Vedanta Power Ltd shares declined over 3% during trading hours on Thursday, July 30 after the company posted a net loss of ₹423 crore in the April-June quarter, compared to a net profit of ₹88 crore in the previous quarter. The stock was trading 2.83% lower by 10:50 am, while the benchmark Nifty 50 was up 0.05%. The market reaction reflects investor concerns over the company's profitability decline despite strong revenue growth, with the stock declining as much as 3.65% to ₹34.03 during the trading session. According to latest market data, Vedanta Power shares declined 4.2% to their intraday and 52-week low of ₹33.82 on Thursday's market, compared to ₹35.32 in the previous close.
Vedanta Power Ltd swung to a standalone net loss of ₹423 crore in Q1 FY27, compared to a net profit of ₹88 crore in the previous quarter. The company was impacted by a ₹487 crore exceptional loss during the quarter. Despite the profit decline, the power company demonstrated strong year-on-year performance with total income rising 31% to ₹2,607 crore from ₹1,986 crore in the previous quarter. However, operational efficiency was significantly impacted as EBITDA declined 30.2% quarter-on-quarter to ₹291 crore from ₹417 crore, with EBITDA margin compressing to 11.16% from 20.99% in the previous quarter. The company's consolidated income increased to ₹2,616 crore in Q1 FY27 against ₹1,991 crore in the year-ago period, while consolidated loss stood at ₹423 crore versus a consolidated net profit of ₹75 crore in the previous year. The pressure on margins comes against the backdrop of rising total expenses due to a 45% surge in power and fuel costs to ₹2,063 crore in Q1 FY27, from ₹1,425 crore in the corresponding period a year earlier.
The company's power sales surged 38% year-on-year to 5,224 million units, driven by higher generation across its key assets. Vedanta Power has strengthened its business resilience with 74% of power sales 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 the recently secured 100 MW contract with Kerala. The company's Talwandi Sabo Thermal Plant (TSTP) reported an increase in Plant Availability Factor (PAF) to 86% from 77%, with the plant more than doubling ash revenues year-on-year by improving sales realisation and recording the highest-ever biomass co-firing in Punjab at nearly 8%. The company also implemented an Information Technology Management System (ITMS), which reduced truck turnaround time by up to 50%.
Vedanta Power's Meenakshi Energy Limited reported its highest-ever quarterly EBITDA of ₹112 crore, up 20% quarter-on-quarter, with power sold by the unit standing at 1,350 million units, an increase of 16% quarter-on-quarter. The unit is transitioning from imported coal to 100% domestic coal, with the process underway. The company maintained a cash equivalent position of ₹1,130 crore and secured 85% long-term coal security during the quarter. The company's consolidated income increased to ₹2,616 crore in Q1 FY27 against ₹1,991 crore in the year-ago period, while consolidated loss stood at ₹423 crore versus a consolidated net profit of ₹75 crore in the previous year.
Vedanta Oil & Gas shares dropped around 5% to their intraday low of ₹33.20 during the trading session on July 30, compared to ₹35.07 at the previous close. The oil production company reported net profit of ₹945 crore in Q1 FY27 compared to a net loss of ₹476 crore in Q4 FY26, with revenue increasing marginally by 3% to ₹2,507 crore from ₹2,584 crore in the previous quarter. However, EBITDA declined 7.7% quarter-on-quarter to ₹814 crore from ₹882 crore, with EBITDA margin contracting to 32.47% from 34% in the previous quarter. As per Interim CEO Jim Johnny Gast, the company benefited from favourable commodity prices and healthy realisations, with the firm turning in profits largely due to the rise in global crude oil prices amid the West Asia conflict. The company is advancing a strong pipeline of near and medium-term growth opportunities including exploration drilling, enhanced oil recovery (ASP), and infill development campaigns aimed at arresting decline and enhancing production.
