Vedanta Q1 PAT rises 152% to record Rs 5,294 crore

Vedanta Limited reported consolidated revenue of Rs 23,456 crore for the quarter ended June 30, 2026, up 51% year-on-year, while Profit After Tax (PAT) increased 152% to Rs 5,294 crore, the company’s highest-ever quarterly PAT. Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) nearly doubled to Rs 8,469 crore from Rs 4,267 crore in Q1 FY26.

EBITDA margin increased to 57% from 47% a year earlier, an improvement of 985 basis points. Compared with Q4 FY26, revenue declined 1% from Rs 23,731 crore, while EBITDA increased 9% from Rs 7,785 crore and PAT rose 24% from Rs 4,267 crore. Vedanta attributed the EBITDA growth to higher London Metal Exchange (LME) prices, premiums, foreign exchange gains and higher volumes.

Financial position

Vedanta’s net debt stood at Rs 8,299 crore as of June 30, 2026, after declining by Rs 2,223 crore during the quarter. Its net debt-to-EBITDA ratio was 0.30x, while Return on Capital Employed stood at 29%. Cash and cash equivalents were Rs 19,992 crore, and the overall borrowing cost remained below 8.5% per annum. The company invested Rs 1,148 crore in growth capital expenditure during Q1 FY27.

ICRA upgraded Vedanta’s credit rating to AA+/Stable in May 2026, followed by CRISIL upgrading the rating to AA+/Stable in July 2026. At the parent level, Vedanta Resources Limited (VRL) reduced debt by $1.1 billion at the group level. It also tied up $1.75 billion of international bonds at an average coupon rate of 7.4% and average maturity of 8.5 years, along with a $2.25 billion syndicated term loan at approximately 6.4% interest with an average maturity of three years.

Energy use

Vedanta’s renewable energy consumption increased to 0.291 billion units during Q1 FY27 from 0.231 billion units in Q1 FY26. Greenhouse Gas (GHG) intensity declined to 3.68 tCO2e/t-metal from 3.91 tCO2e/t-metal in the corresponding period.

At Zinc India, renewable power accounted for 22% of overall power consumption during the quarter. The business recorded mined metal production of 268 KT, its highest-ever first-quarter output for the fifth consecutive year, while refined metal production increased 4% year-on-year to 260 KT. Silver production stood at 149 tonnes, contributing approximately 46% to overall profitability, while quarterly zinc cost of production declined 16% year-on-year to $851/tonne.

Vedanta’s Copper India operations increased their renewable energy share to 64% and recorded their highest first-quarter rod production and sales in the last eight years.

Growth projects

At Zinc International, Gamsberg Phase 2 reached 97.5% completion, with first ore charging scheduled for August 2026. Gamsberg recorded 21 million metric tons of total rock mined during Q1 FY27 and its highest-ever ore mining of 1,025 kt.

The KSA Rod Mill project reached 58% completion and is expected to be completed by September 2026. Zinc India’s Hot Acid Leaching Technology and 510 KTPA Fertilizer Project are scheduled for Q2 FY27, while Ferrochrome (FACOR) Ostapal Underground Operations are targeted for H1 FY27.

Longer-term projects include Zinc India’s 10 Mtpa Tailings Reprocessing Plant, scheduled for Q4 FY28, and FACOR’s 330 KTPA Smelter Plant, expected in H2 FY28.

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