Vedanta Power reported its highest-ever quarterly performance for Q2 FY27, with revenue rising 38 per cent year-on-year (YoY) to Rs 29.08 billion and EBITDA increasing 122 per cent to Rs 4.21 billion. Profit after tax (PAT) before exceptional items rose 171 per cent to Rs 1.01 billion, compared with a loss of Rs 1.42 billion in the corresponding quarter last year. The company also recorded its first-ever positive earnings per share (EPS) of Rs 0.21.

Power sales increased 26 per cent YoY to 5,593 million units (MUs), while net realisation improved to Rs 5.20 per kWh from Rs 4.74 per kWh a year earlier. On a quarter-on-quarter basis, EBITDA rose 45 per cent and PAT before exceptional items increased 271 per cent.

For the first half of FY27, revenue grew 35 per cent YoY to Rs 55.15 billion, while EBITDA increased 17 per cent to Rs 7.12 billion. PAT before exceptional items rose 178 per cent to Rs 420 million. Power sales during the six-month period increased 32 per cent to 10,817 MUs.

The improvement was supported by higher generation and sales across the company's assets. Meenakshi Energy Limited (MEL) in Andhra Pradesh recorded a 111 per cent YoY increase in Q2 power sales to 1,470 MUs. The plant's full 1,000 MW capacity was restored in 2025 following its acquisition in 2023. The business unit reported quarterly EBITDA of Rs 1.01 billion.

At the Jharsuguda Independent Power Plant (JIPP) in Odisha, plant availability rose to 98 per cent from 48 per cent in Q2 FY26. Power sales increased 187 per cent YoY to 873 MUs. Talwandi Sabo Thermal Plant (TSTP) in Punjab supplied 2,945 MUs during the quarter, up 6 per cent YoY, while its plant availability stood at 79 per cent against 90 per cent a year earlier.

The company also reported that its Sakti unit was synchronised on 25 October 2026, with stable operations expected to contribute to EBITDA and cash generation.

Vedanta Power's net debt-to-EBITDA ratio improved to 4.47 times at the end of Q2 FY27, compared with 9.82 times a year earlier and 5.38 times in Q1 FY27. Net debt stood at Rs 74.44 billion, down from Rs 77.04 billion in the previous quarter, while cash balances were Rs 10.63 billion. The company also reported rating upgrades to CRISIL AA- and ICRA AA- and its inclusion in the Nifty 500 and Nifty Smallcap 250 indices.

Domestic coal linkages and contracted supply arrangements provide fuel and revenue visibility. The company said it had secured 85 per cent of its coal requirements through long-term arrangements. At MEL, these include a five-year power purchase agreement for 300 MW with Tamil Nadu Power Development Corporation.

On the sustainability front, the company reported a 51 per cent YoY reduction in freshwater consumption and 65 per cent ash utilisation. It has planted 902,000 trees across its assets and reported 100 per cent saline water operations at MEL. It also highlighted biomass co-firing at TSTP and community initiatives that have reached more than 170,000 women and children across four states. Local employees account for 76 per cent of its workforce.

Rajinder Singh Ahuja, CEO and Whole-time Director, Vedanta Power, said the quarterly performance reflected improved asset efficiency and the contribution of additional capacity. He added that the company would focus on operational efficiency and expansion to meet India's growing demand for reliable power.

Pankaj Jha, Chief Financial Officer, Vedanta Power, attributed the improvement in profitability to higher volumes, better realisations, cost discipline and financial efficiency. He said the company would continue to prioritise deleveraging and reducing its cost of funds as new capacity comes into operation.

The company is targeting a position among India's top three private thermal power producers by FY33, with its strategy centred on improving asset reliability, organic expansion and the turnaround of acquired capacity.