Vedanta Reports a Q1 Earnings Spike of $584 Million, Amidst a 10% Growth, Despite Financial Market Instability
In a significant development, Vedanta Limited, a leading Indian conglomerate specialising in critical minerals, transition metals, energy, and technology, has announced its financial results for the first quarter of FY26. The company reported a robust performance across various key indicators, setting a strong foundation for the year ahead.
Record-Breaking Production and EBITDA
Vedanta's international zinc operations saw a 50% year-on-year (YoY) jump in mined metal production in Q1 2025. This impressive growth was matched by the company's alumina division, which achieved a record quarterly production of 587 KT, representing a 9% YoY increase.
The company also reported the highest ever first quarter EBITDA of $1.3 billion, a 2% YoY increase. Vedanta's adjusted Profit After Tax (PAT) for Q1 2025 increased by 10% YoY to $584 million.
Cost Efficiency and Capital Efficiency Improvements
The overall aluminum cost of production for Vedanta decreased by 12% quarter-on-quarter (QoQ) in Q1 2025. The cost of production for Vedanta's zinc operations in India was the lowest in Q1 2025 at US$1,010/t. The company also recorded the lowest hot metal cost (ex-alumina) in the last 16 quarters at $888/t in Q1 2025.
Vedanta's Return on Capital Employed (ROCE) improved by 87 basis points (bps) YoY to 25%, indicating better capital efficiency for the company in Q1 FY26.
Revenue and PAT Performance
Vedanta's consolidated revenue for Q1 2025 was $4.4 billion, up 4% YoY. The company's Profit Before Tax reported a significant 51.6% increase QoQ but only a modest 2.1% increase YoY.
The PAT figures show some variation depending on consolidated versus adjusted reporting. One source notes a consolidated PAT decline of 11.7% YoY to ₹3,185 crore, while another notes PAT at ₹4,457 crore (down 12.5% YoY but up sequentially). The difference likely reflects consolidated versus standalone or adjusted figures.
Liquidity Position and Dividend Declaration
Vedanta's liquidity position strengthened with cash and equivalents of about $2.6 billion, up 29% YoY. The company also declared an interim dividend of ₹7 per equity share for FY26 Q1.
CRISIL and ICRA Ratings Reaffirmed
Credit rating agencies CRISIL and ICRA have reaffirmed Vedanta's credit ratings at AA, reflecting the company's strong financial position.
Expansion and Commissioning of Power Capacity
Vedanta recently commissioned 950 MW of merchant power capacity in its thermal power plants in Chhattisgarh and Andhra Pradesh.
These figures reflect strong revenue growth and robust EBITDA performance, while PAT shows some variation depending on consolidated versus adjusted reporting. The improvement in ROCE indicates better capital efficiency for Vedanta in Q1 FY26.
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The strong financial performance of Vedanta Limited, as reported in Q1 FY26, includes a record-breaking first quarter EBITDA of $1.3 billion and a 50% year-on-year jump in mined metal production in the international zinc operations. This indicates a robust performance in the realm of investing and business for the Indian conglomerate.
The company's cost efficiency also improved, with a 12% quarter-on-quarter decrease in the overall aluminum cost of production in Q1 2025. This cost efficiency, coupled with the increased revenue and capital efficiency as indicated by the 87 basis points year-on-year improvement in Return on Capital Employed (ROCE), points towards shrewd financial management and smart business strategies.
