Vedanta Power delivered robust performance in Q1 FY27, with power sales rising 38% year-on-year to 5,225 million units compared to 3,784 million units in the same period last year. According to the company's production release filed with the exchanges, this growth was primarily driven by a sharp increase in generation from Meenakshi Energy and stable output from Talwandi Sabo Thermal Plant. The strongest growth came from Meenakshi Energy, where power sales rose 245% year-on-year to 1,350 million units from 391 million units, with sales also 16% higher than the March quarter's 1,161 million units. The year-ago period reflected operations of only one 300 MW unit at Meenakshi, while the latest quarter reflects the expanded 1,000 MW capacity base.
Despite the strong year-on-year performance, Vedanta Power experienced a 6% sequential decline in power sales from 5,530 million units in the March quarter to 5,225 million units in Q1 FY27. As reported by CNBC TV18, this decline was attributed to lower generation at some plants during the quarter, which impacted overall sales volumes. The company's Talwandi Sabo Thermal Plant remained the largest contributor with 2,723 million units, which was broadly in line with 2,715 million units a year earlier, but 14% higher than 2,386 million units in the March quarter. The plant availability factor for Talwandi Sabo stood at 86% in the June quarter, compared with 77% in the previous quarter, though this remained above the 80% normative level under its power purchase agreement with the Punjab government.
The company faced significant operational disruptions during the quarter, with the Sakti Thermal Plant remaining shut after a boiler blast incident. According to the production release, this shutdown had a material impact on overall power generation volumes and contributed to the sequential decline in sales despite the strong year-on-year growth. The weak spot was Sakti Thermal Plant, formerly known as Athena Power Plant, where sales stood at 465 million units in the quarter, compared with 1,087 million units in the March quarter. The company said the plant has been temporarily shut since April 14 after a boiler blast in Unit I, which reduced availability and affected operations during the quarter.
Vedanta Power's performance should be viewed in the context of the company's demerger from Vedanta Ltd. during the first quarter of FY27. As reported by CNBC TV18, this corporate restructuring represents a significant milestone for the power generation business, which is now operating as an independent entity. The company has an installed capacity of 4.2 GW, with an additional 0.6 GW Shakti Unit II under project phase. Its portfolio includes the 1,980 MW Talwandi Sabo plant in Punjab, 1,000 MW Meenakshi facility in Andhra Pradesh, 1,200 MW Sakti plant in Chhattisgarh and 600 MW Jharsuguda unit in Odisha. The demerger has created a new operational framework that will influence future performance metrics and comparisons, with the quarter including both pre- and post-demerger periods that should be viewed accordingly.
Despite strong operational performance, Vedanta Power shares ended 6.27% lower at ₹45.59 on the NSE on Friday, according to CNBC TV18. However, shares are likely to be in focus on Monday after the company reported strong rise in power sales for the June quarter. Management has outlined plans to become one of India's top three private thermal power producers by FY33 through capacity expansion and asset turnarounds. The business also benefits from several long-term and medium-term power purchase agreements with state utilities, providing a degree of revenue visibility. As per The Economic Times, the company currently has an installed generation capacity of 4.2 GW and is developing an additional 0.6 GW under Shakti Unit II. The company has also stated it is evaluating a foray into hydro, battery storage, and nuclear energy as part of a long-term diversification plan, recognizing nuclear energy as a clean, reliable round-the-clock power source.
