THEBUSINESSBYTES BUREAU

MUMBAI, OCTOBER 29, 2026

Vedanta Oil and Gas, India's largest private-sector oil and gas exploration and production company, on Thursday reported a profit after tax of ₹746 crore for the September quarter, reversing a loss of ₹92 crore in the year-ago period, aided by higher price realisations and cost optimisation.

Total income rose 3 per cent to ₹2,628 crore in the second quarter of the 2026-27 financial year, compared with ₹2,544 crore in the corresponding quarter of the previous fiscal, the company said in a statement.

The improved financial performance came despite a decline in production, with the company's total oil and gas output falling 19 per cent to 6.6 million barrels of oil equivalent (mboe) in the quarter from 8.2 mboe a year earlier, according to its investor presentation.

The company attributed its performance to higher price realisations and cost optimisation measures, alongside focused production optimisation initiatives aimed at arresting output declines from mature assets.

"Focused production optimisation initiatives, including well interventions and continuous artificial lift optimisation programmes maximised recovery from mature assets in Rajasthan and Ravva (oil and gas field)," it said.

"Our Q2FY27 performance reflects disciplined execution and the strength of our portfolio. Focused production optimisation initiatives are driving decline arrest across our mature assets, while new discoveries reinforce the untapped potential of our acreage," Jim Johnny Gast, Interim Chief Executive Officer and Whole-time Director, said.

He said the company was pursuing a pipeline of exploration and development projects across Rajasthan, the Northeast and offshore blocks to unlock future growth, enhance production and deliver sustainable, long-term value.

Vedanta Oil and Gas said it was advancing its exploration and development programme, with upcoming deepwater exploration efforts on the East Coast, full-phase Alkaline-Surfactant-Polymer (ASP) injection in Rajasthan North and exploration campaigns in the Northeast forming key elements of its growth strategy.

The company's exploration campaign yielded three discoveries in the Rajasthan block during the first half of the current financial year, covering deep-gas and shallow-oil prospects in previously unexplored reservoir intervals across the Kaameshwari, Saraswati and Raageshwari fields.

"The hydrocarbon potential and commercial viability of these discoveries remain under evaluation," the company said.

The discoveries could add to the company's resource base, although their eventual contribution will depend on further evaluation and the commercial viability of the identified prospects.