Vedanta Iron and Steel (VISL) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 marks the first reporting period post-demerger, with all five Vedanta entities reporting strong operational and financial performance.

• Q1 FY27 saw revenue rise 18% year-over-year to ₹3,662 crore, with EBITDA up 54% to ₹515 crore and PAT at ₹121 crore, reversing a loss in Q1 FY26.

• Unaudited standalone results for the quarter ended June 30, 2026, were reviewed and approved by the Board and Audit Committee on July 29, 2026.

• The company completed a demerger, acquiring the Iron Ore Undertaking from Vedanta Limited effective May 1, 2026, and listed its shares on BSE and NSE on June 15, 2026.

• Significant deleveraging and refinancing at Vedanta Resources, with group net debt reduced and robust free cash flows supporting growth and shareholder returns.

Financial highlights

• Vedanta Iron & Steel: Revenue at INR 3,662 crores (+18% YoY), EBITDA at INR 515 crores (+54% YoY), PAT at INR 121 crores, margin improved to 14%.

• Revenue from operations for Q1 FY27 was ₹1,488 crore, up from ₹1,290 crore in Q1 FY26.

• Net external debt reduced to ₹1,773 crore from ₹2,862 crore sequentially; Net Debt/EBITDA at 1.3x.

• Finance cost reduced by 55% YoY due to settlement of inter-company payables post-demerger.

• Basic and diluted EPS for Q1 FY27 was ₹0.47, compared to ₹0.57 in Q1 FY26.

Outlook and guidance

• Indian steel production projected to grow at 8.7% CAGR, with per capita consumption well below global average, indicating robust demand ahead.

• Policy support, infrastructure expansion, and green steel investments expected to drive industry growth.

• Aluminium cost guidance maintained at $1,650–$1,700/tonne for FY 2027; Q2 cost expected marginally higher due to planned shutdowns.

• Group CapEx for FY 2027 guided at INR 20,000 crores across entities, with continued focus on growth and deleveraging.

• Comparative figures have been restated to reflect the demerger and MetCoke acquisition as if effective from April 1, 2025.