Vedanta Power Marks Post-Demerger Debut with 38% YoY Jump in Q1 FY27 Power Sales

Vedanta Power Limited (VPL)-recently demerged from parent entity Vedanta Limited-has posted a strong operational performance for the first quarter of the 2027 financial year. Total power sales surged 38% year-over-year, climbing to 5,225 million units (MU) compared to 3,784 MU in the corresponding quarter of the previous fiscal year.

Because the landmark demerger became legally effective on May 1, 2026, management clarified that the reporting period blends both pre and post-demerger operational phases. To maintain structural clarity, the performance data encapsulates the collective capacities of all legacy thermal assets now running under the consolidated VPL banner.

Operational Breakdown Across Key Generating Assets

The mixed sequential and annual performance trends across the company's 4.2 Gigawatt (GW) operational portfolio highlight distinct asset-level developments:

Meenakshi Energy Limited (Andhra Pradesh): The 1,000 Megawatt (MW) facility was the stellar growth driver for the quarter, recording a massive 245% YoY surge in power sales to land at 1,350 MU. This dramatic expansion is attributed to the plant operating on its full expanded capacity baseline, compared to Q1 FY26 when only a single 300 MW unit was functioning. Sequentially, the plant logged a 16% volume increase over the 1,161 MU sold in Q4 FY26.

Talwandi Sabo Thermal Plant (TSTP, Punjab): VPL's largest single asset (1,980 MW) delivered flat YoY sales volume at 2,723 MU, but managed a solid 14% sequential increase over the previous quarter's 2,386 MU. Crucially, the plant's Availability Factor (PAF) recovered remarkably to 86%, up from 77% in the previous quarter. This positions the asset well above the 80% normative requirement specified in its Power Purchase Agreement (PPA) with the Punjab State Government, ensuring optimal regulatory compensation.

Jharsuguda Thermal Plant (Odisha): The 600 MW capacity asset generated 687 MU in sales, holding relatively stable against 678 MU in Q1 FY26 but declining 23% sequentially against the high-demand winter base of 896 MU in Q4 FY26. The facility maintained an exceptional Plant Availability Factor of 93%.

Sakti Thermal Plant (Chhattisgarh): Formerly recognized as the Athena Power Plant, the 1,200 MW asset registered sales of 465 MU during the quarter-a 57% collapse sequentially from 1,087 MU in Q4 FY26. Management revealed that the asset has been temporarily shut down since April 14, 2026, following a critical boiler blast incident in Unit-I, which heavily constrained output during the quarter.

Strategic Footprint and Energy Security Outlook

With its current active thermal asset portfolio totaling 4.2 GW, VPL ranks as the 5th largest private sector thermal power producer in India. The company is actively working to augment its grid presence by executing an additional 0.6 GW of capacity via Unit-2 of the Shakti project, which is currently in its deployment phase.

Source : Equity Bulls

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VedantaPower Q1FY27 BusinessUpdate