Market participants are eagerly awaiting the listing of Vedanta Ltd’s four demerged entities, including Vedanta Power, with the company earlier indicating that the businesses are likely to hit the bourses by mid-June 2026.
The demerger is aimed at unlocking shareholder value by creating pure-play businesses, allowing investors to gain targeted exposure to individual sectors such as power, aluminium, and other metals, instead of investing in Vedanta’s diversified portfolio.
As the listing draws closer, shareholders are keenly assessing the prospects of each standalone entity and the opportunities they may offer.
Here is a look at Vedanta Power’s business details
Vedanta Power name change
Last week, on June 3, Vedanta Ltd announced that the Registrar of Companies (RoC), under the Ministry of Corporate Affairs (MCA), had approved the change in the name of its power subsidiary from Talwandi Sabo Power Limited to Vedanta Power Limited, effective June 3, 2026.
Accordingly, the company began operating under the name Vedanta Power Limited on June 3, 2026.
Vedanta Power: What you need to know
Vedanta Power, which was part of Vedanta Ltd’s diversified portfolio, is being carved out into a standalone listed entity.
Vedanta Ltd itself is the flagship Indian company of Vedanta Resources, the London-headquartered natural resources group founded by Anil Agarwal.
Vedanta Power business
Vedanta Power is the power generation business. The company has a thermal power generation capacity of 4,780 MW and supplies electricity to distribution companies under long-term power purchase agreements.
Its operations span multiple states, with power supplied to utilities and other customers through a mix of long-term contracts.
The company is expected to benefit from India’s growing electricity demand, although its performance will also depend on factors such as plant utilisation, fuel costs, and power tariffs.
In its investor presentation, Vedanta Power has outlined an ambition to become one of India’s top three private thermal power players by FY33 through a combination of organic expansion and asset turnarounds.
Vedanta Power portfolio
The portfolio comprises Talwandi Sabo, in Punjab (1,980 MW), Vedanta Power Meenakshi Energy, in Andhra Pradesh (1,000 MW), Vedanta Power Sakti, Chhattisgarh (600 MW operational with another 600 MW under commissioning), and Vedanta Power Jharsuguda, Odisha (600 MW).
Growth and revenue projections
Vedanta Power has outlined a strong growth roadmap driven by capacity expansion and the ramp-up of acquired assets.
Vedanta Power’s revenue, as mentioned in the investor presentation, is projected to increase from ₹6,022 crore in FY25 to ₹14,105 crore by FY29, representing approximately 2.3x growth over the period.
EBITDA is expected to rise from ₹650 crore in FY25 to ₹3,262 crore in FY29e, implying nearly 5x growth, while free cash flow is projected to improve from negative ₹347 crore in FY25 to positive ₹2,233 crore by FY29.
This growth is expected to be supported by the commissioning of additional capacity at Sakti, expansion projects across the portfolio, and the company’s ambition to increase installed capacity from 4.18 GW currently to nearly 12 GW by FY33.
What market experts are saying
Harshal Dasani, Business Head at INVasset PMS, said Vedanta Power is entering the market at an opportune time, with India’s electricity demand being driven by factors such as rising temperatures, manufacturing growth, data centres, urbanisation, and expanding household electrification.
“India’s power demand is no longer a seasonal story. In this environment, dependable generation capacity carries strategic value, particularly as peak demand continues to test the grid,” he said.
However, Dasani added that investors should assess the company on fundamentals such as cash flows, fuel security, plant availability, and debt levels rather than solely on the demand narrative.
“Power is a compelling theme, but it remains a regulated and capital-intensive business where execution matters more than headlines. If Vedanta Power can demonstrate stable operations, disciplined leverage, and predictable offtake, the market may reward it with a premium valuation. But if the listing is driven purely by sector enthusiasm, the margin for error could be limited,” the expert added.
What valuation are analysts assigning to Vedanta Power?
Vedanta Power is expected to be listed by mid-June. Ahead of the listing, analysts have assigned varying valuations to the company.
According to a note shared by Vedanta Power, Investec has valued the stock at ₹29 per share, while CLSA has assigned a valuation of ₹35 per share.
The estimates provide an early indication of how analysts view the standalone power business, though the stock’s eventual market price will depend on investor sentiment, sector outlook, and the company’s operational and financial performance after listing.