Vedanta Aluminium Metal (VAML) Q2 26/27 earnings summary

Executive summary

• Record Q2 aluminium output of 649 KT and alumina output of 895 KT supported strong earnings; revenue was ₹22,066 crore and EBITDA ₹10,192 crore on the operating-results basis.

• Q2 PAT was ₹6,187 crore; net debt fell ₹3,090 crore QoQ to ₹26,442 crore, with net debt/EBITDA at 0.7x.

• H1 aluminium production reached a record 1,281 KT; H1 EBITDA was ₹20,691 crore and PAT ₹12,784 crore.

• Operational expansion, captive raw materials and cost reductions remain priorities; management targets a $5 billion exit EBITDA run rate at current LME, planned VAP and expected cost levels.

Financial highlights

• Operating-results revenue was ₹22,066 crore (+41% YoY, +5% QoQ) and EBITDA ₹10,192 crore (+83% YoY, -3% QoQ); EBITDA margin was ~46%.

• Consolidated revenue from operations was ₹22,324 crore; consolidated EBITDA was ₹10,062 crore.

• Q2 PAT was ₹6,187 crore (+105% YoY); PAT before exceptional items was ₹6,550 crore, with net exceptional items after tax of ₹363 crore.

• H1 revenue from operations was ₹43,717 crore, EBITDA ₹20,691 crore and PAT ₹12,784 crore.

• Hot metal cost was $1,722/t, down 6% YoY and up 1% QoQ; carbon and fuel-oil inflation offset structural alumina-cost benefits.

Outlook and guidance

• FY27 production guidance: alumina 4.0–4.1 MnT and aluminium 2.6–2.7 MnT; hot metal cost guidance $1,650–$1,700/t.

• Q3 alumina output target is 1,000+ KT; domestic bauxite mix target is 90%+ by year-end, versus 37% in Q2.

• H2 hot metal cost is expected near H1’s ~$1,710/t level or slightly lower; Q3 cost may rise ~4% QoQ, while planned reductions total ~$100/t by year-end.

• Longer-term initiatives target ~$200/t cost reduction, more than 90% VAP mix and ~$1,550/t hot metal cost after project completion and debottlenecking.

• FY27 milestones include BALCO Potline 3 at 435 KTPA by March exit, refinery at designed capacity, and Sijimali, Kuraloi and Ghogharpalli mine commissioning milestones.