Vedanta Power Ltd (VEDPOWER) Q1 FY27 Earnings Call: Targets 4.8 GW by FY27, EBITDA Jumps 54% YoY

Vedanta Power Ltd held its Q1 FY27 earnings call on July 29, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Vedanta Power starts FY27 with double-digit growth

• Rs.3,662 Cr revenue — up 18% YoY in Q1 FY 2026-2027.
• Rs.515 Cr EBITDA — up 54% YoY, driven by strong operational performance and better realizations.
• 5,224 mn units sold — up 38% YoY in Q1 FY 2026-2027.
• 1.3x net debt-to-EBITDA — with ROCE of 16%; net debt post-demerger adjustments stood at Rs.2,733 Cr as of 26 Jun 2026.
• ~Rs.1,130 Cr cash and equivalents — with net debt flat QoQ in Q1 FY 2026-2027.

4.2 GW fleet with fuel security and merchant tailwinds

• India's power demand hit an all-time high of 271 GW in May 2026 — management cited this as the demand backdrop for the thermal cycle.
• Vedanta Power, India's fifth-largest private thermal company with 4.2 GW operating assets — aims to reach 4.8 GW by end FY 2026-2027 and "plans to add ~7.2 GW from FY 2030 onwards."
• 74% of total volume is secured — via medium/long-term PPAs; 85% of coal requirement is backed by long-term coal linkages.
• Minakshi Energy posted its highest-ever quarterly EBITDA of Rs.112 Cr — on record sales of 1,350 mn units; coal cost growth was contained to 12% YoY despite a 60% import coal price rise by using 65%–70% Indian coal.
• Minakshi's 100% domestic coal plan — remains on track to improve cost competitiveness.
• Talwandi Sabo availability improved to 86% — from 77% QoQ, with the highest NCR-region biomass co-firing rate of 7.9%; ash utilization was 94%, generating Rs.9 Cr of ash sale revenue.

Return-to-service path and favourable regulatory orders

• Shakti Energy Unit 1 revival work is 26% complete — contractor on site for about a month; management targets restart by end-Sep to first-week-Oct 2026 (Q2–Q3 FY 2026-2027) and currently sees no hurdles.
• Unit 2 revival activities are on plan — targeted for completion by end FY 2026-2027; the Unit 1 disruption remains under insurance claim.
• Final boiler fitness certification is still required — before Shakti Unit 1 can restart; boiler and factory inspectors have been intimated and are conducting in-stage inspections.
• Jharsuguda received a favourable regulatory outcome — in the short-supply matter, with a potential refund of Rs.300 Cr; a state commission order also supports annual ash cost recovery of Rs.40 Cr.

600 MW locked in, ~1,000 MW kept for right-rate contracts

• 600 MW of recently commissioned capacity is contracted — out of 1,600 MW newly commissioned capacity (700 MW at Meenakshi, 600 MW at Athena), leaving ~1,000 MW untied.
• 500 MW is tied to Tamil Nadu — on a five-year PPA, described as one of the best rates among PPAs signed in FY 2025-2026.
• A one-year Kerala contract — at Rs.5.96–5.97/kWh, adds to the 600 MW contracted total.
• DAM rates are averaging ~Rs.1 higher in FY 2026-2027 — versus FY 2025-2026; management is being selective rather than booking PPAs at any rate.
• Management hopes to contract the remaining ~1,000 MW — at the right rate during FY 2026-2027, citing growing Indian power demand.

Upgrades, liquidity and a clear FY27 project slate

• ICRA and CRISIL upgraded Vedanta Power's ratings in Q1 FY 2026-2027 — with a stable outlook; commercial paper was raised at 8.25%.
• Capital allocation priorities — maintaining liquidity, reducing leverage, enhancing fuel security, and completing Shakti Unit 1 restoration and Unit 2 project.
• Management expects these projects to materially strengthen earnings and cash generation — over the next 2–4 quarters from Q1 FY 2026-2027.
• Strong operating cash flows — funded pre-monsoon working capital requirements and ongoing growth projects in Q1 FY 2026-2027.
• Next earnings call — scheduled for end-Oct 2026 to discuss Q2 FY 2026-2027 results.