Vedanta (VEDL) Q2 25/26 earnings summary

Executive summary

• Achieved record first-half and second-quarter revenue and EBITDA, with Q2 revenue at ₹39,868 crore and EBITDA at ₹11,612 crore, despite global volatility and commodity price swings; strong operational discipline and cost efficiency across segments.

• PAT before exceptional items rose 13% YoY to ₹5,027 crore in Q2; reported PAT at ₹3,479 crore, impacted by exceptional losses mainly due to asset write-offs and settlements in the power segment.

• Declared a second interim dividend of ₹16 per share, bringing the total dividend for FY2025-26 to ₹23 per share; HZL added to Nifty Next 50 Index.

• Major project milestones included commissioning of BALCO’s 525 kA smelter, Lanjigarh’s Train-II alumina production, and progress on Gamsberg Phase Two expansion.

• Unaudited consolidated and standalone financial results for Q2 and H1 FY2025-26 were approved, with auditor review reports issued without modifications.

Financial highlights

• Q2 revenue reached ₹39,868 crore (consolidated), 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 items of ₹2,067 crore.

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

• Free cash flow (pre-capex) for Q2 at ₹4,895 crore.

Outlook and guidance

• Confident in surpassing previous record EBITDA of $6 billion for FY26, driven by capacity expansion and production growth.

• 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 hot metal cost guided below $1,650 per ton in H2; power cost expected to be sub-$500 per ton.

• CapEx guidance for FY26 maintained at $1.7–$1.9 billion, with $0.9 billion invested in H1.

• Management expects no adjustments related to short seller allegations or pending regulatory approvals on demerger and Cambay Block PSC extension.