THEBUSINESSBYTES
BUREAU
MUMBAI,
APRIL 29, 2026
Mining
and natural resources major Vedanta Limited has delivered its strongest-ever
financial performance, reporting record revenue, EBITDA, and profit after tax
for both the fourth quarter (Q4) and the full financial year ended March 31,
2026 (FY26). The stellar performance underscores the company's operational
resilience, disciplined capital allocation, and sustained focus on growth
across its diversified portfolio.
Vedanta
posted a remarkable 89 per cent year-on-year surge in consolidated net profit
for the fourth quarter at ₹9,352
crore. For the full fiscal, profit after tax climbed 22 per cent to an all-time
high of ₹25,096 crore. Quarterly revenue rose 29 per cent to a record ₹51,524
crore, while annual revenue increased 15 per cent to an unprecedented
₹1,74,075 crore.
The
company's operating performance was equally impressive. EBITDA for the March
quarter jumped 59 per cent year-on-year to a historic ₹18,447 crore, with margins expanding sharply
to 44 per cent. For FY26, EBITDA stood at a record ₹55,976 crore, up 29 per cent, reflecting
robust operational efficiency and favorable commodity prices.
Vedanta
also significantly strengthened its balance sheet during the year. Its net
debt-to-EBITDA ratio improved to 0.95x, the lowest in the past 14 quarters,
compared to 1.22x a year earlier. Cash and cash equivalents surged 38 per cent
to ₹28,485 crore, while return
on capital employed improved to around 32 per cent.
Both CRISIL and ICRA reaffirmed Vedanta's AA
credit rating, highlighting the company's strong financial fundamentals.
Operationally,
Vedanta achieved several milestones across its business verticals. Aluminium
production reached a record 2.46 million tonnes, while alumina output surged 48
per cent to 2.92 million tonnes. Zinc India recorded its highest-ever mined
metal production at 1.11 million tonnes. Copper cathode output rose 15 per
cent, ferrochrome production jumped 21 per cent, and power sales increased 14
per cent during the year.
The
company continued to invest aggressively in growth, deploying nearly ₹15,000 crore in capital expenditure during
FY26. Key projects commissioned included Lanjigarh Train II, the new BALCO
smelter, downstream expansions at Jharsuguda, the Debari roaster at Zinc India,
and 1.3 GW of power capacity. Vedanta also achieved significant strategic
milestones, including the acquisition of Incab Industries and an offshore gas
discovery at the Cairn-operated Ambe block.
Commenting
on the stellar performace, Vedanta Executive Director Arun Misra said: "FY26
was a year of strong execution for Vedanta, with record operational performance
across the portfolio. We delivered 2.9 million tonnes of alumina, 2.46 million
tonnes of aluminium, 1.1 million tonnes of mined metal at Zinc India, 895 kt of
pig iron and 101 kt of ferrochrome, reflecting improved operating efficiency
alongside the ramp up of new capacities. During the year, we deployed ₹15,000 crore of growth capex, commissioning
key projects including Lanjigarh Train II, the new BALCO smelter, downstream
expansions at Jharsuguda, the Debari roaster at Zinc India, and 1.3 GW of power
capacity. Our continued focus on operational excellence resulted
in lowest costs in last five years at Aluminium and Zinc business."
"The
quarter marks a defining point for Vedanta, with the delivery of our strongest-ever
financial performance recording all-time highs in Revenue, EBITDA, and PAT for
both the quarter and the full year and a clear positioning for the next phase
of growth with Demerger effective from 1st of May 2026. Our Revenue grew 15 per
cent YoY to ₹1,74,075
crore, EBITDA 29 per cent YoY to ₹55,976
crore and PAT at ₹25,096 crore, marking a 22 per cent jump YoY. Our balance sheet strengthened
further with Net Debt to EBITDA improving to 0.95x, from 1.22x a year ago, and
both CRISIL and ICRA reaffirming VEDL's credit rating
as AA. Pursuing growth with capex investment of ₹14,918 in the year, we continued to reward our
shareholders, paying a handsome dividend of ₹34/share and delivering TSR of
48.6 per cent,"
said Ajay Goel, CFO, Vedanta.
Vedanta's proposed demerger, set to take effect from May 1, 2026, is expected to unlock substantial shareholder value and position its businesses for independent growth trajectories. The company also rewarded investors generously, declaring a total dividend of ₹34 per share during FY26 and delivering an impressive total shareholder return of 48.6 per cent — more than double the return of the Nifty Metal Index.
On the sustainability front, Vedanta invested ₹422 crore in CSR initiatives, positively impacting nearly 6.95 million lives. The company also improved its renewable energy usage by 52 per cent, reduced greenhouse gas intensity by 9.5 per cent, and enhanced water recycling, further strengthening its ESG leadership globally.