Vedanta Power experienced a significant financial reversal in its first quarter as a standalone listed entity, reporting a standalone net loss of ₹449 crore compared to a net profit of ₹75 crore in the corresponding quarter of the previous year. According to the latest stock exchange filing, this represents a dramatic shift from profitability to substantial losses within a single quarter. The company's standalone total income increased to ₹1,844 crore in Q1 FY27, up from over ₹1,734 crore in the same quarter last year, though it declined sequentially from ₹2,670 crore in Q3 FY26. Total expenses rose to ₹1,985 crore from ₹1,638 crore in the year-ago period, contributing to the overall loss. The company's consolidated net loss stood at ₹423 crore during the first quarter of the current fiscal, compared to a consolidated net profit of ₹88 crore in the year-ago period, with consolidated income increasing to ₹2,616 crore against ₹1,991 crore year-on-year. Vedanta Power shares were listed on the BSE and National Stock Exchange (NSE) last month and the quarter marks its first set of results as an independently listed entity, with the listing ceremony led by Vedanta Group Chairman Anil Agarwal on June 15.
The company's operational performance showed significant improvement with power sales jumping 38% year-on-year, attributed to enhanced generation across its key assets. According to the regulatory filing, 74% of power sales were secured under long-term and medium-term power purchase agreements (PPAs) in Punjab and Odisha, along with a 500 MW contract with Tamil Nadu and a recently secured 100 MW contract with Kerala. This strong performance demonstrates the company's diversified business model and operational resilience. Vedanta Power Chief Executive Officer Rajinder Singh Ahuja stated that the maiden quarter as a standalone listed company marks an important milestone, highlighting the resilience of the business and future readiness through operational excellence, fuel security, improved credit ratings and sustainability initiatives. With a total thermal power capacity of 4,780 MW, the company supplies power to distribution companies (discoms) nationwide through long-term partnerships, while supporting emerging grid requirements.
The company's financial performance was significantly impacted by exceptional losses of ₹487 crore during the quarter, substantially higher than the exceptional loss of ₹45 crore recorded in the previous quarter. According to the regulatory filing, there were no exceptional items in the year-ago period. Additionally, the Supreme Court imposed a penalty of ₹127 crore on the company in May 2026 over alleged mis-declaration of declared capacity, along with applicable late payment surcharge. Basic and diluted earnings per share (EPS) stood at a negative ₹1.08 for the quarter, compared with a positive ₹0.36 in the previous quarter and ₹0.23 in the corresponding quarter of the previous financial year.
The company has set an ambitious growth target to scale its capacity to 20 GW by FY33, with the long-term ambition to be among the top-three private-sector power companies in the country. As part of this expansion, Vedanta Power expects to commission the second 600 MW unit at its Sakti plant in the second half of FY27 and increase total capacity to 12 GW by FY33. The company's board approved a significant investment of ₹1,225 crore for phase I of greenfield expansion in Andhra Pradesh for motorcycle production capacity upgrade as part of an overall investment plan of ₹2,500 crore in a phased manner. The company also disclosed that the National Company Law Tribunal (NCLT) approved the scheme for demerger of the Merchant Power Undertaking of Vedanta Limited into Vedanta Power on January 9, 2026, which became effective on May 1, 2026, following which the company issued 391.04 crore equity shares to the shareholders of Vedanta Limited. Vedanta Power had earlier said it is evaluating a foray into hydro, battery storage and nuclear energy as part of a long-term diversification plan, recognising nuclear energy as a clean, reliable round-the-clock power source and a key enabler of the country's energy transition.
