Vedanta (VEDL) Q2 25/26 earnings summary

Executive summary

• Achieved record first-half and second-quarter revenue and EBITDA, with Q2 revenue at ₹39,218 crore (+6% YoY) and EBITDA at ₹11,612 crore (+12% YoY), despite global volatility and commodity price swings.

• PAT before exceptional items rose 13% YoY to ₹5,027 crore in Q2; reported PAT at ₹3,479 crore, impacted by exceptional losses.

• Strategic focus on capacity expansion, sustainability, and transformation into a leader in critical minerals and energy transition.

• Major project milestones included commissioning of BALCO’s 525 kA smelter and Lanjigarh’s Train-II alumina production.

• Second interim dividend of ₹16 per share declared, bringing total FY2025-26 dividend to ₹23 per share.

Financial highlights

• Q2 revenue reached ₹39,218 crore, up 6% YoY; H1 revenue at ₹76,652 crore, up 6% YoY.

• Q2 EBITDA at ₹11,612 crore, up 12% YoY; H1 EBITDA at ₹22,358 crore, up 8% YoY.

• Q2 PAT before exceptional items at ₹5,027 crore; reported PAT at ₹3,479 crore, impacted by exceptional losses.

• EBITDA margin expanded to 34%, up 69 bps YoY.

• Net debt/EBITDA improved to 1.37x from 1.49x YoY; cash & equivalents at ₹21,481 crore.

Outlook and guidance

• Confident in achieving annual EBITDA of over $6 billion in FY26, surpassing previous records.

• FY26 guidance: Aluminium production 3.0–3.1 Mnt, alumina 2.5–2.6 Mnt, zinc mined metal 1,115–1,135 kt, oil & gas 90–95 kboepd.

• Aluminium CoP guided at $1,700–$1,750/t; Zinc India CoP at ~$1,000/t.

• Alumina cost expected to decline by $50 per ton in each of the next two quarters, reaching $700–$710 per ton by year-end.

• Multiple growth projects and mine expansions on track, with key milestones expected in FY26 and FY27.