Vedanta Power Achieves Significant Q2 FY27 Profitability
Vedanta Power Ltd. announced a strong return to profitability for the second quarter of the financial year 2027, reversing a previous loss to post a profit after tax (PAT) of Rs 101 crore. This marks a substantial 171% year-on-year increase in PAT before exceptional items, compared to a loss of Rs 142 crore in the corresponding quarter of FY26.
The company's revenue from operations also saw robust growth, rising 38% year-on-year to reach Rs 2,908 crore. This financial resurgence contributed to Vedanta Power recording its first-ever positive earnings per share (EPS) at Rs 0.21 for the quarter. Overall net profit for Q2 FY27 stood at Rs 83 crore, a significant improvement from a net loss of Rs 1,688 crore reported in Q2 FY26.
Operational Performance Drives Growth
Key operational improvements across Vedanta Power's plants were instrumental in achieving the quarterly growth. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) more than doubled, increasing by 122% to Rs 421 crore from Rs 190 crore in the year-ago period. The EBITDA margin expanded from 9% to 15%.
- Power Sales Surge: Total power sales increased by 26% year-on-year, reaching 5,593 million units (MU). Net realization also improved, rising to Rs 5.20 per kWh from Rs 4.74 per kWh.
Meenakshi Energy's Contribution
Meenakshi Energy's power sales recorded an impressive 111% year-on-year increase, contributing 1,470 MU during the quarter.
Jharsuguda Independent Power Plant
The Jharsuguda Independent Power Plant demonstrated exceptional reliability, achieving a plant availability of 98%, a significant jump from 48% in the previous year. This plant supplied 873 MU, up 187% year-on-year.
Talwandi Sabo Thermal Plant
The Talwandi Sabo Thermal Plant supplied 2,945 MU, marking a 6% increase compared to the same quarter last year.
Half-Yearly Performance and Debt Reduction
For the first half of FY27, Vedanta Power continued its growth trajectory. Revenue for H1 FY27 rose 35% year-on-year to Rs 5,515 crore, with EBITDA increasing 17% to Rs 712 crore. PAT before exceptional items for the half-year stood at Rs 42 crore, representing a 178% increase from the year-ago period.
The company also demonstrated improved financial health by reducing its net debt. The net debt-to-EBITDA ratio improved significantly to 4.47 times at the end of Q2 FY27, down from 9.82 times a year earlier. Net debt was recorded at Rs 7,444 crore, with cash and cash equivalents totaling Rs 1,063 crore.