Vedanta Q2 profit drops 13% to ₹5,026 cr; posts record revenue and EBITDA, declares ₹16 dividend

The drop in profit came after the company booked exceptional losses totalling ₹2,067 crore during the quarter.

According to a regulatory filing dated October 31, the exceptional charges comprised a ₹1,407 crore write-off following an adverse Supreme Court ruling on the Mega Power benefit claim, and a ₹660 crore settlement payment to SEPCO for resolving arbitration disputes related to the Talwandi Sabo power plant.

Vedanta Limited reported a 13% year-on-year rise in profit after tax (before exceptional items) to ₹5,026 crore for the September quarter (Q2FY26), driven by strong operational performance across metals, mining, and energy segments.

The company achieved its highest-ever second-quarter revenue of ₹39,218 crore, up 6% YoY, and a record EBITDA of ₹11,612 crore, up 12% YoY, with the EBITDA margin improving by 69 basis points to 34%.

Vedanta’s Return on Capital Employed (ROCE) rose 347 bps YoY to 26%, while its Net Debt-to-EBITDA ratio improved to 1.37x from 1.49x, supported by cash and equivalents of ₹21,481 crore.

The company declared a ₹16 per share dividend during the quarter, and its credit ratings were reaffirmed at AA by both CRISIL and ICRA.

Operationally, Vedanta recorded its best-ever production in several businesses: alumina output surged 31% YoY to 653 kt, cast metal aluminium production reached 617 kt, and zinc mined metal output rose 1% YoY to 258 kt — the highest in any second quarter.

The Lanjigarh alumina refinery began producing from its expansion project, while BALCO produced first metal from India’s largest 525 kA smelter.

The company also expanded its power capacity by 1.3 GW through Meenakshi Energy and Athena Power and reported a 38% rise in international zinc output to 60 kt. The Iron Ore, Steel, and Copper businesses registered strong growth, with iron ore production up 48% YoY, pig iron production up 26%, and ore output at FACOR up 23%.

Commenting on the results, Arun Misra, Executive Director, Vedanta, said, “Our H1 FY26 performance reflects Vedanta’s resilience… Supported by increased production capacity and recovery in commodity prices, Vedanta is well positioned to deliver its best performance in FY26, with full-year EBITDA surpassing the historic best of ~USD 6bn delivered in FY22.”

Ajay Goel, CFO, added, “We achieved our record second quarter EBITDA of ₹11,612 crore, reflecting 12% YoY growth with margin expanding to 34%. Our Net Debt to EBITDA ratio stands at 1.37x, improving from 1.49x last year. The reaffirmation in credit rating at AA by both Crisil and ICRA highlights our financial strength and markets’ confidence in Vedanta’s growth story.”