Vedanta (VEDL) Q3 25/26 earnings summary

Executive summary

• Achieved record quarterly EBITDA of INR 15,171 crore, lifetime high revenue of INR 45,899 crore, and PAT of INR 7,807 crore in Q3 FY26, with EBITDA margin at a historic 41%, up 629 bps year-over-year.

• NCLT approved the demerger; major capital projects commissioned, including new refinery train, aluminum smelter, pellet line, zinc roaster, and power capacity additions.

• Operational milestones included best-ever alumina and aluminum production, lowest hot metal and zinc production costs in years, and record outputs across zinc, power, and steel segments.

• Strong ESG performance, with improved safety metrics, top global sustainability rankings, and significant CSR investments impacting over 5.5 million lives.

• Total Shareholder Return at -30% for the quarter; 5-year TSR at 428% with a cumulative dividend yield of 73.5%.

Financial highlights

• Quarterly revenue up 19% year-over-year to INR 45,899 crore; EBITDA up 34% to INR 15,171 crore; PAT up 60% to INR 7,807 crore; EBITDA margin at 41%, up 629 bps year-over-year.

• Nine-month revenue exceeded INR 120,000 crore, up 10% year-over-year; nine-month EBITDA at INR 37,529 crore, up 18%.

• Free cash flow (pre-capex) for Q3 FY26 at ₹4,916 crore, up 27% YoY.

• Net debt at INR 60,624 crore; cash and equivalents at INR 20,085 crore; net debt/EBITDA improved to 1.23x from 1.4x.

• Cost of borrowings reduced to below 9% in Q3; interest cost down 160 bps YoY; average debt maturity ~4.5 years.

Outlook and guidance

• On track to deliver lifetime high annual EBITDA of over $6 billion in FY26, surpassing previous guidance.

• Q4 performance expected to exceed Q3; targeting further volume and cost improvements in FY27 with new project ramp-ups.

• Deleveraging target of $0.8–$1 billion across the group in the current fiscal; net debt/EBITDA at India level expected to close at 1x.

• Power capacity to reach 4.8–5 GW by H1 next year, with long-term plans for 10–12 GW.

• Oil and gas production expected to stabilize and grow to 90,000 boepd next year, with a long-term target of 150,000 boepd.