India: Vedanta Aluminium reports record Q2FY’27 output; capacity ramp-up supports growth outlook

• BALCO’s operational capacity reaches 50% of planned 435,000 t/year target
• Company secures Consent to Operate for Sijimali bauxite block

Vedanta Aluminium Metal Limited (VAML) reported record quarterly and half-yearly production across aluminium, alumina and value-added products (VAP) for the quarter ended September 30, 2026. The performance was supported by the ramp-up of new smelting capacity, higher alumina output and strong downstream demand.

According to the company’s production release, aluminium production rose 5% y-o-y to 649,000 t in Q2FY’27 from 617,000 t in Q2FY’26 and increased 3% q-o-q from 632,000 t in Q1FY’27. H1FY’27 aluminium production reached a record 1.281 million tonnes (mnt), up 5% y-o-y.

BALCO expansion drives aluminium volumes

BALCO’s aluminium production increased 19% y-o-y to 178,000 t in Q2 FY’27 from 150,000 t, while H1 production rose 18% y-o-y to 347,000 t. The growth was supported by the commissioning of the second zone of its 525 kA smelter potline, taking operational capacity to 50% of the planned 435,000 t/year expansion.

The new smelter contributed 27,000 t of trial production in Q2FY’27 and 51,000 t during H1FY’27. Jharsuguda production remained broadly stable at 470,000 t in Q2, up 1% y-o-y.

Alumina production hits record

Alumina production surged 37% y-o-y to a record 895,000 t in Q2FY’27 from 653,000 t, while rising 8% q-o-q from 826,000 t. H1FY’27 production reached 1.721 mnt, up 39% y-o-y.

The company attributed the increase to the ramp-up and stabilisation of its expansion circuit. The higher alumina output should also strengthen the company’s integrated raw-material position as aluminium smelting capacity expands.

VAP production rises on downstream demand

Value-added product (VAP) production increased 31% y-o-y to 432,000 t in Q2FY’27 from 329,000 t and rose 11% q-o-q from 389,000 t. H1FY’27 VAP production stood at 821,000 t, up 22% y-o-y.

VAML said it has enhanced VAP capabilities over the past two quarters to cater to accelerating demand from the Asian automotive segment and growing domestic downstream demand. The company has also been expanding its billet and foundry-alloy portfolio. Its Jharsuguda billet capacity was raised to 830,000 t/year earlier this year.

Sijimali bauxite block receives CTO

The company also obtained Consent to Operate (CTO) for the Sijimali Bauxite Block. The development is important for Vedanta’s backward-integration strategy and efforts to strengthen domestic bauxite availability.

Vedanta’s broader aluminium strategy includes ramping up Lanjigarh refinery capacity, scaling BALCO’s smelting capacity and increasing VAP production.

Outlook

The near-term outlook for Vedanta Aluminium remains centred on the ramp-up of BALCO’s new capacity, higher alumina availability and increasing VAP production. India’s aluminium demand is expected to remain supported by infrastructure, power transmission, automotive, renewable energy and downstream applications.

However, aluminium prices will remain sensitive to global supply additions, LME prices, energy costs and geopolitical developments. For Vedanta, greater backward integration, higher captive raw-material availability and a larger VAP mix could help improve cost competitiveness and reduce exposure to external market volatility.