- EBITDA jumps 12% y-o-y to INR 11,612 crore
- BALCO’s smelter begins first metal production
Vedanta Ltd., the Anil Agarwal-led mining and metals major, reported a strong performance in Q2FY’26, with its highest-ever second-quarter revenue and EBITDA, supported by robust growth in the aluminium segment and margin expansion.
The company’s revenue rose 6% y-o-y to INR 39,218 crore, driven by higher London Metal Exchange (LME) prices, favourable premiums, and forex gains. EBITDA grew 12% y-o-y to a record INR 11,612 crore, while EBITDA margins improved by 69 basis points y-o-y to 34%, excluding custom smelting and one-off gains. Profit before exceptional items jumped 13% y-o-y to INR 5,026 crore, reflecting operational efficiency and disciplined cost control.
Vedanta’s net profit stood at INR 3,479 crore, down 38% y-o-y due to exceptional losses of INR 1,547 crore, compared to a gain of INR 1,136 crore last year. The company declared an interim dividend of INR 16 per share during the quarter. Its net debt-to-EBITDA ratio improved to 1.37x from 1.49x last year, with a reaffirmed AA credit rating by CRISIL and ICRA, highlighting strong financial resilience.
Aluminium business leads growth
The aluminium division reported record alumina production of 653,000 t, up 31% y-o-y, and record cast metal aluminium production of 617,000 t, up 1% y-o-y. BALCO achieved first metal output from India’s largest 525 kA smelter, while Train II of the 3 mnt/year Lanjigarh expansion project delivered its first alumina output. The business remained a key earnings driver, aided by capacity ramp-ups and cost efficiency.
Highlights from other segments
The Zinc India business delivered its highest-ever second-quarter mined metal output at 258,000 t, while Zinc International production surged 38% y-o-y to 60,000 t. The oil and gas segment reported production of 89,300 barrels of oil equivalent per day (boepd), whereas iron ore and steel businesses saw record pig iron production of 238,000 t, up 26% y-o-y. Merchant thermal power capacity expanded by 1.3 GW with the commissioning of Athena (600 MW) and Meenakshi (1,000 MW) plants.
ESG, sustainability milestones
On the ESG front, Hindustan Zinc became the first Indian company to join the International Council on Mining and Metals, marking a milestone in sustainable mining leadership. Vedanta also planted over two lakh saplings across operations and impacted 27.5 million women and children through social programmes.
Outlook, management commentary
Commenting on the results, Arun Misra, Executive Director, said the company’s focus on volume growth and cost reduction across businesses has strengthened resilience amid price volatility. Ajay Goel, CFO, added that the record performance, improved leverage, and stable credit ratings underline Vedanta’s financial strength and growth potential.
Leave a Reply