Vedanta Power Shares Fall 3% Despite 38% Q1 Sales Jump—July 09

Vedanta Power’s shares fell 2.8% to Rs 44.45 on Monday despite reporting a strong 38% year-on-year jump in Q1 power sales to 5,225 million units. The company, which listed on BSE and NSE on June 15, saw Meenakshi Energy surge 245% to 1,350 million units, but brokerages remain divided on valuation with targets ranging from Rs 35 to Rs 60 per share.

Meenakshi Energy drives Q1 growth

Meenakshi Energy posted the sharpest growth among Vedanta Power’s assets. Power sales surged 245% year-on-year to 1,350 million units from 391 million units in the same quarter last year. The company said the year-ago period reflected operations from only one 300-MW unit, while the latest quarter includes the expanded 1,000-MW capacity operating at full installed capacity.

Talwandi Sabo holds steady performance

Talwandi Sabo Thermal Plant remained the company’s largest generating asset, reporting sales of 2,723 million units during Q1, broadly unchanged from 2,715 million units a year earlier. Its Plant Availability Factor stood at 86%, exceeding the normative availability level of 80% under its power purchase agreement with the Punjab government. Sequential sales fell 14% from 2,386 million units in the March quarter.

Share price decline despite strong results

Vedanta Power shares fell 2.8% to Rs 44.45 on the BSE on Monday, a day after the company released its Q1 production update. Brokerages remain divided on the company’s valuation, with price targets ranging from Rs 35 to Rs 60 per share. On a sequential basis, total power sales declined 6% from 5,530 million units in the March quarter, though the company noted this should be viewed in the context of its demerger from Vedanta Ltd during Q1 FY27.

Long-term capacity expansion plans

Vedanta Power is evaluating a foray into hydro, battery storage, and nuclear energy as part of a long-term diversification plan. The company plans to scale its capacity to 20 GW and aims to be among the top-three private-sector power companies in India. With a total thermal power capacity of 4,780 MW, the company supplies power to discoms nationwide through long-term partnerships.

Final Thoughts

Vedanta Power’s 38% Q1 sales growth reflects strong operational execution at Meenakshi Energy, but the market’s 2.8% share decline signals investor caution on valuation. With brokerages split between Rs 35 and Rs 60 targets, the stock remains a mixed signal for investors until consensus clarifies.

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