Vedanta Power Ltd (VEDPOWER) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Pankaj Jha (Vedanta Power Ltd): So, thank you, Ahuja ji, and good evening, everyone. As highlighted by the CEO, Q2 FY '27 was a strong quarter financially with improvement across revenue, EBITDA, underlying profitability and leverage. Let me begin with the income statement. Revenue from operations increased 38% YoY to INR2,908 crores compared with INR2,104 crores in Q2 FY '26. This was supported by a 26% increase in sales volume to 5,593 million units, improvement in NSR to INR5.2 per kilowatt hour from 4.7 in the corresponding quarter last year. EBITDA increased 122% YoY to INR421 crores compared with INR192 crores in Q2 FY '26, and was also 45% higher sequentially compared with INR291 crores in Q1. The year-on-year EBITDA improvement was supported by higher volumes, better NSR, improved operating performance across the portfolio. An important contributor was Meenakshi, which generated INR101 crores of EBITDA during the quarter. The increasing share of domestic coal is an important part of our effort to make this performance structurally more sustainable. Below EBITDA, finance cost was INR200 crores for the quarter compared with INR172 crores in Q2 FY '26. The increase is due to capitalization at Shakti and Meenakshi. Consequently, PAT before exceptional item improved to INR101 crores compared with a loss of INR142 crores in Q2 FY '26. Exceptional items net of tax were INR18 crores during the quarter, resulting in reported PAT of INR83 crores. This translated into our first positive quarterly EPS of 0.21 per share. Turning to the balance sheet, our focus on deleveraging and liquidity remains unchanged. Our balance sheet and liquidity remains strong with cash and cash equivalent at INR1,063 crores and net debt reducing to INR7,444 crores from INR7,704 crores a quarter ago. Our net debt to EBITDA ratio improved materially to 4.47x from 9.82x a year ago. Our credit profile also remains strong with ICRA and CRISIL rating of AA- with stable outlook. At the half yearly level, revenue increased 35% YoY to INR5,515 crores, while EBITDA increased 76% to INR712 crores. Meenakshi sold 2,820 million units in H1 and delivered stellar half-yearly EBITDA of INR213 crores. PAT before exceptional item improved to INR42 crores compared with a loss of INR54 crores in H1 FY '26. Our priorities for the second half are straightforward: convert operational recovery into sustainable cash earnings; maintain discipline over working capital and finance cost; continue reducing leverage; and ensure that growth capital is deployed against project with secure offtake and appropriate returns. With the improvement in our operating portfolio, strengthening balance sheet and the return of Shakti Unit 1, we enter the second half of FY '27 from a stronger position. With that, I'm handing over to operator for any questions.
Moderator: participants to ask questions, please press star and one now. The first question is from the line of Kirtan Sompura from Nuvama Wealth Management. Please go ahead.
Kirtan Sompura (Nuvama Wealth Management): Hello.
Kirtan Sompura (Nuvama Wealth Management): Good evening.
Kirtan Sompura (Nuvama Wealth Management): Good evening, sir. Congratulations on spectacular numbers. I had couple of questions. First was, for our brownfield expansion, if we get coal linkage from Coal India, what is this cost likely to be for the incremental capacity that we set up, in terms of cost per unit on variable cost and total cost basis?
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