Vedanta revenue jumps 57% to 258.12 billion rupees in second quarter
Key Facts
Vedanta's total revenue jumped 57% to 258.12 billion rupees in the quarter ended September 30, 2026, while consolidated net profit rose 9.1% to 36.50 billion rupees, according to Reuters. The results showed growth in operating profit and a sharp reduction in debt, after higher metal prices supported revenue during the quarter. Earnings before interest, taxes, depreciation and amortization stood at 9,915 crore rupees, up 16.6% from the previous quarter, according to NDTV Profit. The margin on those earnings rose to 37.6% from 35.1% in the June quarter. The company said revenue benefited from "higher commodity prices, improved foreign exchange rates and higher volumes."
Profit after tax from continuing operations rose to 6,202 crore rupees before minority interests, up 17% from the previous quarter and 151% year on year, according to NDTV Profit. This figure separates the performance of continuing businesses from operations that left the group after the demerger, affecting the quarter-on-quarter comparison. The June quarter included 2,624 crore rupees in profit from discontinued operations, including aluminium, oil and gas, iron ore and power. Those businesses were consolidated in the company's accounts for April, before the demerger took effect on May 1, 2026. By contrast, consolidated net profit for the quarter was 36.50 billion rupees, up 9.1%, according to Reuters data.
Base metal prices supported the quarter's results: spot zinc rose 35% and copper 44% year on year from July to September, while lead fell 6%, according to Reuters. Commodity prices contributed to group revenue alongside improved foreign exchange rates and higher volumes, as the company told NDTV Profit. But higher revenue coincided with rising input costs: raw material costs jumped 42.5%, and total expenses rose about 34% to 184.76 billion rupees, according to Reuters. The net profit margin rose to 24% from 13% a year earlier, the same report said. This margin differs from the consolidated EBITDA margin of 37.6% for the quarter, and each measures a different aspect of the results.
Hindustan Zinc stood out among the group's performance drivers, contributing 9,243 crore rupees in segment earnings before interest, taxes, depreciation and amortization, or more than 90% of the group's total, according to NDTV Profit. The subsidiary's revenue rose 76% to 14,525 crore rupees in the September quarter. Its Indian zinc operations recorded a record 271,000 tonnes of mined metal production during the quarter. Production costs, excluding royalties, also fell to $703 per tonne, down 29% from a year earlier. These figures reflect zinc's contribution to the group's operating profit in a quarter when spot metal prices rose 35% year on year, according to Reuters.
Revenue growth extended into the first half of fiscal 2027, reaching 49,268 crore rupees, up 54% year on year, according to HDFC Sky. Profit after tax from continuing operations reached 11,496 crore rupees, up 151% year on year. This figure covers continuing operations and does not represent net profit including discontinued operations. On liquidity, Vedanta reduced net debt by 4,624 crore rupees during the quarter to 3,675 crore rupees as of September 30. The net debt-to-operating earnings ratio improved to 0.1 times from 0.3 times at the end of the June quarter, according to NDTV Profit.
The chief financial officer said cash generation of 5,803 crore rupees during the quarter enabled the reduction in net debt. Chief Executive Arun Misra said the company was on track to eliminate net debt by the end of the third quarter, according to an interview with Reuters. Reuters also quoted Misra as saying the company targets reaching a net cash position by the end of December. In trading, Vedanta shares rose 2.66% to 231.60 rupees at 2:31 p.m. on October 28, according to NDTV Profit. The share move reflected the market's reaction during the results session, while the company put its debt reduction target at the top of its agenda through year-end.