Vedanta smashes records in Q3FY26 as profit jumps 60pc and revenue touches all-time high

THEBUSINESSBYTES BUREAU

MUMBAI, JANUARY 29, 2026

Anil Agarwal-led Vedanta Limited delivered a blockbuster performance in the third quarter (Q3) of FY26, reporting its strongest-ever quarterly results marked by sharp profit growth, record revenue and robust operational momentum across businesses. The diversified natural resources major posted a consolidated profit after tax of ₹7,807 crore for the quarter ended December 31, 2025, registering a stellar 60 per cent year-on-year surge, underscoring the strength of its integrated portfolio and disciplined cost management.

The company achieved its highest-ever quarterly revenue at ₹45,899 crore, up 19 per cent year-on-year, supported by higher volumes, favourable commodity prices, premiums and forex gains. EBITDA rose to an all-time high of ₹15,171 crore, reflecting a 34 per cent annual increase, while margins expanded sharply by 629 basis points to 41 per cent, highlighting strong operating leverage and efficiency gains across key segments.

Vedanta’s balance sheet continued to strengthen during the quarter, with the net debt-to-EBITDA ratio improving to 1.23x from 1.40x a year earlier. Return on Capital Employed remained healthy at 27 per cent, improving by 296 basis points year-on-year. Reflecting growing confidence in the company’s financial position and strategic direction, credit rating agencies CRISIL and ICRA reaffirmed Vedanta’s AA rating following the National Company Law Tribunal’s approval of the company’s demerger plan.

Operationally, Vedanta delivered record production across several businesses. Aluminium production reached its highest-ever quarterly level at 620 kilotonnes, while alumina output surged 57 per cent year-on-year to a record 794 kilotonnes, driven by ramp-ups and improved efficiencies. Zinc India recorded its best-ever third-quarter mined metal production at 276 kilotonnes and refined metal production at 270 kilotonnes, both up 4 per cent year-on-year. Significantly, Zinc India achieved its lowest third-quarter cost of production in the last five years at $940 per tonne, reflecting sustained cost optimisation initiatives.

Zinc International operations reported a strong performance with production rising 28 per cent year-on-year to 59 kilotonnes, led by improved recoveries at Gamsberg. The Iron Ore business reported ore production of 1.2 million tonnes, while pig iron output increased 6 per cent year-on-year to 229 kilotonnes. Copper cathode production stood at 45 kilotonnes, marking the highest quarterly output in seven years, and ferrochrome production surged 32 per cent year-on-year to 24 kilotonnes. The Power business also delivered an impressive quarter, with sales volumes rising 61 per cent year-on-year.

During the nine months of FY26, Vedanta invested around USD 1.3 billion in growth capital expenditure to strengthen capacity, efficiency and long-term competitiveness. The quarter also marked several strategic milestones, including the NCLT’s approval of Vedanta’s proposed demerger into five pure-play entities, a move aimed at unlocking long-term value and enhancing operational focus. The company further strengthened its downstream footprint with the acquisition of Incab Industries and expanded its resource base by securing three additional mining blocks of high-value critical minerals, taking its total assigned blocks to 11.

Vedanta’s strong fundamentals translated into exceptional shareholder returns. The company delivered a total shareholder return of around 30 per cent during the quarter, outperforming the Nifty by five times and the Nifty Metal index by nearly three times, as its shares repeatedly touched lifetime highs. Over the last five years, total shareholder returns have stood at an impressive 428 per cent, complemented by a cumulative dividend yield of 73.5 per cent.

Commenting on the performance, Arun Misra, Executive Director, Vedanta, said the third quarter of FY26 was a landmark period for the company, marked by its highest-ever EBITDA and record financial results across multiple businesses. He highlighted Aluminium’s strongest-ever EBITDA margin of $1,268 per tonne, Zinc India’s record EBITDA of ₹6,064 crore driven by strong metal and silver output, and Zinc International’s production growth led by improved recoveries at Gamsberg. He also noted key achievements such as India’s first subsea template installation by the Oil and Gas business and robust growth in the Thermal Power segment, adding that the NCLT approval for the demerger positions Vedanta strongly for its next phase of value creation under the Vedanta 2.0 journey.

Ajay Goel, Chief Financial Officer, Vedanta, said the company delivered its highest-ever quarterly profit and revenue, supported by sharp margin expansion and improved leverage. He emphasised that the reaffirmation of Vedanta’s AA credit rating by CRISIL and ICRA, along with positive outlook upgrades by global rating agencies, reflects strong market confidence in the company’s growth trajectory and financial discipline.

Alongside financial and operational performance, Vedanta continued to advance its ESG agenda during the quarter. Vedanta Aluminium secured second rank in the S&P Corporate Sustainability Assessment for the third consecutive year, while Cairn Oil & Gas, in its first participation, ranked among the top global performers in the upstream oil and gas sector. The company improved its water stewardship with higher recycling levels and reduced greenhouse gas intensity, while increased use of renewable energy supported progress toward its sustainability goals. On the social front, Vedanta invested nearly ₹268 crore in CSR initiatives, positively impacting 5.5 million lives, with focused efforts on education, women empowerment and community development.

Vedanta Limited is a global leader in metals, oil & gas, critical minerals, power and technology. The company supplies essential materials that drive the global energy transition, emerging technologies and the green economy. Its diversified portfolio underpins industrial growth, energy security and technological advancement across global value chains. With operations across India, Africa, the Middle East and East Asia, Vedanta is firmly positioned in high-growth regions shaping the next phase of global development. Sustainability is central to its strategy, guided by strong ESG governance, people-first workplaces and a commitment to achieving net-zero emissions by 2050 or earlier, while creating long-term value for all stakeholders.