Metals thrust, strong growth engines power Vedanta's stellar July-September

Vedanta Ltd delivered its strongest quarterly financial performance in the September quarter, with record revenue, earnings and profit reflecting robust operating performance across its businesses, earnings numbers released on October 28 showed.

The metals-to-oil conglomerate's profit in Q2 was boosted by higher base metal prices. Vedanta attributed its robust Q2 show to higher commodity prices and favourable foreign exchange movements, among other things.

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A reduction in debt help Vedanta strengthen its balance sheet during the quarter. Q2 cash generation helped it cut net debt by Rs 4,624 crore during the quarter to Rs 3,675 crore at the end of September, compared with Rs 8,299 crore in June 2026.

The net debt-to-EBITDA ratio improved to 0.1 times from 0.3 times in Q1 FY27.

Free cash flow before capital expenditure stood at Rs 5,803 crore in Q2 FY27, compared with Rs 4,412 crore in the preceding quarter. Cumulative first-half free cash flow before capex reached Rs 10,215 crore.

The company invested Rs 1,135 crore in growth capital expenditure during the September quarter, taking the first-half total to Rs 2,283 crore. Cash and cash equivalents increased to Rs 26,622 crore from Rs 19,992 crore at the end of Q1 FY27.

Vedanta Ltd's overall borrowing cost remained at about 8.3% a year. Both ICRA and CRISIL reaffirmed the company's credit rating at AA+/Stable. During the first half of FY27, Vedanta Resources Ltd (VRL) secured $2.15 billion through international bonds at an average coupon rate of 7.4% and an average maturity of 7.6 years. It also tied up $1.85 billion in syndicated term loans at SOFR plus 265 basis points, with an average maturity of three years.

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VRL's credit ratings reached a decade high, with S&P and Fitch Ratings assigning BB/Stable and Moody's assigning Ba3/Positive. Vedanta Ltd also declared its first interim dividend of Rs 5 per share.

Vedanta Ltd Q2 revenue and EBITDA

The company's revenue rose 57% year-on-year and 10% sequentially to an all-time high of Rs 25,812 crore in Q2, while profit after tax (PAT) surged 151% from a year earlier to Rs 6,202 crore.

Earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled, climbing 106% year-on-year and 17% quarter-on-quarter to a record Rs 9,938 crore. The EBITDA margin expanded by 1,055 basis points year-on-year and 293 basis points sequentially to 60%.

The strong quarterly performance lifted the company's first-half revenue to a record Rs 49,268 crore, up 54% year-on-year. EBITDA for the six months ended September stood at Rs 18,407 crore, an increase of 103%, while PAT rose 151% to an all-time high of Rs 11,496 crore.

Zinc, other businesses see operating milestones

Zinc India recorded its highest-ever quarterly mined metal production at 271 kilotonnes (kt), up 5% year-on-year. First-half production rose 3% to a record 539 kt. Silver output increased 20% to 173 tonnes in Q2 and 10% to 321 tonnes in H1 FY27.

The zinc cost of production reached its lowest level since the transition to underground mining, at $703 per tonne, down 29% year-on-year and 17% sequentially.

Zinc International produced 53 kt of mined metal in Q2, down 12% year-on-year but up 9% quarter-on-quarter. First-half production fell 13% to 102 kt. The commissioning of Gamsberg Phase II during Q2 FY27 added 200 ktpa of metal-in-concentrate capacity, taking total Zinc International capacity to 500 ktpa.

Copper India sales increased 16% year-on-year to 52 kt in Q2, while first-half sales rose 9% to 105 kt. Copper International sales declined 74% year-on-year and 43% sequentially to 6 kt in Q2, with first-half sales falling 64% to 16 kt, impacted by the closure of the Strait of Hormuz. The 155 ktpa copper rod plant in Saudi Arabia is progressing towards commissioning in Q3 FY27.

FACOR achieved record quarterly ore production of 50 kt, up 6% year-on-year, and record first-half output of 202 kt, up 31%. Ferrochrome production rose 26% to 24 kt in Q2 and 13% to 53 kt in H1. The business also successfully extracted underground ore from the Ostapal Mines to strengthen ore supply security.

At the Vizag General Cargo Berth, quarterly dispatch volumes reached a record 1.74 million metric tonnes (MMT), up 26% year-on-year, while first-half volumes rose 18% to 3.39 MMT. Discharge volumes increased 22% to 1.83 MMT in Q2 and 32% to 4.19 MMT in H1.

Record mining, strong engines drive growth

Arun Misra, executive director of Vedanta Ltd, said the company had sustained strong operating performance, including record first-half mined metal production at Zinc India for the sixth consecutive year and record first-half refined metal production.

He also highlighted the commissioning of Gamsberg Phase II, record chrome ore production and 100% ore procurement at FACOR, and the highest quarterly cathode production at Copper India.

Misra said the growth investment was advancing capacity expansion, mine development and resource security initiatives across the portfolio.

Ajay Goel, group chief financial officer of Vedanta, said the record financial results and strong cash generation had enabled further debt reduction.

Goel added that the company's businesses across Hindustan Zinc, Zinc International, FACOR, Copper and Ports, alongside its portfolio of critical mineral blocks, positioned it for further growth while maintaining financial discipline and creating long-term value.