Vedanta Reports 59% Dropโฃ in Q2 Profit to Rs 1,798 Crore Amidst Remarkable Loss
MUMBAIโฃ – Vedantaโ Limited reported a consolidated profit after tax of โRs 1,798 crore for โคteh second quarter of fiscal year 2026, a โ59%โ decrease year-on-yearโ from Rs 4,393 crore in the same period last year. The decline was primarily attributed to an โexceptional loss of Rs 2,067 crore, โฃthe company stated in a regulatory filing. Despite the profit dip, Vedantaโข achieved aโข record second-quarter โEBITDA of Rs โ11,612 crore, a โ12% year-on-year increase, bolstered by a 69 basis point margin expansion โฃto 34%.
The company’s net debt-to-EBITDA ratio stood at 1.37x,โฃ and its credit rating was reaffirmedโฃ at AA.Vedanta Resources Limited successfully refinanced $550 million through a โคbond issue,โฃ lowering its overall interest costโ from 11.6% to 10% and improvingโค average debt maturity to 4.5 โyears.
Operational Highlights:
* Aluminium: Record quarterly alumina production of 653 kt (up โ31% YoY,โค 11% QoQ)โฃ and cast metal aluminium productionโ of 617 kt (up 1% YoY, 2% QoQ). BALCO produced first metal from India’s largest 525 kA smelter.
* Zinc India: Highest-ever second-quarter minedโ metal production at 258 kt (up 1% YoY) and โขthe โคlowest Q2 โHindustan Zincโ Limited (HZL) cost of production (COP) in the last โขfive yearsโค at $994/t (down 7% YoY, 2% QoQ).
* โ Zinc International: Mined metal production increased 38% YoY and 6% QoQ to 60 kt,โ withโ Gamsberg’s production surgingโ 54% YoY and 7% QoQ to 49 kt.
* Oil & Gas: Q2FY26 production stood at 89.3โ kboepd.
* โฃ Iron Ore, Steel, and Copper: Iron ore production at IOG increased 48% YoY to 0.1 mnt. Record quarterly pig iron production reachedโค 238 kt (up 26% YoY, 12% QoQ),โค and ore production โฃat Facor rose 23%โ YoY to 47 kt.
* Power: Merchant โขthermal power capacity was enhanced toโ 4.2 GW withโ the commissioning โof Athena (600 MW)โค and Meenakshi (1,000 MW) plants.
Executive Director Arun Misra stated the company’s H1FY26โข performance โdemonstrated Vedanta’s โresilience, delivering 8% YoY EBITDA growth despite uncertainties and lower โขcommodity prices compared to FY25 averages.
“We achieved recordโ production โof aluminium, alumina, and zinc MIC in our international operations, alongside pig iron โand power generation,” Misra said. “Supportedโค by increased production capacity and a recoveryโ in commodity prices, Vedanta is well-positioned to deliver its best-ever performanceโข in FY26, with full-year EBITDA expectedโ to โขsurpass the historic peak of around USD 6 billion achieved in FY22.”