Vedanta Oil & Gas FY26 Results: Revenue Rises 29%

Vedanta Oil & Gas reported revenue of ₹51,524 crore for FY26, up 29% year-on-year, according to the business highlights provided with Vedanta Limited's fourth-quarter FY26 investor presentation. EBITDA stood at ₹18,447 crore, up 59% year-on-year, while profit after tax was ₹9,352 crore, up 89% year-on-year. The financial growth came alongside a decline in production, underlining the importance of price, cost and operating mix for the oil and gas business. Average daily gross operated production for the full year fell to 87.2 thousand barrels of oil equivalent per day, or kboepd, from 103.2 kboepd in FY25. The presentation identified natural decline as the primary factor affecting production.

FY26 financial performance

The reported FY26 revenue of ₹51,524 crore marked a 29% increase from the previous year. EBITDA of ₹18,447 crore increased 59% year-on-year, exceeding the rate of revenue growth. PAT rose 89% year-on-year to ₹9,352 crore. These figures were presented as FY26 highlights for Vedanta Oil & Gas. The supplied information does not provide a separate oil and gas segment revenue reconciliation or a realised crude-price figure. It also does not provide a standalone comparison of capital expenditure or free cash flow for FY26.

Production declined in the fourth quarter

Fourth-quarter FY26 average daily gross operated production was 81.5 kboepd, compared with 96.2 kboepd in the corresponding quarter of FY25. This represented a 15% year-on-year decline. Production was also below the 84.9 kboepd reported in the third quarter of FY26. Vedanta attributed the fourth-quarter movement primarily to natural decline. Operating expenditure in the quarter was 8% higher sequentially, primarily because lower production volumes increased the cost burden per unit of output.

Rajasthan remained the largest producing area

Rajasthan accounted for 67.1 kboepd of fourth-quarter FY26 production, down from 78.0 kboepd a year earlier. Its FY26 average production was 70.4 kboepd, compared with 84.3 kboepd in FY25. Ravva produced 7.4 kboepd in the fourth quarter and 8.1 kboepd for the full year. Cambay production was 3.8 kboepd in the quarter, down from 6.2 kboepd in the prior-year quarter, while its FY26 average was 5.3 kboepd. The data show that the fall in Rajasthan was the largest contributor to the overall annual decline.

Key operating data

Development activity across producing assets

Vedanta Oil & Gas said 12 wells were brought online across Bhagyam, Aishwariya, RDG, Saraswati and Mangala ASP. These assets form part of the company's efforts to manage natural decline in its producing portfolio. The presentation also referred to an ongoing deep-gas drilling campaign, with three wells drilled. No production contribution from those three wells was specified in the supplied material. The company also reported a gas discovery in the Ambe block in Western Offshore, where expected reserve and resource additions were estimated at about 13 million barrels of oil equivalent.

Resource base and production ambition

In its August 2026 investor presentation, Vedanta Oil & Gas described itself as India's largest private-sector producer of crude oil. It reported a reserves and resources base of 1,321 million barrels of oil equivalent and resource potential of 2,900 million barrels of oil equivalent. The company said it aims to grow gross production to more than 150 kboepd by FY29. Its identified drivers include decline management, high-impact tight oil, Northeast Offshore developments and deep gas. The presentation listed FY27 estimated production of 100 kboepd, followed by 134 kboepd in FY28 and 150 kboepd in FY29.

Context from the earlier business plan

Vedanta's oil and gas operations have been associated with Cairn Oil & Gas and include onshore and offshore exploration and production assets. A September 2023 Vedanta disclosure said the oil and gas business accounted for more than one-quarter of India's domestic crude oil production at that time. It also stated that the business had acreage of 65,000 square kilometres and gross 2P and 2C resources exceeding 1.1 billion barrels of oil equivalent. The same disclosure outlined a proposed group structure that included Vedanta Oil & Gas as one of six separately listed companies. It named Steve Moore as the person who would run Vedanta Oil & Gas.

Implications for investors and the sector

The FY26 figures show a contrast between higher reported financial metrics and lower operated production. For investors, the production decline and the 8% sequential increase in fourth-quarter operating expenditure are relevant operating indicators, particularly for a business seeking to raise output materially by FY29. The well additions, deep-gas campaign and Ambe discovery point to the projects identified to support that plan, but the supplied disclosures do not state their expected individual production schedules. For the wider sector, Vedanta's stated focus aligns with India's policy objective of reducing import dependence. The company has said it aspires to contribute more than 50% of India's domestic oil production, though this remains a stated vision rather than a reported outcome.

Latest investor communications

Vedanta Oil & Gas informed the exchange about an investor presentation on August 5, 2026. Its results and reports page also listed a Vedanta Oil & Gas investor presentation dated May 21, 2026 for FY27. The August presentation projected EBITDA of $656 million for FY27, $939 million for FY28 and $961 million for FY29. It assumed Brent crude prices of $85 per barrel for FY27 and $75 per barrel for each of FY28 and FY29. These are presentation estimates and assumptions, not FY26 reported results.

Conclusion

Vedanta Oil & Gas closed FY26 with reported revenue growth of 29%, EBITDA growth of 59% and PAT growth of 89%, even as average daily gross operated production fell 16%. The immediate operating focus remains managing decline while progressing new wells, deep-gas drilling and offshore development opportunities. Investors will have further reference points in subsequent company filings and investor presentations as the business works toward its stated FY29 production target.