Vedanta Power Q1 FY27: Loss ₹449cr, sales +38%

Post-demerger quarter puts focus on costs and comparability

Vedanta Power Ltd, a recently demerged and separately listed company, reported a weak set of financial results for the quarter ended June 30, 2026 (Q1 FY27), even as operational volumes improved. The company posted a standalone net loss of ₹449 crore for the quarter, reversing a standalone net profit of ₹75 crore in the year-ago period.

The quarter is also the first where reported performance includes both pre- and post-demerger periods, and the company has said comparisons with prior periods should be viewed in that context. Alongside financial results, Vedanta Power disclosed a sharp year-on-year jump in power sales, led by improved generation and a higher contribution from its Meenakshi Energy asset.

Standalone results: income up, expenses rose faster

On a standalone basis, Vedanta Power reported total income of ₹1,844 crore in Q1 FY27, compared with over ₹1,734 crore in the corresponding quarter of the preceding fiscal. However, total expenses increased to ₹1,985 crore from ₹1,638 crore in the year-ago period.

The widening gap between income and expenses pushed the standalone result into a loss. The filing underscores that while revenue trends were positive, the cost line moved up more sharply during the quarter.

Consolidated results: net loss and weaker operating performance

On a consolidated basis, Vedanta Power reported a net loss of ₹423 crore for Q1 FY27. Consolidated revenue from operations stood at ₹2,595 crore, down from ₹2,670 crore in Q4 FY26 but up from ₹1,981 crore in Q1 FY26.

Total consolidated income for the quarter was ₹2,616 crore. Total consolidated expenses were ₹2,737 crore, higher than ₹2,503 crore in Q4 FY26. Consolidated EBITDA was ₹291 crore for the quarter ended June 30, 2026, compared with ₹594 crore in the preceding quarter and ₹417 crore in the year-ago quarter.

Basic and diluted consolidated EPS for Q1 FY27 was negative at ₹(1.08). This compared with ₹0.36 in Q4 FY26 and ₹0.23 in Q1 FY26.

Exceptional items: a large drag in Q1 FY27

The consolidated results included a net exceptional loss of ₹487 crore in Q1 FY27. This compared with an exceptional loss of ₹45 crore in Q4 FY26 and no exceptional item in the year-ago quarter.

The company also disclosed that in May 2026, the Supreme Court imposed a penalty on the company for alleged mis-declaration of declared capacity. Vedanta Power said it booked an exceptional loss of ₹127 crore, plus applicable late payment surcharge, during the current quarter in relation to this penalty.

Power sales: 38% YoY rise to 5,225 MU, but down sequentially

Operationally, Vedanta Power reported that total power sales rose 38% year-on-year to 5,225 million units (MU) in the June quarter, compared with 3,784 MU in the corresponding quarter of the previous fiscal year. On a sequential basis, sales were lower by 6% from 5,530 MU in Q4 FY26.

The company attributed the year-on-year growth to improved generation across key assets and a higher contribution from Meenakshi Energy. The demerger timing matters here as well, with the company stating that Q1 FY27 includes both pre- and post-demerger periods.

Asset-wise snapshot: Meenakshi surge, Talwandi steady, Sakti hit

Meenakshi Energy recorded the highest growth among the company’s generating assets, with power sales rising 245% year-on-year to 1,350 MU, supported by operations at its full installed capacity of 1,000 MW. Sales at Meenakshi Energy were also up 16% sequentially from 1,161 MU, and the company noted that Q1 FY26 reflected operations of a single 300 MW unit, while Q4 FY26 and Q1 FY27 are presented on the expanded 1,000 MW operational capacity base.

Talwandi Sabo Thermal Plant remained the largest contributor with power sales of 2,723 MU during the quarter. This was broadly in line with 2,715 MU a year earlier, and 14% higher than 2,386 MU in the March quarter. Talwandi Sabo’s Plant Availability Factor (PAF) stood at 86% in the June quarter, compared with 90% in the corresponding period last year and 77% in the previous quarter. The company noted that the PAF exceeded the normative availability level of 80% under its power purchase agreement with the Punjab government.

Sakti Thermal Plant reported sales of 465 MU during the quarter, versus 1,087 MU in Q4 FY26. The company said the decline was primarily due to reduced plant availability after a boiler incident on April 14, which significantly impacted operations.

Jharsuguda Thermal Plant reported a PAF of 93% during the quarter compared with 66% a year ago. Power sales from Jharsuguda were 687 MU, which the company described as 1% higher than the prior quarter but 23% lower than Q1 FY26.

Key numbers at a glance

Stock move: shares trade lower after updates

Vedanta Power shares were reported trading lower on July 6, with the stock slipping as much as 6.34% to ₹42.81 on the NSE. In another trading update after the operational release, shares were reported to have ended 6.27% lower at ₹45.59 on the NSE.

Capacity expansion plan: 20 GW target on the roadmap

Alongside the quarterly update, the company has said it plans a 20 GW capacity expansion. While the quarter’s operational data points to improved generation at key plants, the financial results show pressure from expenses and exceptional items.

Why the quarter matters for investors tracking the demerger

Q1 FY27 is an early read on Vedanta Power as an independent, listed entity, but the company has cautioned that the quarter includes both pre- and post-demerger periods. That makes headline year-on-year comparisons less straightforward in some cases, especially where capacity bases have changed, as highlighted for Meenakshi Energy.

At the same time, the quarter provides clear markers for investors to track going forward: consolidated EBITDA moved down sharply quarter-on-quarter, exceptional losses were sizable, and operational volumes improved year-on-year but eased sequentially due to plant-level disruptions.

Conclusion

Vedanta Power’s Q1 FY27 combined higher power sales with weaker profitability, driven by higher expenses and a large exceptional loss. Investors are likely to track how exceptional items, plant availability, and the company’s stated 20 GW expansion plan evolve in subsequent quarters.