Vedanta Power (VEDPOWER) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 was the first reporting period post-demerger, with all Vedanta entities reporting strong operational and financial performance, while the power segment saw revenue rise 31% YoY to ₹2,607 crore but EBITDA declined 30% YoY due to a boiler incident at Sakti.

• The quarter included the impact of a major corporate restructuring, with the demerger of the Merchant Power Undertaking and listing of shares on BSE and NSE.

• Significant deleveraging and refinancing at Vedanta Resources, with a focus on growth, cost discipline, and capital allocation across entities.

• Credit ratings were upgraded across entities, with commercial paper of ₹300 crore raised at 8.25%.

• Statutory auditors issued an unmodified review opinion on the unaudited consolidated and standalone financial results.

Financial highlights

• Vedanta Limited revenue rose 51% YoY to INR 22,456 crores; EBITDA nearly doubled to INR 8,469 crores with a 57% margin.

• Vedanta Power revenue grew 31% YoY to ₹2,607 crore; EBITDA at ₹291 crore (down 30% YoY), impacted by a boiler incident at Sakti; PAT loss of ₹423 crore, including exceptional items.

• Vedanta Aluminium posted record revenue of INR 21,105 crores (up 45% YoY) and EBITDA of INR 10,499 crores (up 134% YoY); PAT at INR 6,597 crores.

• Consolidated net loss after tax was ₹423 crore, compared to a profit of ₹88 crore in Q1 FY26; exceptional loss of ₹487 crore booked, including a Supreme Court penalty.

• Free cash flow (pre-capex) for the power segment was ₹26 crore; net debt/EBITDA at 5.38x.

Outlook and guidance

• Vedanta Aluminium maintains cost guidance of $1,650-$1,700/ton for FY 2027, with Q2 costs expected marginally higher due to planned shutdowns.

• Power segment focuses on ramping up Sakti Thermal Plant, operationalizing 600 MW, and long-term vision to grow thermal power generation to 12 GW.

• Group-wide focus on sustaining high dividend yields (4%-5%), robust free cash flow, and continued deleveraging.

• The company continues to pursue legal remedies regarding the Supreme Court penalty and remains focused on operational safety and efficiency.