#VedantaResults #Q1FY26 #AluminumProduction #ZincIndia #EBITDA #PowerSector #SmartMining #FinancialResults #IndiaMetals #MakeInIndia #CostEfficiency
Chandigarh — Vedanta Limited (BSE: 500295 & NSE: VEDL) has posted a strong performance for the first quarter ended June 30, 2025, with a 13% year-on-year (YoY) jump in profit after tax (PAT), reaching ₹5,000 crore. The company’s results reflect a sharp focus on operational efficiency, record-breaking production figures, and prudent cost management across business verticals.
Vedanta also reported its highest-ever first-quarter EBITDA at ₹10,746 crore, a 5% increase YoY. The EBITDA margin (excluding copper operations) rose to 35%, up by 81 basis points (bps) — marking the best margin performance in the last 13 quarters. Consolidated revenue for the quarter stood at ₹37,434 crore, up 6% YoY, further reinforcing the company’s solid operational base and resilience amidst global volatility.
Robust Operational Metrics
Key to Vedanta’s Q1FY26 performance was its ability to scale operations while optimizing costs:
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Aluminum Division: Vedanta clocked a record alumina production of 587 KT (up 9% YoY), with the lowest hot metal cost (excluding alumina) of $888/tonne in 16 quarters. The overall cost of aluminum production dropped by 12% quarter-on-quarter (QoQ), highlighting improved cost efficiencies.
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Zinc India: Achieved the highest-ever first-quarter mined metal production at 265 KT, while also registering the lowest Q1 cost of production (CoP) at $1,010/tonne — down 9% YoY.
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International Zinc Operations: These operations recorded a massive 50% YoY rise in mined metal output, with CoP down by 21% YoY to $1,269/tonne.
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Power Segment: Vedanta’s power sales surged 33% QoQ, driven by new capacities. The Athena power plant (600 MW) was commissioned in July 2025, and Meenakshi power plant unit 3 (350 MW) achieved commercial operations.
Strategic Financial Moves
Vedanta also reported a 7% sequential and 33% YoY increase in liquidity, with cash and cash equivalents totaling ₹22,137 crore. The company’s Return on Capital Employed (ROCE) improved by 87 bps to reach 25%. Its net debt to EBITDA ratio now stands at 1.3x, showcasing a healthier balance sheet and stronger financial flexibility.
In addition, the company raised ₹5,000 crore through non-convertible debentures (NCDs) and completed refinancing at reduced costs. This helped lower its overall debt cost by 130 bps YoY to 9.2%.
Credit rating agencies CRISIL and ICRA reaffirmed Vedanta’s rating at ‘AA’, citing sound fundamentals and strategic focus.
Strategic Commentary from Leadership
Mr. Anil Agarwal, Chairman of Vedanta, expressed optimism about the company’s trajectory:
“Our Q1 performance has set a strong foundation for the year ahead. Amid global volatility, we’ve delivered the highest-ever Q1 EBITDA, reduced production costs, and ramped up operations across business lines. With the commissioning of Train II at Lanjigarh, 435 KT smelter capacity at Balco, and 1,300 MW of new thermal power in Q2, we are well positioned to achieve our full-year guidance. Additionally, new mining operations like Sijimali bauxite and Kuraloi coal will further bolster our capabilities in the second half of the fiscal.”
Mr. Ajay Goel, Chief Financial Officer of Vedanta, emphasized the company’s strong financial posture:
“We’ve delivered solid performance with a 13% YoY increase in PAT and highest first-quarter EBITDA. The recent stake sale in Hindustan Zinc Ltd (HZL) brought in ₹3,028 crore, further improving liquidity. Our ability to reduce the cost of debt and maintain healthy leverage ratios showcases our strategic capital management and investor trust.”
Looking Ahead
Vedanta’s Q1FY26 performance highlights its readiness to capture further growth while maintaining a focus on cost discipline, digital innovation, and sustainability. With multiple large-scale projects expected to come online in Q2FY26 — including expansions in alumina refining, aluminum smelting, and power generation — the company is poised to capitalize on favorable market conditions.
The start of operations at the Sijimali bauxite mine and the Kuraloi coal mine in the second half of FY26 is expected to further reduce dependence on third-party sourcing and increase operational efficiencies.
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