Vedanta Power Set for Stock Market Debut
Vedanta Power, the demerged entity from mining conglomerate Vedanta Ltd., is poised to make its stock market debut next week, sources indicate. The listing, expected in mid-June, will position the company as India’s fifth-largest private thermal power producer, pending final regulatory and exchange approvals.
Ambitious Growth and Operational Overview
Currently, Vedanta Power operates a robust 4.18 GW of thermal capacity across key locations including Talwandi Sabo in Punjab, Meenakshi Energy in Andhra Pradesh, Sakti in Chhattisgarh, and Jharsuguda in Odisha. The company has articulated an ambitious strategy to become one of India’s top three private thermal power producers by fiscal year 2033, targeting an expansion to 11.98 GW through strategic growth and asset optimizations.
A significant portion of its operations is backed by long-term contracts; approximately 85 percent of its capacity benefits from long-term coal linkages. Furthermore, nearly 73 percent of its installed capacity is secured under long-term and medium-term Power Purchase Agreements (PPAs) with various state utilities. For instance, the 1,980 MW capacity at Talwandi Sabo is fully contracted until 2041 under a 25-year PPA, supplying about 35 percent of Punjab’s electricity needs. Similarly, Jharsuguda’s 600 MW is fully contracted until 2037, while 300 MW at Meenakshi and 200 MW at Sakti are covered by PPAs extending until 2031.
Financials and Brokerage Valuations
For fiscal year 2026, Vedanta Power reported revenues of Rs 8,891 crore and an EBITDA of Rs 1,534 crore. Projections indicate a significant turnaround in free cash flow, moving from a negative Rs 347 crore in FY25 to a positive Rs 2,233 crore by FY29, reflecting improved operational efficiency and financial health.
Ahead of its listing, several brokerage firms have provided a range of valuations for Vedanta Power. Nuvama Institutional Equities assigned a fair value of Rs 47 per share, Emkay Global Financial Services Rs 51.7 per share, and Kotak Institutional Equities Rs 60 per share. Investec offered a valuation of Rs 29 per share, while Systematix valued the entire business at Rs 6,200 crore. ICICI Securities estimated the power arm’s contribution at Rs 13 in its sum-of-the-parts valuation.
Recent Performance and Operational Challenges
Recent performance data highlights growth, with Nuvama noting a 28 percent quarter-on-quarter rise in power sales volume to 5 million units, partly driven by an increase in the Plant Load Factor (PLF) at TSPL to 77 percent. Production at Meenakshi and Athena also saw significant increases of 125 percent and 20 percent quarter-on-quarter, respectively. Overall, revenue grew 46 percent to Rs 2,170 crore, and EBITDA increased by approximately 53 percent to Rs 570 crore.
However, the company has faced an operational challenge; a 600 MW unit was taken offline following a boiler tube blast in mid-April 2026. While insurance is in place to cover potential losses from non-supply, management has yet to provide a definitive restart timeline for the affected Unit-1 or the under-commissioning Unit-2, pending a full assessment.
Demerger Process Concludes
The demerger of Vedanta Ltd. became effective on May 1, 2026, as per the approved scheme. Under this arrangement, shareholders will receive one share each of Vedanta Aluminium Metal (VAML), Vedanta Power, Malco Energy (MEL), and Vedanta Iron & Steel (VISL) for every existing Vedanta share held. The original Vedanta shares will continue to remain with investors.