Vedanta Power Share Price Records Its Biggest One-Day Rally; Three Key Factors Behind the Surge

Vedanta Power has been rebuilding output across acquired and underutilised thermal assets, including the 1,000 MW Meenakshi Energy plant in Andhra Pradesh and the Jharsuguda Independent Power Plant in Odisha. The operating recovery translated into its highest-ever quarterly performance in the quarter ended September 30, 2026, as stronger electricity volumes and realisations lifted revenue and profitability.

Three Key Factors Behind the Vedanta Power Share Price Rally

1. Improvement in Financial Performance

Vedanta Power reported a 38 per cent YoY increase in revenue to Rs 2,908 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 122 per cent to Rs 421 crore. EBITDA was also 45 per cent higher QoQ from Rs 291 crore in the June quarter. Profit after tax (PAT) before exceptional items stood at Rs 101 crore, compared with a loss of Rs 142 crore a year earlier and a loss of Rs 59 crore in the preceding quarter. Reported PAT stood at Rs 83 crore, against a loss of Rs 1,688 crore in Q2 FY26. The company also recorded its first positive earnings per share of Rs 0.21. For the first half of FY27, revenue rose 35 per cent YoY to Rs 5,515 crore, while EBITDA increased 17 per cent to Rs 712 crore.

2. Higher Power Sales and Improved Operational Performance

Quarterly power sales increased 26 per cent YoY to 5,593 million units, while net sales realisation improved to Rs 5.20 per kWh from Rs 4.74 per kWh. Meenakshi Energy contributed to the operational performance, reporting record sales of 1,470 million units, up 112 per cent YoY, along with EBITDA of Rs 101 crore. At Jharsuguda, plant availability increased to 98 per cent from 48 per cent a year earlier, helping EBITDA reach Rs 78 crore. Additionally, Vedanta Power synchronised Sakti Unit 1 on October 25, 2026. Startup activity for Sakti Unit 2 is planned by Q4 FY27, with sustained operations expected to contribute to cash generation.

3. Reduction in Debt and Improvement in Cash Flow

The company's balance sheet improved alongside its operating performance. Consolidated net debt declined by Rs 260 crore QoQ to Rs 7,444 crore as of September 30, 2026. The net debt-to-EBITDA ratio improved to 4.47 times from 5.38 times in the June quarter, indicating a reduction in leverage. Meanwhile, pre-capex free cash flow stood at Rs 418 crore, supporting the company's stated focus on deleveraging.

As of 10:30 AM on October 30, 2026, Vedanta Power shares were trading at Rs 33. The stock was up nearly 14 per cent from the previous close of Rs 28.82. Even after the move, the share price remained about 34 per cent below its 52-week high of Rs 48.60, while standing around 14 per cent above its 52-week low of Rs 28.23.

What This Means for Investors

The quarter provides evidence that Vedanta Power’s restored and ramping assets are beginning to convert higher availability into sales and operating profit. Meenakshi Energy’s contribution and Jharsuguda’s recovery in availability are particularly important because they expand generation from existing assets without requiring an equivalent increase in fresh capacity. Higher realisations also supported the earnings recovery, while Rs 418 crore of pre-capex free cash flow indicates that improved operations are feeding through to internal cash generation.

The development is potentially supportive for the investment case because the company has moved from losses to positive PAT before exceptional items and reduced net debt. However, leverage remains material at 4.47 times net debt-to-EBITDA, making sustained cash generation and disciplined capital allocation central to the next phase of the turnaround. The planned operational ramp-up of Sakti Unit 2 could strengthen earnings visibility over time, but stable commissioning and continued high plant availability will be the key execution conditions.

Disclaimer: The article is for informational purposes only and not investment advice.