Vedanta (VEDL) Q1 25/26 earnings summary

Executive summary

• Achieved record first quarter performance with EBITDA of ₹10,746 crore (up 5% YoY) and revenue of ₹37,824 crore (up 6% YoY), despite global uncertainty and commodity price declines.

• Adjusted PAT rose 13% YoY to ₹5,000 crore; reported PAT at ₹4,457 crore after one-off items.

• Declared interim dividend of ₹7 per share for Q1 FY26; strong liquidity with cash and equivalents at ₹22,137 crore, up 33% YoY.

• Net debt/EBITDA improved to 1.3x from 1.5x YoY; interest cost reduced to 9.2%.

• Unaudited consolidated and standalone Q1 FY26 results approved with unmodified auditor opinion and no material misstatements.

Financial highlights

• Revenue reached ₹37,824 crore, up from ₹35,764 crore in Q1 FY25; EBITDA at ₹10,746 crore, highest ever for Q1.

• Adjusted PAT at ₹5,000 crore, reported PAT at ₹4,457 crore; basic EPS (consolidated) at ₹8.15.

• Free cash flow (pre-capex) at ₹4,272 crore; ROCE improved by 87 bps YoY to ~25%.

• Net debt reduced to ₹58,220 crore as of June 30, 2025; net debt/EBITDA at 1.3x.

• Dividend of ₹7/share declared; all NCD proceeds used as intended for corporate purposes, debt repayment, and capex.

Outlook and guidance

• Confident in achieving FY26 guidance, with volume growth and margin expansion expected across key segments.

• Aluminium production guidance at 2.5–2.6 Mnt, alumina 3.0–3.1 Mnt, COP $1,700–1,750/t.

• Oil & Gas production guided at 95,000–100,000 BOEPD for FY26, opex $15–16/boe.

• Power business to add 1,300 MW new capacity in Q2; further ramp-up in merchant power sales anticipated.

• Pending regulatory and other approvals, no adjustments made for proposed demerger; hearings scheduled for August 2025.