Negative other income turns Vedanta Power's operating profit into a Q1 loss
The consolidated loss came despite Rs 291 cr of operating profit, while management linked Sakti's weaker sales to a boiler incident.
Filed 29 Jul 2026, 17:49 IST · after market close · Vedanta Power Ltd (VEDPOWER)
Key takeaways
- Consolidated Q1FY27 ended with a net loss of Rs 423 cr as negative other income of Rs 478 cr overwhelmed Rs 291 cr of operating profit.
- Operating margin was 11.16%, 20.83 percentage points below the 31.99% median for 9 reported Utilities peers.
- Management said the 600 MW Sakti Unit 1 revival was 26% complete, with startup planned by Q2FY27.
Price around the results
Rs 291 cr operating profit did not prevent a quarterly loss
On a consolidated basis, negative other income of Rs 478 cr was larger than operating profit of Rs 291 cr, taking profit before tax to a loss of Rs 608 cr. Interest of Rs 196 cr and depreciation of Rs 225 cr added to the pressure below the operating line. The reported tax line was negative Rs 185 cr, but net profit still stood at a loss of Rs 423 cr, making the quarter's earnings quality dependent on operating profit rather than the reported non-operating items.
Operating margin trails the Utilities peer median by 20.83 points
Vedanta Power's 11.16% operating margin was 20.83 percentage points below the 31.99% median among 9 Utilities peers that had reported the quarter. It ranked first from the bottom in that comparison, indicating that the gap was sector-wide in scope rather than a small margin variance.
Sakti disruption contrasts with better plant and volume indicators elsewhere
Management said Sakti's sales declined because of a boiler incident on April 14. The company said Meenakshi Energy's quarterly sales rose 16.00% QoQ to 1,350 MU, while Talwandi Sabo's Plant Availability Factor improved from 77% to 86% QoQ. Management also said Meenakshi is moving from imported to 100% domestic coal, which it linked to better margins and more stable revenue visibility in future.
Capacity plans centre on Sakti's 600 MW commissioning
Management said Sakti has 600 MW under commissioning, taking operational capacity to 4,180 MW. It plans to start Sakti Unit 2 by Q4FY27 and has outlined a Sakti expansion to 7,200 MW and total capacity of 11,980 MW by FY33. The company also said it recently secured a 100 MW power contract with Kerala.
Results were filed after market close
The consolidated results were filed at 17:49 IST on 29 July 2026, after market close.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹2,607 cr |
| Other income | ₹-478 cr |
| Expenses | ₹2,316 cr |
| Operating profit | ₹291 cr |
| Operating margin (%) | 11.16% |
| Interest | ₹196 cr |
| Depreciation | ₹225 cr |
| Profit before tax | ₹-608 cr |
| Tax | ₹-185 cr |
| Net profit | ₹-423 cr |
| EPS (₹) | ₹-1.08 |
Operating margin of 11.16% compares with a Utilities sector median of 31.99% across 9 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Meenakshi Energy achieved quarterly sales of 1,350 MU, up 16% QoQ.
- Talwandi Sabo's Plant Availability Factor increased from 77% to 86% QoQ.
Guidance & outlook
- The company targets a 600 MW Unit 1 revival startup at Sakti by Q2 FY27.
- The company plans to start up Sakti Unit 2 by Q4 FY27.
- The company aims to contribute to India's plan to scale nuclear capacity to 600 MW.
Planned next quarter
- Sakti Unit 1 is planned to start up by Q2 FY27 after 26% of the revival was completed.
Expansion
- Sakti has 600 MW under commissioning, taking operational capacity to 4,180 MW.
- The capacity roadmap shows Sakti expansion to 7,200 MW and total capacity of 11,980 MW by FY33.
New orders
- The company recently secured a 100 MW power contract with Kerala.
New initiatives
- The company implemented ITMS to reduce truck turnaround time by up to 50%.
- Meenakshi Energy is transitioning from imported to 100% domestic coal.
Competition
- Vedanta Power describes itself as India's fifth-largest private-sector merchant thermal power producer.
Problems & risks
- Sakti sales declined because of a boiler incident on April 14th.
- The Jharsuguda short-supply matter remains sub-judice at the Supreme Court.
What to watch
- Whether Sakti Unit 1 reaches the management-stated Q2FY27 startup after 26% of the revival was completed.
- Whether operating margin moves closer to the 31.99% Utilities peer median from 11.16%.
- Whether Meenakshi's 1,350 MU quarterly sales and Talwandi Sabo's 86% Plant Availability Factor are sustained.