Vedanta Reports Record Q1FY26 EBITDA of ₹10,746 Cr; Adjusted PAT Jumps 13% YoY

Mumbai, July 31, 2025 — Vedanta Limited (NSE: VEDL, BSE: 500295) has reported its highest-ever EBITDA for the first quarter of FY26, reaching ₹10,746 crore in Q1FY26, reflecting a 5% year-on-year (YoY) increase. Robust operational efficiencies and tight cost controls across key verticals drove this performance.

Stock Performance

As of July 31, 2025, Vedanta Ltd (NSE: VEDL) closed at ₹424.65, down 2.29% for the day. The stock opened at ₹429.00, hit a high of ₹434.40 and a low of ₹424.00. With a market capitalisation of ₹1.58 lakh crore, the company has a P/E ratio of 10.48 and an impressive dividend yield of 9.30%. Its 52-week range spans from ₹363.00 to ₹526.95, and the quarterly dividend stands at ₹9.87 per share.

Detailed Financial Performance – Consolidated (₹ in crore)

In Q1FY26, Vedanta reported revenue from operations at ₹37,434 crore, reflecting a 6% year-on-year (YoY) growth compared to ₹35,239 crore in Q1FY25. However, on a quarter-on-quarter (QoQ) basis, revenue dipped by 6% from ₹39,789 crore in Q4FY25.

EBITDA for the quarter rose to ₹10,746 crore, marking a 5% YoY increase from ₹10,275 crore, though it declined 8% QoQ from ₹11,618 crore. The EBITDA margin (excluding copper operations) stood firm at 35%, improving by 81 basis points YoY and remaining flat QoQ.

Adjusted profit after tax (PAT) grew 13% YoY to ₹5,000 crore, up from ₹4,433 crore in the same period last year. Sequentially, however, it dipped 3% from ₹5,144 crore in Q4FY25. Reported net profit came in lower at ₹4,457 crore, down 13% YoY and 10% QoQ.

On the balance sheet front, Vedanta’s net debt rose to ₹58,220 crore, compared to ₹53,251 crore in Q4FY25, but it was still lower than ₹61,324 crore recorded in Q1FY25. The company’s cash and cash equivalents improved significantly, reaching ₹22,137 crore — a 33% YoY and 7% QoQ increase. As a result, the net debt-to-EBITDA ratio improved to 1.3x, down from 1.5x a year ago, though slightly higher than the 1.2x reported in the previous quarter.

What Does it Mean for the Investors?

• Revenue, EBITDA, and Adjusted PAT have all grown year-on-year, signalling resilient operational performance.
• However, the quarter-on-quarter (QoQ) decline across all major financial metrics suggests near-term pressure, possibly due to commodity price volatility or seasonal factors.
• The YoY improvement of the EBTIDA margin also indicates operational efficiency, along with effective cost optimisation.
• Net debt increased sequentially, but YoY improvement and a manageable net debt-to-EBITDA ratio show that the company’s leverage remains under control, especially with stronger cash reserves.

Segment Performance

Aluminium operations saw record alumina output of 587 kilotonnes (kt), growing 9% YoY and 36% QoQ. Aluminium production touched 605 kt, up 1% YoY. Importantly, the hot metal cost (excluding alumina) dropped to $888 per tonne—its lowest in 16 quarters. Despite flat EBITDA of ₹4,462 crore, segment margins improved sequentially due to cost-saving measures.

Zinc India recorded its highest-ever mined metal output for the first quarter at 265 kt, while the cost of production fell 9% YoY to $1,010 per tonne. Zinc alloy output reached record highs, with the share of value-added products rising to 24%.

Zinc International saw mined metal volumes surge 50% YoY to 57 kt. The cost of production also fell sharply to $1,269 per tonne, a 21% reduction YoY.

Oil & Gas production declined 17% YoY to 93.2 kboepd, yet the segment posted a 17% YoY increase in EBITDA to ₹1,268 crore, supported by lower operating expenses and improved gas realization.

Iron & Steel output was strong, with saleable iron ore production rising 42% YoY to 1.8 million tonnes. Pig iron production hit 213 kt, the highest-ever for a first quarter, and ferrochrome output doubled sequentially to 28 kt.

Power operations were bolstered by a 33% QoQ rise in sales. The company commissioned two major power units in July 2025: Meenakshi (650 MW) and Athena Unit 1 (600 MW), further expanding its capacity.

Strategic Developments

Vedanta declared an interim dividend of ₹7 per share. It also raised ₹3,028 crore by divesting a 1.6% stake in Hindustan Zinc Limited. The company commenced commercial operations for 950 MW of new thermal power capacity year-to-date (YTD), contributing to improved energy vertical performance. Additionally, the Lanjigarh alumina refinery ramp-up is expected to support Vedanta’s 3 million metric tonne (MMT) volume target for FY26.

Management Commentary

Anil Agarwal, Chairman, stated, “Our Q1 performance has set a strong foundation for the year. With record EBITDA, lowest hot metal cost, and a strong pipeline of expansion projects, we are on track to deliver a robust FY26 performance.”

Ajay Goel, CFO, added, “With Net Debt/EBITDA at 1.3x and cost of debt reduced to 9.2%, our financials remain resilient. Strategic divestments and cost control continue to support deleveraging.”

ESG and CSR Initiatives

Vedanta continued its commitment to sustainability and social responsibility in Q1FY26. Vedanta Limited, along with its subsidiaries Hindustan Zinc and Vedanta Aluminium, was recognised in the S&P Global Sustainability Yearbook 2025, underscoring its focus on ESG excellence. During the quarter, the company spent ₹94 crore on corporate social responsibility (CSR) initiatives, positively impacting the lives of 2.04 million people across its operational regions. In line with its long-term environmental goals, Vedanta advanced its afforestation program by planting 3.5 million trees — achieving 50% of its 2030 target of 7 million trees.

Future Outlook

Looking ahead, Vedanta reaffirmed its full-year guidance and outlined key commissioning milestones for the upcoming quarters. In Q2FY26, the company plans to ramp up operations at the Lanjigarh Train II alumina facility and commission the 435 kt Balco smelter. Additionally, 1,300 MW of new thermal power capacity is set to go online. In the second half of FY26, Vedanta is also set to commence mining operations at its Sijimali bauxite and Kuraloi coal blocks, strengthening its raw material security and production capabilities.

REF:https://nsearchives.nseindia.com/corporate/VEDL_31072025144253_VEDLSEIntimationOutcomeofBM31July2025PressReleaseandIRPPTsigned.pdf

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