Shares of Vedanta Power and Vedanta Oil and Gas rallied up to 14% on the National Stock Exchange (NSE), responding to July-September quarter earnings that showed sharp recoveries, economictimes.indiatimes.com reported.
The two companies, along with Vedanta Aluminium Metal and Vedanta Iron and Steel, were spun off from parent firm Vedanta and listed separately in June this year. Both entities have experienced significant volatility since their market debut.
The Bottom Line
- Vedanta Power Rebound: Swung to a net profit of Rs 83 crore for Q2 FY27, backed by a 38% year-on-year rise in revenue to Rs 2,908 crore.
- Vedanta Oil and Gas Earnings: Posted a consolidated net profit of Rs 746 crore with revenue up over 6% year-on-year to Rs 2,488 crore, driven by cost optimization and price realizations.
- Post-Demerger Trajectory: Both equities faced steep corrections after hitting early July highs, though the recent earnings print pushed shares past key psychological marks.
Financial Turnaround at Vedanta Power
Vedanta Power reported a net profit of Rs 83 crore for the second quarter of the ongoing financial year, marking a sharp turnaround from a net loss of Rs 1,688 crore in the same period last year and a loss of Rs 423 crore in the first quarter of FY27, economictimes.indiatimes.com reported. Revenue from operations increased 38% year-on-year to Rs 2,908 crore.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged 122% year-on-year to Rs 421 crore, marking the company’s highest-ever quarterly performance. Profit after tax before exceptional items jumped 171% to Rs 101 crore.
Oil and Gas Segment Realizations and Cost Controls
Vedanta Oil and Gas reported a consolidated net profit of Rs 746 crore for the second quarter, improving from a net loss of Rs 91 crore in the year-ago period, though down from the Rs 945 crore net profit recorded in the first quarter of FY27, economictimes.indiatimes.com noted. Revenue grew just over 6% year-on-year to Rs 2,488 crore.
EBITDA jumped 34% year-on-year to Rs 1,393 crore. The firm attributed the performance to higher price realisations and a continued focus on cost optimisation, alongside broader corporate plans to deploy a $200 million push to lift Rajasthan oil output.
Market Performance Since the June Demerger
The two entities debuted on the NSE on June 15. Vedanta Power listed at Rs 41.80 apiece with a market capitalisation of Rs 16,149.90 crore, while Vedanta Oil and Gas opened at Rs 38 per share with a valuation of Rs 14,859.47 crore, economictimes.indiatimes.com reported.
Both stocks faced sustained selling pressure after hitting record highs near Rs 50 and Rs 47.60 respectively in early July. Vedanta Power touched a record low of Rs 27.50 earlier in the week before rebounding to trade at Rs 31.80, remaining more than 24% lower than its listing price. Vedanta Oil and Gas fell to a record low of Rs 26.41 last week before crossing the Rs 30 threshold following the Q2 earnings release.
| Company | Listing Price (June) | Q2 FY27 Revenue | Q2 FY27 Net Profit / (Loss) |
|---|---|---|---|
| Vedanta Power | Rs 41.80 | Rs 2,908 crore | Rs 83 crore |
| Vedanta Oil and Gas | Rs 38.00 | Rs 2,488 crore | Rs 746 crore |
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
