Vedanta Ltd is a diversified natural resource group engaged in exploring, extracting and processing minerals and oil & gas. The group engages in the exploration, production and sale of zinc, lead, silver, copper, aluminium, iron ore and oil & gas. It has presence across India, South Africa, Namibia, Ireland, Liberia & UAE. Its other businesses includes commercial power generation, steel manufacturing & port operations in India and manufacturing of glass substrate in South Korea and Taiwan. Presenting below are its Q1 FY26 earnings results.
Q1 FY26 Earnings Results
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Consolidated Revenue: ₹37,824 crore, up 6% year-over-year (YoY) from ₹35,239 crore in Q1 FY25.
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Net Profit (PAT): ₹4,457 crore, down 13% YoY from ₹5,095 crore last year.
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Adjusted Net Profit (excluding exceptional items): Up 13% YoY to ₹5,000 crore.
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EBITDA: Record ₹10,746 crore, rising 5–6% YoY, marking the highest Q1 EBITDA ever for Vedanta.
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EBITDA Margin: 35%, expanded by 81 basis points YoY—highest in the last 13 quarters.
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EPS: ₹8.15 (basic), ₹8.09 (diluted).
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Total Expenses: ₹32,756 crore, up 6.4% YoY.
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Gross Debt: ₹80,357 crore; Net Debt/Ebitda Ratio: 1.3x; Cash & Equivalents: ₹22,137 crore (+33% YoY).
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Interim Dividend: ₹7 per equity share declared (record date: June 24, 2025).
Key Operational and Strategic Highlights for Q1 FY26 Earnings
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Operational Performance:
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Highest Q1 alumina production at 587 KT (+9% YoY); ramp-up at Lanjigarh refinery a key driver.
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Zinc India: Record Q1 mined metal output at 265 KT, lowest production cost at $1,010/tonne.
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International zinc: 50% YoY jump in mined metal production at $1,269/tonne, down 21% YoY in cost.
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Power segment: 33% QoQ surge in sales; 950 MW merchant power capacity commissioned.
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Ferrochrome: Volume up 150% QoQ.
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Aluminum: Lowest hot metal cost (ex-alumina) at $888/tonne in last 16 quarters, and overall production cost down 12% QoQ.
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Chairman Anil Agarwal’s Commentary:
“Our Q1 performance has set a strong foundation for the year ahead. Amidst global market volatility, we delivered the highest-ever first quarter EBITDA. Operationally, we achieved lowest hot metal cost, record zinc production and remarkable volume growth.”
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Financial Management:
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Finance cost dropped 9% YoY to ₹2,026 crore, reflecting better refinancing and lower borrowings.
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Liquidity improved by 29% YoY with cash and equivalents at $2.6 billion.
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Net debt/EBITDA ratio improved to 1.3x.
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Growth Drivers and Guidance:
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Q2 commissioning of expanded Lanjigarh refinery (Train II), BALCO smelter (435KT) and 1,300 MW thermal power in the pipeline.
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Major coal and bauxite mines to start operations in H2, boosting future performance.
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Q4 FY25 Earnings Results
- Vedanta Ltd reported Revenues for Q4FY25 of ₹40,455.00 Crores up from ₹35,509.00 Crore year on year, a rise of 13.93%.
- Total Expenses for Q4FY25 of ₹34,560.00 Crores up from ₹31,899.00 Crores year on year, a rise of 8.34%.
- Consolidated Net Profit of ₹4,961.00 Crores up 118.07% from ₹2,275.00 Crores in the same quarter of the previous year.
- The Earnings per Share is ₹8.91, up 142.12% from ₹3.68 in the same quarter of the previous year.
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Q1 witnessed sequential declines in profit and revenue due to softer commodity prices and lower volumes.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.