Vedanta Limited Reports Highest-Ever Q1 FY27 Net Profit of ₹5,294 Crore, Up 152% YoY; EBITDA Surges 98% to ₹8,469 Crore

Natural resources conglomerate Vedanta Limited (VEDL) declared its unaudited consolidated financial results for the first quarter ended June 30, 2026 (Q1 FY27). Driven by record operational efficiency, favorable metal realisations, and raw material cost optimization, the company posted its highest-ever quarterly net profit and best-ever operating EBITDA.

Landmark Consolidated Financial Highlights

For Q1 FY27, Vedanta Limited recorded consolidated revenue from operations of ₹23,456 crore, representing a 51% year-on-year (YoY) increase compared to ₹15,537 crore in Q1 FY26. Sequentially, revenue experienced a nominal decline of 1% from ₹23,731 crore in Q4 FY26. Operating revenue was bolstered by higher London Metal Exchange (LME) prices, improved market premiums, and positive foreign exchange movements.

Operating EBITDA for the quarter reached a record ₹8,469 crore, expanding 98% YoY from ₹4,267 crore in Q1 FY26 and 9% QoQ over ₹7,785 crore in Q4 FY26. Excluding the copper business, consolidated EBITDA margin expanded by 985 basis points YoY and 225 basis points QoQ to reach 57% (up from 47% in Q1 FY26 and 54% in Q4 FY26).

Profit Before Tax (PBT) for Q1 FY27 came in at ₹7,189 crore, up 145% YoY from ₹2,933 crore and 21% QoQ from ₹5,951 crore in Q4 FY26.

After accounting for tax charges of ₹1,895 crore (reflecting a normalized effective tax rate of 26%), consolidated Profit After Tax (PAT) surged 152% YoY and 24% QoQ to ₹5,294 crore, up from ₹2,102 crore in Q1 FY26 and ₹4,267 crore in Q4 FY26.

Detailed Consolidated Financial Parameters

Other Operating Income: Stood at ₹749 crore, compared to ₹217 crore in Q1 FY26 and ₹878 crore in Q4 FY26.

Profit Before Depreciation & Tax: Reached ₹8,381 crore, surging 107% YoY from ₹4,049 crore and 15% QoQ from ₹7,283 crore.

Depreciation & Amortisation: Came in at ₹1,192 crore, up 7% YoY from ₹1,116 crore (due to increased ore production at Zinc International and Facor) and down 11% QoQ from ₹1,332 crore (primarily due to lower ore production at Hindustan Zinc Ltd).

Finance Costs: Stood at ₹662 crore, up 9% YoY from ₹609 crore and down 5% QoQ from ₹694 crore, with the overall borrowing cost reduced to less than 8.5% per annum.

Investment Income: Rose 50% YoY to ₹449 crore, compared to ₹300 crore in Q1 FY26 and ₹321 crore in Q4 FY26.

Exchange Gains / (Losses) & Non-Operational Items: Stood at a gain of ₹125 crore, compared to ₹91 crore in Q1 FY26 and a loss of ₹129 crore in Q4 FY26.

Growth Capex: Invested ₹1,148 crore during the quarter.

Strategic Deleveraging, Liquidity, and Credit Rating Upgrades

Vedanta Limited maintained capital discipline during Q1 FY27, strengthening its balance sheet metrics:

Net Debt Reduction: Net debt reduced by ₹2,223 crore during Q1 FY27 to stand at ₹8,299 crore as on June 30, 2026 (Gross Debt stood at ₹28,291 crore).

Net Debt/EBITDA Ratio: Improved to 0.30x, maintaining a best-in-class leverage position.

Liquidity Position: Cash and cash equivalents remained high at ₹19,992 crore, invested in high-quality debt instruments, mutual funds, bonds, and bank fixed deposits.

Credit Rating Upgrades: Both ICRA (in May 2026) and CRISIL (in July 2026) upgraded Vedanta Limited's credit rating to AA+ (Stable).

Return Metrics: Return on Capital Employed (ROCE) expanded to 29%.

Demerger Value Creation: Combined market capitalization of all resulting entities under the ongoing demerger scheme grew by over ₹71,000 crore during the quarter.

Parent Company (Vedanta Resources Limited) Updates

At the group level, parent entity Vedanta Resources Limited (VRL) deleveraged by $1.1 billion in Q1. VRL successfully completed long-term liability management initiatives:

Issued $1.75 billion of international bonds at an average coupon rate of 7.4% and an average maturity of 8.5 years.

Tied up a $2.25 billion syndicated term loan at ~6.4% interest rate with an average maturity of 3 years.

Received credit rating upgrades across major global agencies: S&P (BB), Fitch (BB with Stable outlook), and Moody's (Ba3 with Positive outlook).

Business-Wise Operational Highlights

Zinc India (Hindustan Zinc): Mined metal production reached a Q1 record of 268 kt (up 1% YoY). Refined metal output grew 4% YoY to 260 kt, while silver production remained flat at 149 tonnes. Cost of Production (COP) for Zinc post-underground transition dropped 16% YoY to $851/tonne, marking its lowest level.

Zinc International: Mined metal output stood at 48 kt (down 14% YoY), impacted by Deep's mine at Black Mountain nearing its end-of-life cycle. Gamsberg mine output remained flat YoY at 45 kt.

Copper: Silvassa plant sales achieved an 8-year Q1 high of 53 kt (up 3% YoY). Fujairah Copper Rod sales declined 51% YoY due to supply chain disruptions linked to the closure of the Strait of Hormuz.

Facor (Ferro Alloys): Recorded highest-ever ore production of 153 kt (up 41% YoY), while Ferrochrome production increased 4% YoY to 29 kt.

Ports (Vizag General Cargo Berth): Achieved record discharge volume of 2,358 kt (up 40% YoY) and dispatch volume of 1,652 kt (up 11% YoY).

Commenting on Q1FY27 results, Mr. Arun Misra, Executive Director, Vedanta Ltd, said, "We have delivered a strong start to FY27, with robust performance across all business segments of demerged Vedanta. Zinc India registered its highest-ever first-quarter mined metal production. FACOR delivered its highest-ever quarterly ore production and EBITDA. Copper India recorded its highest first-quarter sales in eight years. Zinc International continued to build momentum at Gamsberg, with Phase 1 output rising sequentially and Phase 2 on track to commence this quarter. This consistent operational execution across our portfolio reflects the strength of our underlying asset base and our continued focus on volume growth, cost efficiency and value creation."

Mr. Ajay Goel, Group CFO, Vedanta, said, "Vedanta's demerger is unlocking significant shareholder value, with combined market cap of resulting companies growing by over ₹71,000 crore in the 1st quarter.

Vedanta Limited has delivered strong Q1 results with continuing operations PAT growing to ₹5,294 crore, up 152% YoY & EBITDA to ₹8,469 crore, up 98% YoY. With net debt reduced by ₹2,223 crore in the quarter, VEDL has got AA+/Stable credit rating upgrade from both ICRA & CRISIL."

Shares of Vedanta Limited was last trading in BSE at Rs. 267.60 as compared to the previous close of Rs. 264.50. The total number of shares traded during the day was 744481 in over 9907 trades.

The stock hit an intraday high of Rs. 269.55 and intraday low of 263.40. The net turnover during the day was Rs. 197995911.00.

Source : Equity Bulls

Keywords

Vedanta INE205A01025 Q1FY27 Q1FY2027 ResultUpdate