Vedanta Power Limited Announces Financial Results for FY2026, Reporting Net Loss of 1,713.26 Crore
Vedanta Power Limited, formerly known as Talwandi Sabo Power Limited, has released its Audited Financial Statements and Annual Report for the financial year ending March 31, 2026. The results reflect the company's operations within a single segment: power generation.The company reported a substantial decrease in profitability compared to the previous fiscal year.
Financial Performance Overview (FY 2026)
Based on the Statement of Profit and Loss, the following key figures were reported for the financial year ended March 31, 2026:
- Revenue from Operations: The company recorded a revenue of 5,453.18 Crore, an increase compared to 5,223.40 Crore in FY 2025.
- Total Expenses: Total expenses for the year amounted to 5,464.44 Crore.
- Net Profit/Loss before Tax: The company reported a net loss of (1,713.26) Crore, contrasting with a profit of 31 million recorded in FY 2025.
- Total Comprehensive Income: Including Other Comprehensive Income (OCI) of (0.41) Crore, the total comprehensive income was (1,713.67) Crore.
The company’s capital structure stands at a total equity amounting to 3,206.61 Crore. The Equity Share Capital stood at 3,20,66,09,692 as of March 31, 2026.
Operational and Risk Management
The company's operations are concentrated in the power generation segment.
In terms of financial risk management, the company’s Board has approved policies covering liquidity, currency, interest rate, and counterparty risks. The company actively seeks to manage risks and mitigate exposure through proven financial instruments. A detailed analysis shows that:
- The maximum credit exposure for the company as of March 31, 2026 is estimated at 1,383.12 Crore (compared to 2,659.64 Crore in March 31, 2025).
- For the year, the company recognized a total finance cost of 606.66 Crore.
Balance Sheet Snapshot
Key elements from the financial statements as of March 31, 2026, are summarized below:
| Financial Metric | Value (Crore) |
|---|---|
| Total Equity | 3,206.61 |
| Net Debt to Capital Ratio | 2.99 |
| Debt Service Coverage Ratio (DSCR) | 1.19 |
| Inventory Turnover Ratio | 19.46 |
Related Party and Commitment Details
Regarding related party transactions, the company reported a total of 6,619.85 Crore in financial liabilities as at March 31, 2025. During the year, there were various activities with related parties, including loans from Vedanta Limited amounting to 669.00 Crore and interest and guarantee commission from Vedanta Limited totaling 62.42 Crore.
The company also noted that its commitment portfolio includes:
- Estimated amounts of contracts remaining for execution at a capital account not provided for (net of advances) amounted to 4.96 Crore (compared to 1.28 Crore in the previous year).
- A Power Purchase Agreement (PPA) with Punjab State Power Corporation Limited (PSPCL) spanning twenty five years, which is classified as an operating lease based on company policy. The contingent rent recognized during the year was reported at 1,254.53 Crore.
Credit Risk Management
The company maintains a risk management policy that covers liquidity, currency, interest rate, and counterparty risk. A significant focus area remains credit risk.
The company’s maximum credit exposure to credit risk as of March 31, 2026 is in the range of its total lending capacity, which was previously reported at 2,650.93 Crore (March 31, 2025). The report notes that the company has a strong chance and management assessments indicate no material adjustments are required regarding the financial statements for the current year.
VEDPOWER Stock Price Movement
Today, shares of Vedanta Power Limited edged higher in post-market trading, settling at ₹40.00 after gaining 1.12%. The stock demonstrated solid market activity, with 118.61 million shares traded as the equity moved within a wide intraday range established by its high and low prices.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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