Vedanta Power Q2 results: Company swings to profit at Rs 83 crore; revenue rises 38% YoY

Profit after tax before exceptional items increased 171% to Rs 101 crore.On a quarter-on-quarter basis, EBITDA rose 45%, while profit before exceptional items turned positive at Rs 101 crore, compared with a loss of Rs 423 crore in the preceding quarter. The performance was supported by the company's highest-ever quarterly power sales.For the first half of FY27, Vedanta Power reported revenue of Rs 5,515 crore, up 35% YoY, while EBITDA increased 17% to Rs 712 crore.

Profit after tax before exceptional items stood at Rs 42 crore, up 178% from the year-ago period. Power sales rose 32% to 10,817 million units (MU) during the first half.Live EventsThe company reported power sales of 5,593 MU in the September quarter, an increase of 26% YoY. Net sales realisation rose to Rs 5.20 per kilowatt-hour (kWh), compared with Rs 4.74 per kWh in the corresponding quarter last year.At Meenakshi Energy Limited in Andhra Pradesh, quarterly power sales increased 111% YoY to 1,470 MU.

The company restored the plant's full 1,000 MW capacity in 2025 following its acquisition in 2023. Meenakshi Energy recorded quarterly EBITDA of Rs 101 crore.Jharsuguda Independent Power Plant in Odisha reported plant availability of 98%, compared with 48% in the year-ago quarter. Power sales stood at 873 MU, up 187% YoY and 27% quarter-on-quarter.Talwandi Sabo Thermal Plant in Punjab supplied 2,945 MU during the quarter, an increase of 6% YoY.

Its plant availability stood at 79%, compared with 90% a year earlier.The company also said its Sakti plant was synchronised on October 25, 2026, with stable operations expected to contribute to EBITDA and free cash flow.Debt and other developmentsVedanta Power's net debt-to-EBITDA ratio improved to 4.47 times at the end of the September quarter, compared with 5.38 times in the June quarter and 9.82 times in the year-ago period.Net debt stood at Rs 7,444 crore, down from Rs 7,704 crore in the previous quarter, while cash balances stood at Rs 1,063 crore.The company also highlighted rating upgrades to CRISIL AA− and ICRA AA−, along with its inclusion in the Nifty 500 and Nifty Smallcap 250 indices.Vedanta Power said 85% of its coal requirements were secured through long-term arrangements.

At Meenakshi Energy, a five-year power purchase agreement covers 300 MW with Tamil Nadu Power Development Corporation Limited.On the sustainability front, the company reported a 51% year-on-year reduction in freshwater consumption, ash utilisation of 65% and the planting of 9.02 lakh trees across its assets. It also said its operations had positively impacted more than 1.7 lakh women and children across four states.Management commentaryRajinder Singh Ahuja, CEO and whole-time director of Vedanta Power, said the company's quarterly performance reflected the strength of its assets and operational execution."Our highest ever Q2 performance reflects the inherent strength of our assets and the resilience of our operations, with results driven by core operational performance.

Our first-ever positive EPS marks a turning point for Vedanta Power. Record power sales showcase our ability to supply round-the-clock power and ensure reliable and continuous power supply for our customers. Our strategy shall remain focused on deepening asset efficiency, while advancing our growth roadmap to support India's rising demand for reliable power," Ahuja said.Pankaj Jha, chief financial officer of Vedanta Power, said the operational turnaround was translating into stronger profitability and a stronger balance sheet."The operational turnaround is translating into stronger profitability and a robust balance sheet.

Higher volumes, better realisations, disciplined costs, prudent capital allocation, and financial efficiency drove this. We are building a power business that is reliable, cost-competitive and responsible. Our focus is on operational excellence, a stronger balance sheet and long-term value for our shareholders and the communities we serve. Our ratings of AA- from CRISIL and ICRA reflect stronger cash flows and treasury discipline.

We will keep prioritising deleveraging and cost of funds as new capacity comes into operation," Jha said.Ahead of the results announcement, Vedanta Power shares ended Thursday's trading session on the NSE at Rs 28.88, up 0.31%.Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication.

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