Vedanta Iron and Steel posts 324 crore rupee loss as first-half revenue rises 8%
Key Facts
Vedanta Iron and Steel reported a post-tax loss of 324 crore rupees in the second quarter of fiscal 2027, compared with a loss of 477 crore rupees in the same period a year earlier. The company’s results statement, issued on October 27, showed year-on-year improvement in operating profit, with earnings before interest, taxes, depreciation and amortization reaching 83 crore rupees, up 56%. The margin on those earnings rose to 3%, an increase of 112 basis points year on year. Operating revenue was 2,788 crore rupees during the quarter. The figures put a continuing net loss alongside improved operating metrics compared with the same quarter last year.
The company said quarterly performance was affected by seasonal disruptions in iron ore production, planned plant shutdowns, and higher input and conversion costs. This coincided with scheduled furnace maintenance; the company had reported in its production disclosure that saleable production in the second quarter fell 9% from the first quarter because of the maintenance. By contrast, iron ore production in Odisha rose 34% year on year to 0.9 million dry metric tonnes, while production in Goa increased 22% to 0.1 million dry metric tonnes. The figures highlight the contrast between year-on-year growth in ore production and the pressure that shutdowns and maintenance placed on quarterly performance. The company did not provide a comparison of operating revenue with the previous quarter in its results statement.
In the first half of fiscal 2027, earnings before interest, taxes, depreciation and amortization rose 54% to 598 crore rupees, and revenue grew 8% to 6,450 crore rupees. The operating margin widened by 275 basis points year on year to 9%, reflecting improvement over the six-month period compared with the corresponding period. The company’s post-tax loss also narrowed to 203 crore rupees, from 622 crore rupees in the first half of the previous fiscal year. The year-on-year reduction in the net loss was therefore more pronounced in the first half than in the quarter alone. The first-half results provide broader context for the quarterly result, with the second quarter still affected by the operating factors identified by the company.
Steel production in the first half rose 4% year on year to 1.114 million tonnes, while pig iron production was 568,000 tonnes, up 4%, marking the highest first-half output of that product, according to the company. In the Indian steel market, the Ministry of Steel said finished steel consumption reached 85 million tonnes during April and September of fiscal 2027, up 7.6% year on year. India remained a net importer of finished steel by volume over the same period, with imports rising 23.8% to 4.14 million tonnes. The average price of 2 mm hot-rolled steel coil was 77,620 rupees per tonne in October, up 2% month on month and 31.6% year on year. These indicators offer a picture of the market in which the company operates, alongside its production growth in the first half.
The chief executive said the company completed planned shutdowns at its Bokaro and Goa operations during the quarter “to strengthen asset reliability for the second half.” At Bokaro, the company secured 21 megawatts of solar power through open access, with the potential to reduce annual emissions by about 50,000 tonnes of carbon dioxide. The company also announced that CRISIL assigned it an AA/Stable credit rating during the second quarter and first half. The company had scheduled a call to discuss its results and performance on October 27, 2026, from 5 p.m. to 5:30 p.m. India time. The call is scheduled to provide an opportunity to discuss the period’s results and the company’s performance with investors.