Vedanta Reports 59% Drop in Q2 Profit Despite Record Revenue
Despite achieving its highest-ever quarterly revenue, Indian metals and mining giant Vedanta saw its consolidated net profit decline by 59% in the second quarter of fiscal year 2026.
Vedanta limited reported a consolidated net profit of ₹1,798 crore (approximately $215 million USD) for the July-September quarter, a significant decrease compared to the ₹4,352 crore reported in the same period last year. The company attributed the downturn to a ample net exceptional loss of ₹2,067 crore,a stark contrast to the ₹1,868 crore gain recorded in the year-ago quarter.
However, the company’s total revenue from operations reached a record ₹39,868 crore, marking a 5.9% increase from ₹37,634 crore in the previous year.
second-quarter EBITDA of ₹11,612 crore, a 12% year-on-year increase, bolstered by a margin expansion of 69 basis points to 34%. The company’s net debt-to-EBITDA ratio remained stable at 1.37x, and its credit rating was reaffirmed at AA, signaling continued financial stability.
A company release highlighted successful refinancing efforts by its parent company, Vedanta Resources Limited, securing $550 million through a bond issue. This move reduced the overall interest cost from 11.6% to 10% and extended the average debt maturity to 4.5 years, improving the company’s long-term financial position.
Operational Highlights across Key Segments
Vedanta showcased strong production growth across several key business segments:
- Aluminium: Record quarterly alumina production reached 653 kilotonnes (kt), up 31% year-on-year and 11% quarter-on-quarter. Cast metal aluminium production also hit a record at 617 kt, increasing by 1% year-on-year and 2% quarter-on-quarter. Notably, BALCO, a Vedanta subsidiary, produced its first metal from India’s largest 525 kA smelter.
- Zinc: Zinc India reported its highest-ever second-quarter mined metal production at 258 kt, a 1% year-on-year increase. The company also achieved its lowest Q2 Hindustan Zinc Limited (HZL) cost of production (COP) in the last five years, at $994 per tonne, down 7% year-on-year and 2% quarter-on-quarter. Zinc international saw mined metal production rise 38% year-on-year to 60 kt,with Gamsberg’s production surging 54% year-on-year to 49 kt.
- Oil & Gas: Q2 FY26 production stood at 89.3 thousand barrels of oil equivalent per day (kboepd).
- Iron Ore, steel, and Copper: Iron ore production at IOG increased by 48% year-on-year to 0.1 million tonnes. Record quarterly pig iron production reached 238 kt, up 26% year-on-year and 12% quarter-on-quarter.
Vedanta also expanded its power generation capacity, commissioning the Athena (600 MW) and Meenakshi (1,000 MW) plants, bringing its total merchant thermal power capacity to 4.2 GW.
Future Outlook
According to a statement from Executive Director Arun Misra, the company’s first half of FY26 performance demonstrates “Vedanta’s resilience” despite challenging market conditions and lower commodity prices. “We achieved record production of aluminium, alumina, and zinc MIC in our international operations, alongside pig iron and power generation,” Misra stated.
He further added that Vedanta is “well-positioned to deliver its best-ever performance in FY26,” anticipating full-year EBITDA to exceed the historic peak of around $6 billion achieved in FY22, supported by increased production capacity and an expected recovery in commodity prices. .