Vedanta Power reports net loss of ₹1,713.26 crore in FY26
Vedanta Power Limited reported a net loss of ₹1,713.26 crore for FY26, a sharp decline from the net profit of ₹31.84 crore in FY25, largely due to exceptional items of ₹1,737.81 crore. Revenue from operations increased to ₹5,453.18 crore from ₹5,223.40 crore in the previous year. The company's board approved the audited financial statements on April 24, 2026.
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Vedanta Power Limited reported a net loss of ₹1,713.26 crore for the financial year ended March 31, 2026, compared to a net profit of ₹31.84 crore in the previous year. The company recorded revenue from operations of ₹5,453.18 crore for FY26, up from ₹5,223.40 crore in FY25. The financial performance was significantly impacted by exceptional items amounting to ₹1,737.81 crore, including provisions for statutory impacts of new labour codes and a mega power benefit reversal.
Financial Performance
The company’s total income for FY26 stood at ₹5,497.22 crore, while total expenses increased to ₹5,464.44 crore. Finance costs for the year were ₹606.66 crore, and depreciation and amortisation expenses amounted to ₹444.85 crore. The board of directors approved the audited financial statements for the year ended March 31, 2026, on April 24, 2026.
| Metric | FY26 (₹ in crore) | FY25 (₹ in crore) |
|---|---|---|
| Revenue from Operations | 5,453.18 | 5,223.40 |
| Net Profit/(Loss) | (1,713.26) | 31.84 |
| Total Income | 5,497.22 | 5,244.21 |
| Total Expenses | 5,464.44 | 5,234.01 |
| Finance Costs | 606.66 | 619.08 |
Operational Highlights and Disclosures
Vedanta Power’s operations are concentrated in a single segment, power generation, with revenue derived primarily from its sole customer, Punjab State Power Corporation Limited (PSPCL). The company reported that it had incurred cash losses of ₹516.94 crore in the current financial year, whereas it did not incur any cash losses in the immediately preceding year. The auditor, S.R. Batliboi & Co. LLP, stated that based on their examination, no material uncertainty exists regarding the company’s ability to meet its liabilities as and when they fall due within a period of one year from the balance sheet date.
The company also disclosed that it received a demand for a penalty of ₹83 crore for under-utilization of biomass as a co-fuel during FY 2024-25, against which it has filed an appeal before the National Green Tribunal.
What is the expected timeline for resolution regarding the ₹83 crore biomass co-fuel penalty appeal before the National Green Tribunal?
How will the company address the recurring cash losses of ₹516.94 crore to ensure liquidity and operational stability in FY27?
Are there further exceptional items anticipated in the coming year related to the full implementation of the new labour codes?
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