt increased by ₹83 Crores to ₹7,704 Crores (Debt: ₹8,834 Crores; Cash: ₹1,130 Crores)

The company raised ₹300 Crores commercial paper at 8.25% during the quarter.

Credit Rating Upgrades

Vedanta Power received credit rating upgrades during the quarter:

  • CRISIL: Upgraded to AA+ (CE)/AA-
  • ICRA: Upgraded to AA-/A1+ (from A+/A1, off watch)

Growth Projects and Strategy

Short-Term (1-2 years): The Sakti Unit 2 expansion of ~600 MW remains on track for commissioning. Approved capex of ₹5,209 Crores, with ₹3,464 Crores spent up to Q1 FY27 and ₹1,745 Crores unspent.

Medium-Term (3-5 years): Strategy to grow thermal power generation business to 12 GW via organic growth in Sakti and evaluating acquisition of coal blocks based on commercial benefit.

Long-Term Vision: Exploring opportunities in nuclear power contribution to India's plan to scale nuclear capacity to 100 GW by 2047, and power distribution privatization opportunities.

Sustainability Initiatives

The company advanced sustainability through:

  • Industry-leading biomass co-firing
  • 100% saline water operations at MEL
  • Planting 8.76 lakh trees across assets (cumulative till Q1 FY27)
  • Reducing freshwater consumption by 17% YoY
  • Achieving 86% ash utilization with ₹10 Crores in ash sales
  • Positively impacting over 3.3 lakh individuals across four states
  • Maintaining 60% local employment

Management Commentary

Rajinder Singh Ahuja, Chief Executive Officer: "Our maiden quarter as a standalone listed company marks an important milestone for Vedanta Power. Strong revenue and power sales, backed by operational excellence, fuel security, improved credit ratings, and sustainability initiatives, demonstrate the resilience of our business and future readiness."

Pankaj Jha, Chief Financial Officer: "Our Q1 performance reflects the resilience of Vedanta Power's diversified business model. Strengthened by improved credit ratings, a healthy liquidity position of ₹1,130 Crores in cash equivalents, long-term coal security, and disciplined financial management."

Additional Business Highlights

  • 74% of power sales (3080 MW) secured under long-term/medium-term PPAs with Punjab, Odisha, Tamil Nadu (500 MW), and recently secured 100 MW contract with Kerala
  • 85% long-term coal security with linkages from MCL, SECL, NCL
  • 29% of operating capacity located near coal mines
  • Implemented ITMS reducing truck turnaround time by up to 50%
  • Digital transformation enhancing operational efficiency and transparency

Appendix Financial Data

Income Statement Summary (₹ Crores):

| Particular | Q1 FY27 | Q4 FY26 | Q1 FY26 |

| Revenue from operations | 2,595 | 2,670 | 1,981 |

| Operating income | 12 | 14 | 5 |

| Power & fuel charges | (2,063) | (1,814) | (1,425) |

| Other expenses | (253) | (276) | (144) |

| EBITDA | 291 | 594 | 417 |

| Other income | 9 | 14 | 5 |

| Finance costs | (196) | (190) | (151) |

| Depreciation and amortization | (225) | (223) | (169) |

| Tax (expense)/benefit | 62 | (22) | (14) |

| PAT/(loss) before exceptional items | (59) | 173 | 88 |

| Exceptional items (net of tax) | (364) | (34) | - |

| PAT/(loss) | (423) | 139 | 88 |

Sales Summary by Plant (MUs):

| Plant | Q1 FY27 | Q1 FY26 | Q4 FY26 | FY26 Annual |

| Talwandi Sabo Thermal Plant | 2,723 | 2,386 | 2,715 | 9,863 |

| Sakti Thermal Power Plant | 464 | 1,087 | 0 | 2,729 |

| Meenakshi Energy Ltd | 1,350 | 1,161 | 391 | 2,822 |

| Jharsuguda Independent Power Plant | 687 | 896 | 678 | 2,604 |

| Total sales | 5,224 | 5,530 | 3,784 | 18,018 |