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Vedanta Power dropped more than 3% on Thursday, July 30, after the company reported a net loss of Rs. 423 crore for Q1 FY27. Weak earnings disappointed investors despite a sharp revenue increase during the quarter.
The stock touched an intraday low of Rs. 34.03 after falling 3.65%, while the Nifty 50 index plateaued.
The company announced its first quarterly results after the Vedanta demerger. Revenue increased 31.3% to Rs. 2,607 crore from Rs. 1,986 crore in FY26.
Strong sales could not improve profitability as operating margins weakened and one-time exceptional losses affected the final numbers.
Vedanta Power posted EBITDA of Rs. 291 crore, compared with Rs. 417 crore in the same quarter last year. EBITDA margin also declined to 11.2% from 21%, showing pressure on operating performance. Higher costs reduced earnings despite better business activity.
Vedanta Power sales rose 38% year over year to 5,224 million units. Better generation at Meenakshi Energy and improved performance at Talwandi Sabo Thermal Plant supported overall operations. However, a one-time exceptional loss of Rs. 487 crore resulted in a quarterly loss.
The company currently operates 4,180 MW of installed capacity, making it India's fifth largest private merchant thermal power producer.
The company plans to expand capacity further while improving fuel security and operational efficiency. Investors will likely watch upcoming quarters closely for stronger margins and an ROI.
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