India: Vedanta’s iron ore production falls 13% y-o-y in Q2FY’27 amid sharp decline from Karnataka

• Stronger output from Goa, Odisha partly offsets decline in Karnataka
• Company says Q2 output aligned with revised estimates under updated mine plan

Vedanta Iron and Steel Ltd’s (VISL) saleable iron ore production declined 13% y-o-y to 1.52 million tonnes (mnt) in Q2FY’27 from 1.75 mnt in Q2FY’26. Production was also down 43% q-o-q from 2.64 mnt in Q1FY’27, mainly due to lower output from Karnataka and the company’s revised mine plan.

Despite the quarterly decline, H1FY’27 production stood at 4.16 mnt, down only 3% y-o-y from 4.29 mnt, with stronger output from Goa and Odisha partly offsetting the decline in Karnataka.

Karnataka output declines

Karnataka saleable ore production fell 49% y-o-y to 0.51 mnt in Q2FY’27 from 0.99 mnt a year earlier. Output also declined 41% q-o-q from 0.85 mnt in Q1FY’27. H1FY’27 production stood at 1.36 mnt, down 47% y-o-y from 2.56 mnt in H1FY’26.

The company said Q2 production was aligned with revised estimates under the updated mine plan. Karnataka BHQ material production stood at 0.25 mnt during the quarter, down 33% y-o-y, taking H1FY’27 BHQ production to 0.75 mnt, down 41% y-o-y from 1.28 mnt. The BHQ material remains included in Karnataka’s total production.

Odisha output rises

Odisha production increased 34% y-o-y to 0.91 mnt in Q2FY’27 from 0.68 mnt. However, output declined 21% q-o-q from 1.16 mnt in Q1FY’27.

The company attributed the annual growth to higher operational efficiency, with H1FY’27 Odisha production reaching 2.08 mnt, up 46% y-o-y against 1.42 mnt in the same period last year.

Goa production remains higher y-o-y

Goa iron ore production rose 22% y-o-y to 0.10 mnt in Q2FY’27 from 0.08 mnt. Production was down 85% q-o-q from 0.63 mnt in Q1FY’27.

The company attributed the y-o-y increase to the ramp-up of mining operations and enhanced processing capacity. H1FY’27 Goa production stood at 0.72 mnt, more than double the 0.31 mnt recorded in H1FY’26.

Steel output remains higher y-o-y

VISL’s saleable steel production increased 4% y-o-y to 532,000 tonnes (t) in Q2FY’27 from 512,000 t a year earlier, but declined 9% q-o-q from 582,000 t in Q1FY’27. H1FY’27 saleable production stood at 1.11 mnt, up 4% y-o-y from 1.07 mnt.

Hot metal production rose 3% y-o-y to 552,000 t in Q2FY’27 from 533,000 t, but declined 8% q-o-q from 601,000 t in Q1. H1 hot metal production increased 3% y-o-y to 1.15 mnt from 1.12 mnt. The company attributed the sequential decline in Q2 saleable steel production to scheduled furnace maintenance.