Vedanta posts stellar Q1 FY27 performance as profit soars 152pc; Record operations, strong balance sheet drive growth

THEBUSINESSBYTES BUREAU

MUMBAI, JULY 30, 2026

Vedanta Limited has delivered one of its strongest quarterly performances, reporting a remarkable 152 per cent year-on-year surge in Profit After Tax (PAT) from continuing operations to ₹5,294 crore for the first quarter ended June 30, 2026. The robust financial results were powered by record operational achievements across multiple business segments, significantly higher margins, strong cash generation and a resilient balance sheet, underscoring the company's strong start to FY27.

The diversified natural resources major reported consolidated revenue of ₹23,456 crore during the quarter, registering a healthy 51 per cent year-on-year growth. Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) nearly doubled to ₹8,469 crore, reflecting a 98 per cent increase over the corresponding quarter last year. The company's EBITDA margin expanded sharply by 985 basis points year-on-year to an impressive 57 per cent, highlighting improved operational efficiencies and cost optimisation across its businesses.

Vedanta continued to invest in future growth, incurring a capital expenditure of ₹1,148 crore during the quarter to support its long-term expansion plans. The company's Return on Capital Employed (ROCE) improved to around 29 per cent, reflecting disciplined capital allocation and enhanced operational productivity.

The company further strengthened its financial position during the quarter, ending June with a net debt of ₹8,299 crore and an exceptionally low Net Debt-to-EBITDA ratio of just 0.3 times, demonstrating one of the strongest balance sheets in the diversified natural resources sector. Vedanta also maintained a healthy liquidity position with cash and cash equivalents of ₹19,992 crore, providing significant financial flexibility to fund future growth initiatives while maintaining financial stability.

Reinforcing confidence in its financial health, both CRISIL and ICRA upgraded Vedanta Limited's credit rating to AA+/Stable, reflecting the company's stronger balance sheet, improving profitability and conservative leverage profile.

Operationally, Vedanta recorded several landmark achievements across its portfolio during the quarter. Zinc India registered its highest-ever first-quarter mined metal production of 268 kilo tonnes while maintaining the industry's lowest quarterly zinc cost of production at US$851 per tonne following its successful underground mining transition. FACOR achieved its highest-ever quarterly EBITDA, supported by record ore production of 153 kilo tonnes, marking a robust 41 per cent year-on-year increase.

The Copper business delivered its highest first-quarter rod production in eight years, reflecting improved operational efficiencies and stronger market demand. The Vizag General Cargo Berth (VGCB) handled a record cargo volume of 2.36 million metric tonnes during the quarter, registering an impressive 40 per cent year-on-year growth. At Zinc International, the Gamsberg mine continued to improve performance, with zinc recovery increasing to 77.1 per cent while the Phase II expansion project remained firmly on schedule.

Commenting on the company's performance, Arun Misra, Executive Director, Vedanta Ltd, said the company had delivered a strong start to FY27 with robust operational performance across all businesses following the demerger. He highlighted that Zinc India achieved its highest-ever first-quarter mined metal production, FACOR delivered record ore production and EBITDA, Copper India posted its highest first-quarter sales in eight years, while Zinc International continued building momentum at Gamsberg with Phase I output increasing sequentially and Phase II expected to commence during the current quarter. He noted that the consistent execution across Vedanta's portfolio reflected the strength of its asset base and the company's sustained focus on volume growth, cost efficiency and long-term value creation.

Ajay Goel, Group Chief Financial Officer, Vedanta, said the ongoing demerger was unlocking significant shareholder value, with the combined market capitalisation of the resulting companies increasing by more than ₹71,000 crore during the first quarter. He noted that Vedanta Limited's PAT rose to ₹5,294 crore, up 152 per cent year-on-year, while EBITDA increased by 98 per cent to ₹8,469 crore. He also highlighted the reduction in net debt by ₹2,223 crore, the improvement in leverage to 0.3 times and the AA+/Stable credit rating upgrades from both ICRA and CRISIL as key indicators of the company's strengthening financial profile.

Beyond financial and operational achievements, Vedanta also reported steady progress across its Health, Safety, Environment and Security (HSES) initiatives. Renewable energy consumption increased to 0.291 billion units during Q1 FY27 from 0.231 billion units in the corresponding quarter last year. The company improved its greenhouse gas intensity to 3.68 tonnes of CO₂ equivalent per tonne of metal, compared with 3.91 tonnes in Q1 FY26, reflecting continued progress towards its climate action commitments.

Vedanta maintained a Lost Time Injury Frequency Rate (LTIFR) of 0.51 during the quarter while increasing women's representation across its workforce to 23 per cent as part of its diversity and inclusion agenda. The company's community development programmes continued to make a significant social impact, with skill development initiatives benefiting 1.75 million families and education, healthcare, rural infrastructure, grassroots art, culture, sports, and women and child development programmes positively impacting over 31.08 million women and children.