Vedanta Power Ltd posted a net loss of ₹423 crore for the June 2026 quarter, impacted by an exceptional charge of ₹487 crore. While revenue grew 31% year-on-year, operating margins dropped sharply to 11.16%.
Vedanta Power Ltd reported a net loss of ₹423 crore for the first quarter of fiscal year 2027, reversing the profit of ₹139 crore recorded in the previous quarter. The loss was largely driven by an exceptional charge of ₹487 crore. This result contrasts with the ₹75 crore net profit reported in the same quarter last year.
Revenue and Margin Performance
For the quarter ended June 30, 2026, the company recorded revenue of ₹2,607 crore. While this marks a 31% increase compared to the same period last year, it reflects a 2.9% dip from the ₹2,684 crore revenue in the preceding quarter. A more significant impact was seen in the company's operating profitability. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) fell by 51% quarter-on-quarter to ₹291 crore, bringing the EBITDA margin down to 11.16% from 22.13% in the previous quarter.
Power Sales and Operational Updates
Despite the financial decline, the company reported operational growth, with power sales rising 38% year-on-year to 5,224 million units. Stability in the business model is supported by long-term and medium-term Power Purchase Agreements (PPAs), which account for 74% of total sales. These agreements include supply contracts with state entities in Punjab, Odisha, Tamil Nadu, and Kerala.
Performance across specific units showed mixed trends. Meenakshi Energy Limited, a subsidiary, recorded its highest quarterly EBITDA of ₹112 crore, supported by a 16% quarter-on-quarter increase in power sales. The subsidiary is currently working to transition its operations to rely entirely on domestic coal, reducing dependence on imported sources. Additionally, the Talwandi Sabo Thermal Plant saw improvements in its operational efficiency, with the Plant Availability Factor rising to 86%.
Investor Monitorables
At the close of trading on July 29, 2026, shares of Vedanta Power Ltd were down by 0.98% at ₹35.31. Moving forward, investors may monitor the company’s progress in stabilizing profit margins, which were pressured this quarter. Other important areas to track include the progress of the transition to 100% domestic coal at Meenakshi Energy, the impact of biomass co-firing initiatives on operational costs, and the company's ability to maintain its cash position of ₹1,130 crore while securing coal requirements for its thermal plants.