Vedanta Power, Vedanta Oil & Gas stocks decline up to 5% post Q1 earnings; here’s what triggered the fall

Vedanta Group demerged energy companies, Vedanta Power and Vedanta Oil & Gas shares declined up to 5% during the trading session on Thursday, July 30, after investors reviewed the April to June quarter earnings report for the financial year 2026-27.

NSE data showed that Vedanta Power shares declined 4.2% to their intraday and 52-week low of ₹33.82 apiece on Thursday’s market, compared to ₹35.32 apiece in the previous stock market close.

The shares were trading 2.6% lower after the day’s low level at ₹34.37 apiece, as per the exchange data.

While Vedanta Oil & Gas shares dropped around 5% to their intraday low of ₹33.20 apiece during the trading session on July 30, compared to ₹35.07 apiece at the previous equity market close, as per the exchange data.

Vedanta Oil & Gas stock was trading 4.3% lower at ₹33.54 apiece after the day’s low levels.

Investors were focused on Vedanta Power’s surge in ‘power and fuel costs’ in the Q1 earnings, which in turn weighed down the overall performance, while for Vedanta Oil & Gas it was the company’s declining EBITDA and margin concerns.

Why did Vedanta Group energy stocks fall today?

Vedanta Group’s newly demerged energy stocks, Vedanta Power and Vedanta Oil & Gas, both tanked during the trading session on July 30 as margin concerns and profitability remained key factors looming over investors' sentiment.

In the case of Vedanta Power, the company posted a net loss in the June quarter, along with which the power generation firm also recorded shrinking profitability in the period under review due to higher pressure on input costs.

Both the operational-level EBITDA (earnings before interest, tax, depreciation, and amortisation) and the EBITDA margins witnessed contraction in the first quarter, when compared year-on-year with the same period last year.

The pressure on margins comes against the backdrop of rising total expenses due to a 45% surge in power and fuel costs to ₹2,063 crore in Q1 FY27, from ₹1,425 crore in the corresponding period a year earlier.

For Vedanta Oil & Gas, investors were mostly focused on the oil production company’s margin contraction on a quarter-on-quarter basis, as in the Q1 earnings, the firm turning in profits was largely due to favourable commodity prices and healthy realisations.

With a marginal 3% increase in revenues, the company mostly benefited from the price in the global market, which surged due to the rise in overall cost of crude oil amid the West Asia conflict.

“As we advance a strong pipeline of near and medium-term growth opportunities including exploration drilling, enhanced oil recovery (ASP), and infill development campaigns aimed at arresting decline and enhancing production and resources,” said Jim Johnny Gast, Interim CEO and Whole Time Director of Vedanta Oil and Gas Limited, in the official statement.

How did Vedanta Power perform in Q1 earnings?

*Note: All data have been collected from Vedanta Power’s consolidated financial statements.

How did Vedanta Oil & Gas perform in Q1 results?

*Note: All data have been collected from Vedanta Oil & Gas’ consolidated financial statements.

Stock performance

The company shares were trading around 2% higher in the last five market session basis, as per NSE data.

Vedanta demerger details

After the National Company Law Tribunal (NCLT) approved the Vedanta Group demerger in December 2025, the flagship company Vedanta Ltd was demerged into four entities: Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas and Vedanta Iron and Steel.

Each of the four companies was listed on the stock exchanges alongside the flagship company Vedanta Ltd.

The corporate demerger was aimed at helping to simplify Vedanta Group's corporate structure with sector-focused independent businesses and provide opportunities to global investors.

The company management earlier highlighted that this would also help the individual units to pursue strategic agendas more freely and better align with customers, investment cycles and end markets.