PRIYABRAT BISWAL

BHUBANESWAR, OCTOBER 28, 2026

Mining major Vedanta Ltd on Wednesday reported a record consolidated net profit of Rs 6,202 crore for the September quarter of FY27, registering a 151 per cent year-on-year growth, driven by strong operational performance across its diversified businesses and robust cash generation.

The company also posted its highest-ever quarterly EBITDA (earnings before interest, taxes, depreciation and amortisation) of Rs 9,938 crore, more than doubling from a year earlier, while revenue rose 57 per cent to a record Rs 25,812 crore during the quarter, Vedanta said in a statement.

For the first half of the current fiscal, the company's profit surged 151 per cent year-on-year to a record Rs 11,496 crore, while revenue grew 54 per cent to Rs 49,268 crore. EBITDA for the six-month period more than doubled to Rs 18,407 crore, up 103 per cent from the year-ago period.

The quarterly EBITDA margin expanded to 60 per cent, improving by 1,055 basis points year-on-year and 293 basis points sequentially, reflecting improved operating performance and cost efficiencies across key businesses.

Vedanta strengthened its balance sheet during the quarter, reducing net debt by Rs 4,624 crore to Rs 3,675 crore at the end of September, from Rs 8,299 crore in June 2026. Its net debt-to-EBITDA ratio improved to 0.1 times from 0.3 times in the preceding quarter, which the company described as among the best in the industry.

The company generated free cash flow before capital expenditure of Rs 5,803 crore during the quarter, compared with Rs 4,412 crore in the June quarter, taking the first-half total to Rs 10,215 crore. Cash and cash equivalents increased to Rs 26,622 crore at the end of September from Rs 19,992 crore at the end of June.

Vedanta invested Rs 1,135 crore in growth capital expenditure during the quarter, taking its cumulative investment for the first half of FY27 to Rs 2,283 crore. Its overall borrowing cost remained around 8.3 per cent per annum, while credit rating agencies ICRA and CRISIL reaffirmed the company's ratings at AA+/Stable.

The company also declared its first interim dividend of Rs 5 per share.

Commenting on the performance, Vedanta Executive Director Arun Misra said the company delivered another quarter of strong operational performance, supported by record mined metal production at Zinc India, the commissioning of Gamsberg Phase II at Zinc International, record chrome ore production and higher copper cathode output.

Misra said the company invested Rs 1,135 crore in growth projects during the quarter, advancing capacity expansion, mine development and resource security initiatives across its portfolio. He added that the performance reflected the strength of its diversified asset base and its focus on volume growth, cost leadership and value creation for stakeholders.

Group Chief Financial Officer Ajay Goel said record revenue, EBITDA and profit, alongside strong cash generation, had enabled the company to reduce net debt substantially and further improve its leverage position.

With growth opportunities across Hindustan Zinc, Zinc International, FACOR, copper and ports, as well as a portfolio of 11 critical mineral blocks, five of which are under exploration, Vedanta is positioned to pursue its next phase of expansion while maintaining financial discipline, Goel said.

On the funding front, Vedanta Resources Ltd (VRL), the group's parent entity, tied up USD 2.15 billion through international bonds at an average coupon rate of 7.4 per cent and an average maturity of 7.6 years during the first half of FY27. It also secured USD 1.85 billion in syndicated term loans at SOFR plus 265 basis points, with an average maturity of three years. VRL's credit ratings were at a decade-high, with S&P and Fitch Ratings assigning BB/Stable and Moody's assigning Ba3/Positive.

Among operating businesses, Zinc India recorded mined metal production of 271,000 tonnes in the September quarter, up 5 per cent year-on-year, while first-half production rose 3 per cent to 539,000 tonnes. Silver production increased 20 per cent to 173 tonnes in the quarter and 10 per cent to 321 tonnes in the first half. The cost of production of zinc stood at USD 703 per tonne, 29 per cent lower year-on-year and 17 per cent lower sequentially.

Zinc International produced 53,000 tonnes of mined metal in the quarter, down 12 per cent year-on-year but up 9 per cent sequentially. The commissioning of the Gamsberg Phase II project in South Africa added 200,000 tonnes per annum of metal-in-concentrate capacity, taking the business's total capacity to 500,000 tonnes annually.

In the copper business, India sales increased 16 per cent year-on-year to 52,000 tonnes in the quarter and 9 per cent to 105,000 tonnes in the first half. International copper sales declined to 6,000 tonnes during the quarter and 16,000 tonnes in the first half, which the company attributed to the closure of the Strait of Hormuz. The 155,000-tonne-per-annum copper rod plant in Saudi Arabia is progressing well and is expected to be commissioned in the third quarter of FY27.

Ferro Alloys Corporation Ltd (FACOR) recorded ore production of 50,000 tonnes in the quarter, up 6 per cent year-on-year, while first-half production rose 31 per cent to 202,000 tonnes. Ferrochrome production increased 26 per cent to 24,000 tonnes in the quarter and 13 per cent to 53,000 tonnes in the first half. The company also achieved its first tonne of underground ore from the Ostapal mines, strengthening its raw material security.

At its Vizag General Cargo Berth operations, dispatch volumes rose 26 per cent year-on-year to 1.74 million tonnes in the quarter, taking the first-half total to 3.39 million tonnes, up 18 per cent. Discharge volumes increased 22 per cent to 1.83 million tonnes in the quarter and 32 per cent to 4.19 million tonnes in the first half.

On the environmental, social and governance front, Vedanta reported an improvement in workplace safety indicators, with the lost-time injury frequency rate declining to 0.50 in the September quarter from 0.70 a year earlier. The total recordable injury frequency rate improved to 1.51 from 1.80, supported by more than 80,000 critical risk management verifications across operations.

The company said greenhouse gas emissions intensity declined to 3.36 tonnes of carbon dioxide equivalent per tonne of metal from 3.93 tonnes in FY26, while total emissions fell 19 per cent year-on-year to 2.38 million tonnes of carbon dioxide equivalent. Its water recycling rate stood at 43 per cent, with 12.8 million cubic metres of water recycled through rainwater harvesting, recycling and efficiency initiatives.

Vedanta said its skilling, livelihood enhancement, education and entrepreneurship programmes positively impacted 0.46 million individuals, while 9.04 million women and children benefited from healthcare, education, nutrition, sanitation and welfare initiatives.