Vedanta Power Limited

Utilities — Utilities - Independent Power Producers · NSE

₹32.40−₹0.13 (−0.40%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, the company is currently loss-making, small-cap size, which brings sharper price swings.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Vedanta Power Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Vedanta Power Limited builds, owns, and operates a coal based thermal power plant in Punjab. Vedanta Power Limited was formerly known as Talwandi Sabo Power Limited and changed its name to Vedanta Power Limited in June 2026.

IndustryUtilities - Independent Power Producers

SectorUtilities

Annual revenue₹8,891 Cr

How does it make money?

Turns over ₹8,891 Cr a year. Of every ₹100 of sales, about ₹-19 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -7.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +55% while net margin moved +1449% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+55%

Margin effect+1449%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.9% is weak
✗ ROE has fallen by 10.4 points over the period

Quality vs. Valuation

Company Quality

54/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

39/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

13.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

Nothing stands out as clearly improving on the years of data available.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from -2.3% to -12.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 6.0% to -7.7% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 3 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -2.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1,685 Cr in the latest reported year.
🔴Inventory building faster than salesFinancial
Inventory up 137% against revenue up 55% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 38% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.0x to -2.2x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.57 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from -2.3% to -12.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 15.7% CAGR
Latest reported year was 31.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 5.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ -2.2x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹477 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 4 neutral · 5 weak

Market Cap

₹12,649 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

2.84x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-5.62

Loss-making

Negative earnings per share — the business is losing money

ROE

0.9%

Weak

Weak capital efficiency

ROCE

-7.7%

Weak

Low return on total capital employed

Debt/Equity

0.71x

Moderate

Moderate leverage

Revenue Growth (YoY)

31.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-233.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹189 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

3.8%

Average

Average asset productivity

Operating Margin

2.5%

Weak

Thin margins leave little room for error

Net Margin

0.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.57

Tight

Tight short-term liquidity

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

32.2 / 34.0

Bearish alignment (short < long)

RSI (14)

47.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,746 Cr	₹5,267 Cr	₹6,021 Cr	₹8,891 Cr	+15.7%
EBITDA	₹1,050 Cr	₹1,053 Cr	₹663 Cr	₹1,589 Cr	+14.8%
EBITDA Margin	18.3%	20.0%	11.0%	17.9%	—
PAT (Net Profit)	-₹70 Cr	₹602 Cr	-₹506 Cr	-₹1,685 Cr	—
EPS	₹-0.18	₹1.54	₹-1.29	₹-4.31	—
ROE	-2.3%	16.6%	-3.7%	-12.8%	—
ROCE	6.0%	16.4%	0.0%	-7.7%	—
Total Debt	₹6,798 Cr	₹6,429 Cr	₹8,662 Cr	₹9,409 Cr	+11.4%
Free Cash Flow	₹1,368 Cr	₹1,098 Cr	₹738 Cr	₹477 Cr	-29.6%

🟢 Revenue has grown at 15.7% a year over 3 years.

🟢 EBITDA has grown at 14.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 17.9% over 3 years.

🔴 ROE has fallen from -2.3% to -12.8% over 3 years (-10.4 pts).

🔴 ROCE has fallen from 6.0% to -7.7% over 3 years (-13.7 pts).

🔴 Total Debt has grown at 11.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 29.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹23,820 Cr

Total Liabilities

₹10,629 Cr

Cash & Equivalents

₹798 Cr

Operating Cash Flow

₹556 Cr

Capex

-₹79 Cr

Shareholding (proxy)

Institutional Holding

11.0%

Insider Holding

58.5%

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

1 positive2 mixed3 general

Vedanta Power vs Tata Power vs Adani Power: Which Stock Is the Ultimate Winner in Power Stock Battle?

Goodreturns, 16 Oct

Vedanta Power shares jump 13% today after a 5-day loss - Can a rebound in the stock sustain? Tech experts decode

Livemint, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

VEDANTA POWER LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 16 Oct

Vedanta Power Q1 Result: Net Loss Widens To Rs 423 Crore vs Rs 88 Cr Profit; Revenue Up 31%

Goodreturns, 17 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Vedanta Power, Hindustan Zinc: How Vedanta stocks are performing amid benchmark rally

Upstox, 25 Sept

Vedanta Power, Vedanta Oil, Vedanta Iron shares jump; how do the demerged stocks stack up now?

Business Today, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health

WeakBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑