Vedanta Aluminium Metal (VAML) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 marked the first reporting period post-demerger, with all five Vedanta entities reporting strong operational and financial performance, including record aluminium production of 632 KT (+5% YoY) and highest-ever value-added output at 389 KT.

• Significant deleveraging and refinancing at Vedanta Limited and Vedanta Resources, with improved credit ratings (AA+/AA- stable) across entities.

• Robust growth in revenue, EBITDA, and PAT across most segments, supported by cost optimization, operational efficiency, and favorable market conditions.

• BALCO became a subsidiary after a 51% stake acquisition, and equity shares were listed on BSE and NSE.

• Unaudited standalone financial results for Q1 FY27 were reviewed and approved, with no material misstatements identified.

Financial highlights

• Vedanta Aluminium revenue at ₹21,105 crore (+45% YoY); EBITDA at ₹10,499 crore (+134% YoY); PAT at ₹6,597 crore (+205% YoY); EBITDA margin at ~50%.

• Vedanta Limited revenue up 51% YoY to ₹23,456 crore; EBITDA at ₹8,469 crore (57% margin); PAT at ₹5,294 crore.

• Standalone Q1 FY27 revenue at ₹10,817 crore and net profit at ₹1,390 crore post-demerger.

• Net debt reduced by ₹3,481 crore; net debt/EBITDA at 0.9x; cash and equivalents at ₹6,068 crore.

• Interim dividend of ₹28 per share approved for FY27.

Outlook and guidance

• Aluminium segment maintains cost guidance of $1,650–$1,700/t for FY27, with Q2 costs expected marginally higher due to planned shutdowns and geopolitical impacts.

• FY27 aluminium production guidance: 2.6–2.7 MnT; alumina production guidance: 4.0–4.1 MnT.

• Power and metals segments progressing on expansion projects, with commissioning timelines outlined.

• Vedanta Resources targets further debt reduction to $3 billion over two years, with dividend yields modeled at 3%–5% of market cap.

• Focus remains on integrating acquired assets and optimizing operational performance post-demerger.