Vedanta Oil & Gas Q2 FY27 Profit Hits ₹746 Crore

Vedanta Oil & Gas reported a consolidated net profit of ₹746 crore for the quarter ended September 2026, reversing a net loss of ₹92 crore in the corresponding quarter a year earlier. The result came despite a 19% year-on-year decline in oil and gas production. Higher oil price realisations and cost optimisation supported earnings during the quarter.

Profit Reverses From Year-Ago Loss

The company’s Q2 FY27 profit marked a sharp improvement from the loss recorded in Q2 FY26. Vedanta Oil & Gas said focused production optimisation measures aided the quarterly performance. The reported profit was also lower than the preceding quarter on a sequential basis, according to the financial data provided. The key factor behind the year-on-year turnaround was stronger price realisation rather than higher volumes.

Total Income Rises 3% Year on Year

Total income stood at ₹2,628 crore in Q2 FY27, compared with ₹2,544 crore in the corresponding period of the previous financial year. It was lower than ₹2,658 crore reported in Q1 FY27. Revenue from operations was reported at about ₹2,486 crore for the September quarter, up 7% year on year and marginally lower sequentially. The difference between total income and revenue from operations reflects the separate presentation of income items in the company’s financial disclosures.

Higher Oil Prices Support Earnings

Average price realisation rose 40% year on year to about $97 per barrel of oil equivalent in the quarter, from $69.1 per barrel a year earlier. This improvement helped the company offset the impact of lower production. Vedanta Oil & Gas said its Q2 FY27 EBITDA rose 34% year on year to ₹1,393 crore. The reported operating margin was 54.3%, indicating stronger operating leverage during the period.

Production Drops 19% in September Quarter

Total gross oil and gas production declined to 6.6 million barrels of oil equivalent, or mboe, from 8.2 mboe in Q2 FY26. Average daily gross operated production was 72.2 thousand barrels of oil equivalent per day, or kboepd. Average daily working interest production stood at 47.8 kboepd. Total working interest production for the quarter was 4.4 million boe.

Key Q2 FY27 Financial and Operating Data

Sequential Revenue Movement Remains Modest

Revenue from core operations was broadly stable quarter on quarter. It slipped by less than 1% from about ₹2,507 crore in Q1 FY27 to ₹2,488 crore in Q2 FY27, based on the company’s consolidated filings. However, operating profit improved sequentially, with EBITDA reported at ₹1,351 crore in one set of quarterly financial data versus ₹814 crore in the June quarter. This points to a substantially better margin outcome even as revenue remained nearly flat.

First-Half Performance Shows Revenue Growth

For the first half of FY27, Vedanta Oil & Gas reported revenue of ₹4,993 crore, an 8% increase from the year-earlier period. EBITDA for the six months rose 14% to ₹2,625 crore. Profit after tax from continuing operations stood at ₹594 crore in H1 FY27. These figures show that stronger realisations and operating controls supported the first-half financial performance.

Rajasthan Discoveries Add Exploration Context

The company notified three discoveries during the first half of FY27 in its Rajasthan block. The discoveries include deep-gas and shallow-oil prospects in previously unexplored reservoir intervals. They span the Kaameshwari, Saraswati and Raageshwari fields. The disclosures relate to exploration progress and do not provide production volumes or commercial timelines for these discoveries.

Cambay Block Impairment Provision

The Q2 FY27 results included a ₹379 crore impairment provision linked to Cambay Block litigation, according to the information provided. The company’s filing also referred to ongoing legal uncertainty affecting asset recoverability. This is relevant for investors because impairment provisions can affect reported earnings and the carrying value of assets, even when operating performance improves.

Market Significance of the Quarter

The September-quarter result illustrates the effect of price realisations on an upstream oil and gas producer’s earnings. While production fell, the higher realised price per barrel helped lift revenue, EBITDA and net profit on a year-on-year basis. The margin expansion also reflected the company’s stated focus on cost optimisation. At the same time, the production decline remains an important operating metric, alongside developments in Rajasthan and the Cambay Block matter.

What Comes Next

Vedanta Oil & Gas has reported a return to profitability in Q2 FY27, supported by higher price realisations despite lower output. Investors will track future production trends, progress on the Rajasthan discoveries and any updates related to the Cambay Block litigation. The next set of financial disclosures will provide further detail on whether operating margins and production levels are sustained.