Vedanta Power's profit for the second quarter of the fiscal year rebounded significantly to ₹101 crore, driven by a more than doubling of its earnings before interest, tax, depreciation, and amortisation (EBITDA). The company reported revenue growth of 38% year-on-year (YoY) to ₹2,908 crore, reflecting strong operational performance and improved market conditions.
- Revenue increased 38% YoY to ₹2,908 crore in Q2.
- EBITDA more than doubled to ₹421 crore from ₹190 crore a year earlier.
- Net profit rose to ₹83 crore, reversing a loss of ₹1,688 crore in the prior year quarter.
- Power sales grew 26% YoY to 5,593 million units (MU).
- EBITDA margin expanded to 14.5% from 9% in the previous year.
- Net debt decreased to ₹7,444 crore, improving financial stability.
How did Vedanta Power's revenue and profit change in Q2?
Vedanta Power's revenue for the quarter increased by 38% compared to the same period last year, reaching ₹2,908 crore. This growth was supported by higher power sales and improved pricing. The company’s EBITDA more than doubled to ₹421 crore from ₹190 crore in the previous year, indicating better operational efficiency and cost management.
Net profit turned positive at ₹83 crore, a significant turnaround from a loss of ₹1,688 crore in the year-earlier quarter, which had included exceptional items worth ₹1,547 crore. Earnings per share (EPS) also became positive for the first time, standing at ₹0.21.
What were the key drivers behind the increase in power sales and EBITDA margin?
Power sales rose by 26% YoY to 5,593 million units, driven by improved generation capacity and higher plant availability. The net realisation per kilowatt-hour increased to ₹5.20 from ₹4.74 a year earlier, reflecting better pricing strategies. These factors contributed to an expansion of the EBITDA margin to 14.5%, up from 9% in the previous year’s quarter.
How did Vedanta Power perform in the first half of the fiscal year?
For the first half of the fiscal year 2027, Vedanta Power reported a 35% increase in revenue to ₹5,515 crore and a 17% rise in EBITDA to ₹712 crore. Profit before exceptional items climbed by 178% to ₹42 crore, while power sales increased by 32% to 10,817 million units. These results highlight the company’s ongoing operational improvements and financial recovery.
What improvements were seen at Vedanta Power’s key plants?
Several power plants showed strong performance gains. Meenakshi Energy Ltd in Andhra Pradesh recorded power sales of 1,470 MU, up 111% YoY, following the restoration of its full 1,000 MW capacity after acquisition. The Jharsuguda Independent Power Plant in Odisha increased supply by 187% to 873 MU, with plant availability improving to 98%. The Talwandi Sabo Thermal Power Plant in Punjab supplied 2,945 MU, a 6% increase, though its availability declined slightly.
The Sakti power plant was synchronised on October 25, marking progress toward expanding capacity, though its earnings contribution depends on stable operations.
How has Vedanta Power’s financial health improved?
The company’s net debt decreased to ₹7,444 crore from ₹7,704 crore in the previous quarter. Its net debt-to-EBITDA ratio improved significantly to 4.47 times from 5.38 times, and was much lower than 9.82 times a year earlier. Cash reserves stood at ₹1,063 crore. Credit rating agencies upgraded Vedanta Power’s ratings to AA-, citing better cash flows and financial discipline.
What environmental and community initiatives has Vedanta Power undertaken?
Vedanta Power reported progress in sustainability efforts, including biomass co-firing, a 51% reduction in freshwater consumption year-on-year, and ash utilisation at 65%. The company has planted over 9 lakh trees and its community programs have reached more than 1.7 lakh women and children across four states, demonstrating a commitment to environmental responsibility and social welfare.
What are Vedanta Power’s future goals?
The company aims to improve asset efficiency and expand capacity to meet India’s growing demand for reliable electricity. Vedanta Power operates a thermal power capacity of 4,780 MW and plans to become one of India’s top three private thermal power producers by the fiscal year 2033.
Chief Executive Officer Rajinder Singh Ahuja emphasized that the strong Q2 performance reflects the resilience of the company’s operations and the strength of its assets. Chief Financial Officer Pankaj Jha highlighted the importance of deleveraging and cost control as new capacity comes online.
