Vedanta Posts FY26 Gains With Record Production And Lower Leverage
ECONOMY & POLICY

Vedanta Posts FY26 Gains With Record Production And Lower Leverage

Vedanta reported strong full year and fourth quarter performance driven by record production, margin expansion and strategic project delivery. Group revenue for FY26 rose to Rs 515.24 billion, an increase of 29 per cent year on year, while consolidated EBITDA improved materially and net debt to EBITDA reduced to 0.95x from 1.22x in the prior-year quarter. Rating agencies reaffirmed credit assessments and the group completed growth capital expenditure of Rs 149.18 billion to advance expansions across metals and energy.

Operationally, aluminium and alumina set fresh records with annual aluminium production of 2,456 thousand tonnes (kt) and alumina at 2,916 thousand tonnes (kt), and the business reached an exit run rate of four million tonnes per annum (MTPA). The BALCO smelter expansion and downstream investment yielded first metal from a new 525 kA smelter and the group acquired Incab Industries to strengthen downstream copper and aluminium capabilities. Cost of production for aluminium and zinc improved, delivering five per cent and nine per cent declines respectively year on year, supporting better margins.

Hindustan Zinc and international zinc operations reported higher mined and refined metal output with zinc international led by strong performance at Gamsberg where phase one achieved planned output and phase two was over ninety per cent complete with ramp targeted in the next fiscal year. Silver production contributed to profitability and zinc cost of production reached multi-year lows. Oil and gas delivered stable operated production with a recent offshore gas discovery and ongoing appraisal activity while the company continues to operate contested blocks under status quo orders.

Sustainability and community initiatives expanded with renewable energy consumption of 3.97 billion units and merchant thermal sales of 4,934 million units in the quarter, and CSR spend of Rs 4.19 billion for FY26 supporting millions of beneficiaries. Decarbonisation measures, energy efficiency projects and safety initiatives were rolled out across operations to reduce emissions and water use. The company outlined commissioning schedules for multiple projects including smelter and mine starts, with several items progressing into the coming two fiscal years.

Vedanta reported strong full year and fourth quarter performance driven by record production, margin expansion and strategic project delivery. Group revenue for FY26 rose to Rs 515.24 billion, an increase of 29 per cent year on year, while consolidated EBITDA improved materially and net debt to EBITDA reduced to 0.95x from 1.22x in the prior-year quarter. Rating agencies reaffirmed credit assessments and the group completed growth capital expenditure of Rs 149.18 billion to advance expansions across metals and energy. Operationally, aluminium and alumina set fresh records with annual aluminium production of 2,456 thousand tonnes (kt) and alumina at 2,916 thousand tonnes (kt), and the business reached an exit run rate of four million tonnes per annum (MTPA). The BALCO smelter expansion and downstream investment yielded first metal from a new 525 kA smelter and the group acquired Incab Industries to strengthen downstream copper and aluminium capabilities. Cost of production for aluminium and zinc improved, delivering five per cent and nine per cent declines respectively year on year, supporting better margins. Hindustan Zinc and international zinc operations reported higher mined and refined metal output with zinc international led by strong performance at Gamsberg where phase one achieved planned output and phase two was over ninety per cent complete with ramp targeted in the next fiscal year. Silver production contributed to profitability and zinc cost of production reached multi-year lows. Oil and gas delivered stable operated production with a recent offshore gas discovery and ongoing appraisal activity while the company continues to operate contested blocks under status quo orders. Sustainability and community initiatives expanded with renewable energy consumption of 3.97 billion units and merchant thermal sales of 4,934 million units in the quarter, and CSR spend of Rs 4.19 billion for FY26 supporting millions of beneficiaries. Decarbonisation measures, energy efficiency projects and safety initiatives were rolled out across operations to reduce emissions and water use. The company outlined commissioning schedules for multiple projects including smelter and mine starts, with several items progressing into the coming two fiscal years.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code