Vedanta Aluminium’s profit surges three-fold in June quarter on record revenue

Mumbai: Vedanta Aluminium Metal posted a more than threefold surge in consolidated net profit from a year earlier in the June quarter at Rs 6,597 crore, aided by strong revenue growth and profitability. The newly demerged company also announced an interim dividend of Rs 8 per share.

This is the first quarterly earnings since the company's demerger in June. Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel listed as independent entities in June, following the demerger from listed holding company Vedanta Ltd.

Vedanta Aluminium Metal’s consolidated revenue climbed 45% year-on-year in the June quarter to an all-time high of Rs 21,105 crore, thanks to volume growth and higher prices. Aluminium prices rose 46% compared to the previous year.


Earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled to a record Rs 10,499 crore, boosted by cost efficiencies, the company said in a statement.

Vedanta Aluminium’s cost of production for the quarter fell 4% on-year and 3% sequentially to $1,698 per tonne. For the current fiscal year, the company anticipates cost of production in the range of $1,650 to $1,700 per tonne.

The EBITDA made on each tonne of aluminium, meanwhile, rose to $1,804 per tonne, an all-time high. As a result, EBITDA margins for the quarter surged by nearly 19 percentage points to 50% from 31% a year ago.

“We have commenced our new, independent chapter with robust operational and financial performance in this quarter, reflecting the success of our approach which merges business resilience, disciplined execution, and a long-term vision,” said Rajesh Kumar, chief executive at Vedanta Aluminium.

The company’s aluminium production for the quarter rose 5% last quarter to 632,000 tonnes, an all-time high, while production of value-added products rose 14% to 389,000 tonnes, also a fresh high.

Alumina production surged 41% to 826,000 tonnes last quarter. The company guided for an output of 2.6—2.7 million tonnes of aluminium in FY27, while alumina is likely in the range of 4.0—4.1 million tonnes.

Vedanta Aluminium Metal will be commissioning its Kuraloi coal mine this quarter, and Sijimali bauxite mine and Ghogharpalli coal mine in the second half of the fiscal. It also plans to complete value-added projects this year.