Vedanta Oil and Gas Posts 746 Crore Rupee Profit as Suzlon Revenue Rises 26%
Key Facts
Vedanta Oil and Gas reported a profit after tax of 746 crore rupees in the quarter ended September 2026, compared with a loss of 92 crore rupees in the corresponding period of the previous fiscal year, Business Standard reported. The company’s total income rose 3% to 2,628 crore rupees from 2,544 crore rupees a year earlier. The return to profitability came as oil and gas production declined, placing income growth and the financial result alongside a contraction in output. The company attributed its performance to higher realised prices and cost improvements, according to the report. In trading on October 30, its shares rose 12.81% to 31.44 rupees at 12:40 p.m. India time, according to Business Standard data.
Vedanta’s production was 6.6 million barrels of oil equivalent in the September quarter, down 19% from 8.2 million barrels of oil equivalent in the corresponding period a year earlier. The company said production-improvement initiatives included well interventions and ongoing artificial-lift optimisation programmes. It said these measures boosted recovery from its mature assets in Rajasthan and Ravva. Interim Chief Executive Officer Jim Jony Gast said the focused initiatives were “driving a halt to decline across our mature assets, while new discoveries enhance the untapped potential of our acreage.” The strategy places halting decline at existing assets alongside developing new discoveries among the company’s operational priorities.
The company’s announced plans include deepwater exploration off the east coast, starting the full-scale phase of alkaline-surfactant-polymer injection in North Rajasthan, and exploration campaigns in the northeast. These programmes come as quarterly production recorded a year-on-year decline, while the company pointed to efforts to boost recovery from mature assets. Suzlon Energy, meanwhile, reported adjusted consolidated net profit of 394 crore rupees in the second quarter of fiscal 2027, compared with 389 crore rupees a year earlier, according to Moneycontrol. Reported profit for the corresponding period a year earlier was 1,279 crore rupees, but included a deferred tax benefit of 891 crore rupees. The adjusted comparison therefore shows a modest increase in profit, while the earlier reported figure reflects the impact of the tax benefit.
Suzlon’s operating revenue rose 26% year on year to 4,869 crore rupees in the second quarter of fiscal 2027, supported by deliveries of 710 megawatts of wind turbines, compared with 565 megawatts in the corresponding period. Chief Executive Officer Ajay Kapoor said, “Our record deliveries of 710 megawatts in the second quarter and strong commissioning of 454 megawatts reflect improved execution.” Capacity commissioned was 454 megawatts in the September quarter, LiveMint reported, citing Kapoor. But revenue and deliveries growth was not accompanied by a similar improvement in operating margins. EBITDA was steady at 720 crore rupees, compared with 721 crore rupees a year earlier, while its margin narrowed to 14.8% from 18.6%.
Suzlon’s profit before tax fell 7.8% to 518 crore rupees in the second quarter, according to Moneycontrol. In trading tracked by India Infoline on October 30 at 11:21 a.m. India time, the shares fell 8.83% to 33.54 rupees. The stock traded between 33.23 and 36.58 rupees during the session, the same source said. These data do not establish that the company’s results alone caused the share decline during the October 30 session.
Suzlon’s order book stood at more than 6 gigawatts at the end of the quarter, while incoming orders exceeded 1.5 gigawatts in the first half of fiscal 2027, according to Moneycontrol. Management cut its fiscal 2027 EBITDA margin guidance to 15% plus or minus, from 17% plus or minus previously, LiveMint reported. In separate updates on October 30, JM Financial downgraded Suzlon from BUY to ADD and cut its price target to 40 rupees from 46 rupees, citing expected margin pressure and growth prospects from fiscal 2028. ICICI Securities maintained its buy recommendation but lowered its price target to 55 rupees from 65 rupees. These updates put margin guidance and existing orders at the centre of attention on the company in the coming periods.