Vedanta Iron and Steel (VISL) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was ₹2,788 crore, down 2% YoY; EBITDA rose 56% to ₹83 crore, while continuing-operations loss after tax was ₹324 crore versus ₹494 crore.

• H1 revenue was ₹6,450 crore, up 8% YoY; EBITDA rose 54% to ₹598 crore. Consolidated PAT loss narrowed to ₹203 crore from ₹622 crore; continuing-operations loss was ₹213 crore versus ₹661 crore.

• H1 steel volumes grew YoY, while iron ore output and sales weakened; Karnataka dispatch disruptions weighed on mine volumes.

Financial highlights

• Q2 EBITDA margin was 3%, up 112 bps YoY; H1 margin was 9%, up 275 bps YoY.

• Q2 and H1 PAT included a ₹37 crore exceptional charge in each period.

• Q2 finance cost fell 60% YoY and 17% QoQ; H1 finance cost fell 58% YoY.

Segment performance

• Steel H1 saleable production was 1,114 KT, up 4% YoY; sales were 1,104 KT, up 3%. Pig iron production reached a record 568 KT, up 4%.

• Steel H1 revenue rose 17% to ₹5,327 crore; EBITDA increased to ₹409 crore from ₹134 crore, with margin of ₹3,709 per tonne.

• Iron ore H1 saleable production was 4.2 Mn DMT, down 3% YoY; sales declined, with Karnataka dispatches affected by post-demerger name-transfer procedures until September.

• Iron ore H1 revenue was ₹1,027 crore, down 19%, and EBITDA was ₹189 crore, down 26%; Q2 EBITDA was ₹10 crore versus ₹113 crore.

• Q2 IOG production rose 22% YoY and Odisha saleable ore production rose 34%.