Vedanta Reports 59% Drop in Q2 Profit to Rs 1,798 Crore Amidst Remarkable Loss
MUMBAI – Vedanta Limited reported a consolidated profit after tax of Rs 1,798 crore for teh second quarter of fiscal year 2026, a 59% decrease year-on-year from Rs 4,393 crore in the same period last year. The decline was primarily attributed to an exceptional loss of Rs 2,067 crore, the company stated in a regulatory filing. Despite the profit dip, Vedanta achieved a record second-quarter EBITDA of Rs 11,612 crore, a 12% year-on-year increase, bolstered by a 69 basis point margin expansion to 34%.
The company’s net debt-to-EBITDA ratio stood at 1.37x, and its credit rating was reaffirmed at AA.Vedanta Resources Limited successfully refinanced $550 million through a bond issue, lowering its overall interest cost from 11.6% to 10% and improving average debt maturity to 4.5 years.
Operational Highlights:
* Aluminium: Record quarterly alumina production of 653 kt (up 31% YoY, 11% QoQ) and cast metal aluminium production 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 mined metal production at 258 kt (up 1% YoY) and the lowest Q2 Hindustan Zinc Limited (HZL) cost of production (COP) in the last five years at $994/t (down 7% YoY, 2% QoQ).
* Zinc International: Mined metal production increased 38% YoY and 6% QoQ to 60 kt, with Gamsberg’s production surging 54% YoY and 7% QoQ to 49 kt.
* Oil & Gas: Q2FY26 production stood at 89.3 kboepd.
* Iron Ore, Steel, and Copper: Iron ore production at IOG increased 48% YoY to 0.1 mnt. Record quarterly pig iron production reached 238 kt (up 26% YoY, 12% QoQ), and ore production at Facor rose 23% YoY to 47 kt.
* Power: Merchant thermal power capacity was enhanced to 4.2 GW with the commissioning of Athena (600 MW) and Meenakshi (1,000 MW) plants.
Executive Director Arun Misra stated the company’s H1FY26 performance demonstrated Vedanta’s resilience, delivering 8% YoY EBITDA growth despite uncertainties and lower commodity prices compared to FY25 averages.
“We achieved record production of aluminium, alumina, and zinc MIC in our international operations, alongside pig iron and power generation,” Misra said. “Supported by increased production capacity and a recovery in commodity prices, Vedanta is well-positioned to deliver its best-ever performance in FY26, with full-year EBITDA expected to surpass the historic peak of around USD 6 billion achieved in FY22.”
