Vedanta Limited has delivered a robust start to the financial year 2025-26, showcasing resilience and operational efficiency amid a volatile commodity market. For the quarter ended June 30, 2025, India’s diversified mining conglomerate reported a surge in adjusted profit after tax (PAT) by 13% year-on-year to approximately ₹5,000 crore (about $584 million), even as headline net profit took a hit from one-time charges. This performance signals the company’s ability to sustain growth despite global uncertainties and shifting commodity cycles.
Key Highlights
Adjusted profit after tax stood at ₹5,000 crore, marking a 13% increase year-on-year, after accounting for one-time expenses.
Net profit (after extraordinary items) was ₹3,185 crore, representing a decline of 12% year-on-year due to exceptional costs incurred during the quarter.
Revenue from operations rose by 6% to ₹37,824 crore, compared to ₹35,754 crore in the same quarter last year, supported by higher sales volumes across several business segments.
Earnings before interest, tax, depreciation, and amortization (EBITDA) reached ₹10,746 crore, up 6% year-on-year, reflecting improved operational efficiency and cost controls.
Operational Excellence Across Businesses
Metal and Mining Operations
Vedanta recorded its highest-ever Q1 EBITDA, attributed to rising production volumes and operational efficiencies.
Zinc International’s mined metal production hit 38 kilotonnes, up 13% sequentially.
India operations saw iron ore output climb 42% year-on-year, while pig iron production increased 4%.
The company reported the lowest hot metal cost (excluding alumina) in the past 16 quarters, and the lowest-ever Q1 cost of production in Zinc India.
Energy and Power
Average daily gross operated oil and gas production stood at 112.4 kboepd, supported by new wells in the Mangala and RDG fields.
Power segment registered a 33% quarter-on-quarter increase in sales, buoyed by greater demand and operational ramp-ups.
Financial Position and Dividend
Net debt-to-EBITDA ratio improved to 1.5x versus 1.9x, underlining Vedanta’s ongoing deleveraging efforts.
The board announced an interim dividend of ₹7 per share, reinforcing its commitment to shareholders.
Management Commentary
Chairman Anil Agarwal highlighted the significance of Vedanta’s Q1 performance in setting a strong base for the year. He emphasized that the results reflect the culmination of strategic cost initiatives, improved efficiencies, and prudent capital management amid challenging global headwinds. Agarwal noted the record EBITDA achievement and praised the company’s operational teams for delivering solid growth across multiple verticals despite market volatility.
Strategic Developments and Outlook
The company confirmed that its much-anticipated demerger is on track, with the legal scheme filed with the National Company Law Tribunal (NCLT).
Vedanta’s multi-segment approach, especially its ability to ramp up output and cut costs, positions it for further stability and growth.
Brokerage analysts remain optimistic regarding future earnings, citing the completion of key projects and continued focus on volume growth and deleveraging.
Conclusion
Vedanta’s Q1 2025-26 results paint a picture of a company adept at weathering sectoral challenges through operational excellence, aggressive cost management, and a focus on shareholder value. The 13% growth in adjusted profit and record Q1 EBITDA stand out, especially against the backdrop of sector-wide uncertainty. All eyes will remain on the company’s delivery in subsequent quarters as it charts its path toward sustained profitability and corporate restructuring.
Source: Moneycontrol, Rediff, Angel One, Economic Times Markets, Vedanta Company Release
