Vedanta (VEDL) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 marks the first reporting period post-demerger, with four new entities listed by June 15, unlocking value and increasing combined market capitalization by over ₹71,000 crore.

• Group-wide, revenue and EBITDA reached record or near-record highs, supported by robust commodity prices, cost discipline, and operational efficiencies.

• Net debt/EBITDA improved to 0.3x, with cash and cash equivalents at ₹19,992 crore and net debt at ₹8,299 crore.

• Multiple credit rating upgrades to AA+/Stable or AA/Stable, highest since 2014, and international ratings also improved.

• The quarter's results are not directly comparable to previous periods due to the demerger and reclassification of major segments.

Financial highlights

• Consolidated revenue from continuing operations was ₹24,205 crore, with total income at ₹24,747 crore for Q1 FY27.

• Vedanta Limited revenue up 51% YoY to INR 23,456 crore; EBITDA at INR 8,469 crore, margin 57%.

• Net profit after tax from continuing operations was ₹5,294 crore; total net profit (including discontinued) was ₹7,918 crore.

• Free cash flow (pre-capex) was ₹4,412 crore; basic EPS for continuing and discontinued operations was ₹14.02.

• Discontinued segments (Aluminium, Oil & Gas, Iron Ore, Power) contributed ₹9,204 crore in revenue and ₹3,891 crore in EBITDA for April 2026.

Outlook and guidance

• Aluminium cost guidance for FY 2027 remains $1,650-$1,700/ton; Q2 cost may be marginally higher due to planned shutdowns.

• Gamsberg Phase 2 ramp-up targeted for Q2FY27, with first ore charge scheduled for August 2026.

• Multiple growth projects underway, including new smelter, beneficiation plants, and expansion in zinc, copper, and ferrochrome.

• Group-wide CapEx for FY 2027 projected at INR 20,000 crore, with continued focus on growth, deleveraging, and shareholder returns.

• The demerger is expected to streamline operations and align segment reporting with new business structures.