Vedanta (VEDL) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked a record year with all-time highs in revenue, EBITDA, and PAT, driven by volume growth, cost reductions, and operational excellence across business segments.

• The company is undergoing a major demerger, creating five independent, sector-specific companies, effective May 1, 2026, with trading expected by mid-June and NCLT approval secured.

• Dividend of ₹34 per share declared for FY26, with total shareholder return of nearly 49%, outperforming the Nifty Metal Index by 2.1x.

• Safety performance improved, with a 26% reduction in lost time injury frequency rate and a 16% drop in lost time injuries year-over-year, though a tragic incident at the Athena Power Plant resulted in fatalities and injuries.

• Major growth capex of ₹14,918 crore invested in FY26, supporting expansion across aluminium, zinc, oil & gas, and power segments.

Financial highlights

• Annual revenue reached ₹1,77,194 crore in FY26, up 15% year-over-year; EBITDA rose 29% to ₹55,976 crore; PAT increased 22% to ₹25,096 crore.

• Q4FY26 revenue was ₹51,524 crore (+29% YoY); EBITDA ₹18,447 crore (+59% YoY); PAT ₹9,352 crore (+89% YoY).

• Free cash flow (pre-capex) at ₹11,930 crore (+53% YoY); cash & cash equivalents at ₹28,485 crore.

• ROCE at ~32%, up 539 bps YoY; EBITDA margin at 44%, up 915 bps YoY.

• Earnings per share (basic) for continuing and discontinued operations was ₹44.58 in FY26, up from ₹38.97 in FY25.

Outlook and guidance

• Gamsberg phase II (Zinc International) is over 93% complete, with commissioning expected next quarter and ramp-up over 12–18 months.

• FY27 guidance: Aluminium production 2.6–2.7 Mnt, COP $1,650–1,700/t; Zinc India mined metal 1,140–1,160 kt, COP $975–1,000/t.

• Copper business margin expected to improve from 1% to at least 5% in FY27.

• Power segment guidance for Athena PLF withheld pending assessment after the incident; management expects no material financial impact.

• Management expects the demerger to unlock value and enhance focus for each business segment.