Vedanta Power Ltd
Vedanta Power Ltd
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BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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28 extracted metrics + investor summaries across FY25–FY26.
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Technical Indicators
Key Insights
Weaknesses
1- Company has low interest coverage ratio.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 4d agoVedanta Power Ltd (formerly Talwandi Sabo Power Ltd) operates a 1,980 MW supercritical coal-based thermal power plant in Punjab with a market cap of approximately ₹14,046 Cr. The company trades at a negative P/E of -8.2 reflecting recent losses, reported a Q1 FY27 net loss of ₹449 Cr, and carries a debt-to-equity ratio of 3.37 with low interest coverage, indicating significant financial stress despite a stable offtake arrangement with Punjab State Power Corporation Ltd.
- Large-scale asset with 1,980 MW installed capacity (3x660 MW supercritical units), making it the largest private thermal power plant in North India
- 100% offtake guaranteed under long-term PPA with Punjab State Power Corporation Ltd, providing revenue visibility on the entire 1,980 MW capacity
- Annual revenue of approximately ₹5,224 Cr (FY25), demonstrating the plant's ability to generate substantial top-line cash flows
- Supercritical technology results in higher thermal efficiency (~40%) compared to subcritical plants, offering lower fuel costs per unit of generation
- Q1 FY27 power sales grew 38% year-on-year, indicating improving plant utilisation and generation volumes
- Market cap of ₹14,046 Cr implies an EV/MW of roughly ₹7-8 Cr per MW installed — potentially reasonable versus replacement cost of ₹8-10 Cr per MW for new supercritical capacity
- Biomass co-firing facility of 500 tonnes per day at Mansa reduces carbon intensity and aligns with regulatory mandates for renewable energy obligations
- Freshly listed on NSE/BSE in June 2026, providing improved governance transparency and potential for institutional re-rating over time
- Negative P/E of -8.2 and reported Q1 FY27 standalone net loss of ₹449 Cr indicate the company is not currently profitable
- Debt-to-equity ratio of 3.37 signals a highly leveraged balance sheet, with low interest coverage flagged as a known risk
- FY25 earnings collapsed 94.7% year-on-year to just ₹31.8 Cr net profit, showing severe margin compression
- Revenue declined 0.77% in FY25 and 8.9% in FY24, with no positive compounded sales growth trend visible over recent years
- ROE stands at -61.28% (TTM), reflecting deeply negative returns on shareholder equity and potential book value erosion
- P/B ratio of 3.52 (screener data) to 5.80 (other sources) is elevated for a loss-making utility with negative ROE
- Zero dividend yield despite being a utility, offering no income support to shareholders while the company services heavy debt
- ₹127 Cr penalty imposed on the company by Punjab regulators (May 2026), adding regulatory risk and potential cash outflow
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 1d ago- ₹423cr Q1 loss on penalty Jul 29
Vedanta Power reported a consolidated net loss of ₹423 crore in Q1FY27, driven by a ₹487 crore exceptional item linked to a Supreme Court penalty.
- 56% shares encumbered for bonds Jul 16
Promoter group entities have encumbered 56.38% of Vedanta Power shares against $1.75 billion bonds issued by Vedanta Resources Finance II PLC, raising leverage and pledge risk.
- Revenue up 31% YoY Jul 29
Despite the net loss, Vedanta Power's Q1FY27 revenue rose 31% YoY to ₹2,607 crore, indicating strong operational momentum.
- ESOP and ESPP schemes approved Jul 29
Board approved VEDPOWER ESOP 2026 and ESPP 2026 covering up to 5% of paid-up capital via trust route, signaling employee retention focus and management confidence.
- Q1FY27 earnings call held Jul 30 Jul 30
Vedanta Power made the audio recording of its Q1FY27 earnings conference call available on its website, complying with SEBI LODR Regulation 30.
TL;DR: Vedanta Power's Q1FY27 shows strong 31% revenue growth but a ₹423 crore net loss due to a one-off Supreme Court penalty of ₹487 crore clouds the quarter. The high promoter share encumbrance at 56.38% against $1.75 billion in bonds remains a structural overhang. Underlying operational performance is improving, but investors should watch for resolution of legal liabilities and any further pledge activity.
Quarterly Results
| Jun 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|
| Sales | 1,986 | 2,684 | 2,607 |
| Expenses | 1,569 | 2,090 | 2,316 |
| Operating Profit | 417 | 594 | 291 |
| OPM % | 21% | 22% | 11% |
| Other Income | 5 | -31 | -478 |
| Interest | 151 | 190 | 196 |
| Depreciation | 169 | 223 | 225 |
| PBT | 102 | 150 | -608 |
| Tax % | 14% | 7% | -30% |
| Net Profit | 88 | 139 | -423 |
| EPS in Rs | 0.27 | 0.43 | -1.08 |
Profit & Loss
| Mar 2026 | |
|---|---|
| Sales | 8,799 |
| Expenses | 7,241 |
| Operating Profit | 1,558 |
| OPM % | 18% |
| Other Income | -2,295 |
| Interest | 705 |
| Depreciation | 829 |
| PBT | -2,271 |
| Tax % | -26% |
| Net Profit | -1,686 |
| EPS in Rs | -5.26 |
| Div. Payout % | 0% |
Balance Sheet
| Mar 2025 | Mar 2026 | |
|---|---|---|
| Equity Capital | 3,207 | 3,207 |
| Reserves | 448 | -1,269 |
| Borrowings | 6,238 | 6,542 |
| Other Liabilities | 397 | 762 |
| Total Liabilities | 10,289 | 9,242 |
| Fixed Assets | 7,123 | 6,744 |
| CWIP | 1 | 0 |
| Investments | 0 | 0 |
| Other Assets | 3,165 | 2,498 |
| Total Assets | 10,289 | 9,242 |
Cash Flow
| Mar 2025 | Mar 2026 | |
|---|---|---|
| Operating | 768 | 556 |
| Investing | -26 | -37 |
| Financing | -876 | -506 |
| Net Cash Flow | -134 | 13 |
| Free Cash Flow | 738 | 477 |
| CFO/OP | 72 | 51 |
Ratios
| Mar 2025 | Mar 2026 | |
|---|---|---|
| Debtor Days | 67 | 66 |
| Cash Conversion Cycle | 67 | 66 |
| Working Capital Days | -70 | -138 |
| ROCE % | — | 7% |
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Company Information
Vedanta Power is the power generation business of Vedanta Group. It operates large thermal power assets and supplies electricity to industries and state utilities across India.