Vedanta Q2 Results: Profit Falls 33% As Demerged Businesses Drop Out; Ebitda Rises 17%

Vedanta Ltd.’s consolidated net profit fell 33.3% sequentially in the quarter ended September. The decline came because the previous quarter included earnings from businesses the company has since demerged.

Net profit attributable to shareholders was Rs 3,650 crore in the July–September period, against Rs 5,473 crore in the preceding quarter, according to an exchange filing on Wednesday. It more than doubled from Rs 1,798 crore a year ago.

The June quarter included Rs 2,624 crore of profit from discontinued operations, including the aluminium, oil and gas, iron ore and power undertakings, which were consolidated for April before the demerger took effect on May 1. Excluding them, profit after tax from continuing operations rose 17% QoQ to Rs 6,202 crore before minority interests. That was 151% higher than a year earlier.

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Vedanta Q2 FY27 Highlights (Consolidated, QoQ)

• Revenue rose 8.9% to Rs 26,356 crore versus Rs 24,205 crore.
• Ebitda rose 16.6% to Rs 9,915 crore versus Rs 8,501 crore.
• Ebitda margin was 37.6% versus 35.1%.
• Net profit fell 33.3% to Rs 3,650 crore versus Rs 5,473 crore.

Compared with a year ago, revenue rose 57.5% and Ebitda more than doubled from Rs 4,828 crore.

The company said revenue growth came from “higher commodity prices, favourable forex and higher volumes”.

Zinc Carries The Quarter

Hindustan Zinc contributed Rs 9,243 crore of segment Ebitda, over 90% of the group total. Vedanta holds 60.71% of the company. Hindustan Zinc’s revenue rose 76% YoY to Rs 14,525 crore, and silver alone brought in Rs 4,110 crore. That came even though average LBMA silver prices fell sequentially to $62.6 an ounce from $73.2. Zinc LME prices rose to $3,825 a tonne from $3,466.

Zinc India produced a record 271 kt of mined metal in the quarter. Its cost of production, excluding royalty, fell to $703 a tonne, down 29% YoY.

Zinc International’s segment Ebitda more than doubled sequentially to Rs 550 crore. The Gamsberg Phase II project in South Africa was commissioned during the quarter, taking total capacity to 500 ktpa.

The copper business posted segment Ebitda of Rs 80 crore. Copper rod sales from its Fujairah operations fell 74% YoY to 6 kt, which the company attributed to the closure of the Strait of Hormuz.

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Debt Down

Net debt fell by Rs 4,624 crore during the quarter to Rs 3,675 crore. The company said its net debt-to-Ebitda ratio improved to 0.1 times from 0.3 times in the June quarter. Cash and cash equivalents stood at Rs 26,622 crore.

“Strong cash generation of Rs 5,803 crore during the quarter enabled us to reduce net debt,” Group Chief Financial Officer Ajay Goel said in the release.

Earlier this month, the board approved a first interim dividend of Rs 5 per share for FY27.

In their review report, the statutory auditors drew attention to ongoing regulatory investigations. These include matters linked to a short-seller report and a search by the Enforcement Directorate in June. The auditors did not modify their conclusion.

Shares of Vedanta were trading 2.66% higher at Rs 231.60 apiece as of 2:31 p.m., after the results were announced during market hours.

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