Vedanta Power has reported a remarkable operational performance for the first quarter of FY27, with power sales soaring by 38% compared to the same period last year. This growth is attributed to enhanced generation at Meenakshi Energy and consistent output from the Talwandi Sabo Thermal Plant.
On Monday, shares of Vedanta Power are expected to attract attention following the announcement of impressive sales figures for the June quarter, which reflects the company’s operational improvements post-demerger from Vedanta Ltd.
In its production update shared with the exchanges, Vedanta Power revealed that total power sales reached 5,225 million units in Q1 FY27, up from 3,784 million units in the previous year.
However, on a quarter-over-quarter basis, there was a 6% decrease from the 5,530 million units sold in the March quarter. The company emphasized that these figures should be interpreted in light of the recent demerger.
Meenakshi Energy demonstrated the most significant growth, with sales increasing by 245% year-on-year to 1,350 million units, compared to 391 million units in the same quarter last year. This figure also marks a 16% rise from the 1,161 million units sold in the prior quarter, as the previous year’s performance was based on only one 300-MW unit, while the current quarter includes the expanded capacity of 1,000 MW.
The Talwandi Sabo Thermal Plant, the largest asset of the company, recorded power sales of 2,723 million units, which remained stable compared to 2,715 million units a year earlier, representing a 14% increase from the previous quarter’s 2,386 million units.
The plant’s availability factor improved to 86%, up from 77% in the March quarter. The agreement with the Punjab government ensures compensation based on a normative availability of 80%, which the plant surpassed during this period.
At the Jharsuguda Thermal Plant, power sales reached 687 million units, slightly higher than 678 million units from the same period last year. However, this was a 23% decline from the 896 million units in the March quarter. The availability factor increased to 93% from 66% a year ago, remaining relatively unchanged from 94% in the previous quarter.
In contrast, the Sakti Thermal Plant, previously known as Athena Power Plant, faced challenges, with sales plummeting to 465 million units from 1,087 million units in the March quarter. The decline was attributed to a boiler explosion in Unit I, which has kept the plant temporarily shut since April 14, affecting its operational capacity.
Currently, Vedanta Power boasts an installed capacity of 4.2 GW and is working on an additional 0.6 GW under Shakti Unit II. Its assets include the 1,980 MW Talwandi Sabo plant in Punjab, the 1,000 MW Meenakshi facility in Andhra Pradesh, the 1,200 MW Sakti plant in Chhattisgarh, and the 600 MW Jharsuguda unit in Odisha.
Investment analysts have varied opinions regarding Vedanta Power’s valuation. Emkay suggests a share value of approximately Rs 51.7, while Kotak Institutional Equities estimates it at Rs 60. Nuvama’s valuation indicates around Rs 47 per share, while CLSA’s assessment approximates it to Rs 35 per share.
The company is focused on becoming one of India’s leading private thermal power producers by FY33 through strategic capacity expansions and asset enhancements. It benefits from several long-term power purchase agreements with state utilities, which provide a certain level of revenue stability.
(Disclaimer: The views and recommendations expressed by experts are their own and do not reflect the positions of The Economic Times.)
