Vedanta Q2 FY26 Profit Rises 13% YoY to ₹5,026 Crore; Declares ₹16 Dividend

Mumbai, October 31, 2025 – Vedanta Limited (NSE: VEDL, BSE: 500295) recorded a 13% increase in profit before exceptional items on a year-over-year (YoY) basis at ₹5,026 crore in the second quarter (Q2 FY26), supported by record aluminium and zinc production, higher premiums, and favorable forex gains. The company announced an interim dividend of ₹16 per share.

Key Financial Highlights (Consolidated)

Vedanta Ltd achieved its highest-ever second-quarter revenues and EBITDA, driven by solid performance in aluminium and power businesses. The revenue from operations grew by 6% YoY to ₹39,218 crore as compared to ₹37,171 crore a year ago during the same quarter last year. EBITDA grew by 12% YoY at ₹11,612 crore, while margins remained stable at 34%.

Profit before exceptional items grew by 13% on a YoY basis, totaling at ₹5,026 crore; however, reported profit fell sharply by 38% YoY to ₹3,479 crore due to one-off adjustments. For the six months ending FY26, revenue amounted to ₹76,652 crore, representing a 6% increase from ₹72,410 crore for 1H FY25.

Net debt stood at ₹62,063 crore, with the Net Debt-to-EBITDA ratio improving to 1.37x from 1.49x a year ago, reflecting stronger operational cash flows and continued balance sheet discipline.

Segment Performance

Aluminium

The aluminium division achieved record quarterly production of 617 kt, marking a 1% year-on-year rise. Alumina output also hit an all-time high of 653 kt, up 31% YoY. The segment’s EBITDA surged 33% YoY to ₹5,532 crore, driven by higher volumes and cost efficiencies. Notably, BALCO commenced its first metal production from India’s largest 525 kA smelter during the quarter.

Zinc India

Vedanta’s zinc operations in India reported their highest-ever Q2 mined metal production at 258 kt, up 1% YoY. The cost of production fell 7% to $994 per tonne, marking a five-year low. The segment’s EBITDA rose 8% YoY to ₹4,434 crore, supported by lower input costs. During the quarter, Hindustan Zinc also became the first Indian company to join the International Council on Mining and Metals (ICMM), underscoring its commitment to sustainable mining.

Zinc International

At the global level, Vedanta’s Zinc International business reported a 38% YoY increase in mined metal output to 60 kt, led by robust performance at the Gamsberg mine. Segment revenue grew 22% YoY to ₹1,237 crore, reflecting improved operational efficiency and higher production levels.

Oil & Gas

The Oil & Gas segment faced a 15% YoY production decline to 89.3 kboepd, largely due to natural field declines. EBITDA came in at ₹1,029 crore, compared to ₹1,170 crore a year earlier. Vedanta continued its development activities, with the ASP project at the Mangala cluster progressing and offshore drilling at the Dwarka block now underway.

Power

The power business recorded its highest-ever quarterly generation at 3,889 MU, an increase of 7.9% YoY. Merchant capacity expanded to 4.2 GW with an additional 1.3 GW added during the quarter. New units at Athena (600 MW) and Meenakshi (1,000 MW) began operations, strengthening Vedanta’s power portfolio and improving its energy integration capabilities.

Iron & Steel

In the iron and steel segment, pig iron production reached a record 238 kt, up 26% YoY, supported by enhanced plant utilization. Revenue rose 5% YoY to ₹1,449 crore, led by improved market realization and operational efficiencies.

Management Commentary

Arun Misra, Executive Director, Vedanta Limited: “Our H1 FY26 performance reflects Vedanta’s resilience. Despite volatile commodity prices, we achieved 8% EBITDA growth and record production in aluminium, alumina, zinc, and pig iron. With new power capacities and smelter expansions, Vedanta is well positioned to surpass its historic FY22 EBITDA of USD 6 billion this year.”

Ajay Goel, CFO, Vedanta Limited, “This quarter, we delivered record Q2 revenue and EBITDA. Our leverage continues to improve with a Net Debt/EBITDA ratio of 1.37x, and both CRISIL and ICRA reaffirmed our AA credit rating, underscoring the market’s confidence in Vedanta’s financial strength.”

ESG and CSR Highlights

• Planted over two lakh saplings across operations.
• Benefited 27.5 million women and children through social programs.
• Signed an ₹85 crore MoU for the restoration of heritage sites in Rajasthan.
• Hindustan Zinc joined the International Council on Mining and Metals, a first for any Indian company.

Share Price Update

The share price of Vedanta Limited closed at ₹494.30, which is a 2.50% dip on Friday. Shares of Vedanta Ltd opened at ₹506.95 and touched an intraday high of ₹507.40, while the day’s low stood at ₹491.20. The company’s market capitalization stood at ₹1.83 lakh crore.

Vedanta is currently trading at a P/E ratio of 13.32, offering a strong dividend yield of 10.42%, which remains one of the highest among large-cap metal and mining companies. The stock’s 52-week range spans from a high of ₹526.95 to a low of ₹363.00.

REF: https://nsearchives.nseindia.com/corporate/VEDL_31102025145030_2VEDLSEIntimationOutcomeofBMPRandIR311025signed.pdf

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