Vedanta Raises Second-Quarter Revenue 57% to 25,812 Crore Rupees
Key Facts
Vedanta’s revenue rose 57% year on year to 25,812 crore rupees in the second quarter ended September 2026, from 16,445 crore rupees in the year-earlier period, according to data reported by Business Standard. EBITDA reached a record 9,938 crore rupees, up 106% year on year and 17% from the previous quarter, according to Capital Market. The EBITDA margin widened to 60%, though the company calculated it excluding its copper business. The margin increased 1,055 basis points from a year earlier and 293 basis points from the first quarter of fiscal 2027. The results also showed improved cash flows and lower net debt during the quarter.
The company attributed operating profit growth mainly to favorable market and regulatory factors, alongside higher volumes, marketing benefits and other factors, partly offset by higher costs, Business Standard reported. These factors were consistent with movements in base-metal prices during the July-to-September quarter: spot zinc rose 35% year on year, copper gained 44%, while lead fell 6%, according to Jefferies data cited by Reuters. Reuters reported that the net profit margin was 24%, compared with 13% a year earlier. Meanwhile, raw-material costs rose 42.5%, and total expenses increased nearly 34% to 184.76 billion rupees. Margin improvement thus coincided with pressure from input costs during the quarter.
Vedanta generated free cash flow before capital expenditure of 5,803 crore rupees in the September quarter, compared with 4,412 crore rupees in the first quarter of fiscal 2027, Business Standard reported. Net debt fell 4,624 crore rupees sequentially to 3,675 crore rupees on September 30, from 8,299 crore rupees in June. The net debt-to-operating profit ratio improved to 0.1 times, from 0.3 times in the first quarter, according to Capital Market. The company said strong cash generation enabled it to reduce debt during the period. The figures point to an improved debt position alongside higher operating profit, with the debt comparison between the two quarter-ends reflecting sequential changes.
On production and sales, silver output rose 20% to 173 tonnes during the quarter, while copper sales in India increased 16% to 52,000 tonnes year on year, Business Standard reported. Revenue growth extended into the first half of fiscal 2027, reaching 49,268 crore rupees, according to Business Today. First-half operating profit was 18,407 crore rupees, while net profit reached 11,496 crore rupees. The coverage said first-half operating profit rose 103% year on year and net profit increased 151%. The silver and copper figures offer a view of specific businesses within the company’s results, alongside the impact of market prices.
The comparison with the previous quarter was also affected by a change in the business perimeter following the demerger: the June quarter included 2,624 crore rupees in discontinued-operations profit, according to NDTV Profit. Those operations included aluminium, oil and gas, iron ore and power businesses, which remained in the accounts for April before the demerger took effect on May 1, 2026. Emkay Global analysts said higher average zinc prices in the July-to-September quarter were expected to support revenue growth in Vedanta’s Indian zinc business, Reuters reported. Group subsidiary Hindustan Zinc had announced more than a doubling of quarterly profit the previous week, according to the report. The difference in business scope between the two quarters puts the sequential comparison in the context of the group’s restructuring.
Vedanta shares moved higher after the results announcement, trading up 2.66% at 231.60 rupees a share as of 2:31 p.m. on October 28, according to NDTV Profit. The Financial Express reported that the stock rose more than 3% during intraday trading that day, after falling more than 11% in the previous month. The company also approved on October 8 its first interim dividend for fiscal 2026-2027, of 5 rupees a share and totaling about 1,955 crore rupees, Business Standard reported. The company set October 14 as the record date. The dividend came before the second-quarter results announcement on October 28, preceding the share’s reaction to the quarterly figures.