Vedanta Q3 Profit Soars 61% to Rs 5,710 Crore in FY26

Vedanta Delivers Landmark Q3 Performance

Mining conglomerate Vedanta Limited announced a robust financial performance for the third quarter of fiscal year 2025-26, reporting a significant 61% year-on-year (YoY) increase in consolidated net profit attributable to its owners. The profit for the quarter ending December 31, 2025, stood at Rs 5,710 crore, a substantial rise from the Rs 3,547 crore recorded in the same period of the previous fiscal year. This growth was underpinned by strong operational execution, favourable commodity prices, and strategic cost efficiencies across its diverse business segments.

Record Revenue and EBITDA Growth

The company's consolidated revenue from operations surged by 37% YoY, reaching Rs 23,369 crore compared to Rs 17,063 crore in Q3 FY25. The revenue growth was primarily driven by higher prices on the London Metal Exchange (LME), increased sales volumes, stronger premiums, and gains from foreign exchange fluctuations. Vedanta achieved its highest-ever quarterly Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA), which climbed 34% YoY to Rs 15,171 crore. The EBITDA margin saw a sharp expansion of 629 basis points YoY, reaching 41%, marking the second-highest margin reported by the company to date.

Operational Excellence Across Key Segments

Vedanta's strong financial results were backed by exceptional operational performance. The aluminium business delivered a standout quarter, achieving record alumina production of 794 kilo tonnes (kt), up 57% YoY. Cast metal aluminium production also reached a record 620 kt. The Zinc India segment recorded its highest-ever quarterly EBITDA of Rs 6,064 crore, driven by record mined metal output of 276 kt and refined metal production of 270 kt. The Zinc International business also reported a 28% YoY increase in production. Furthermore, the company's Steel and Ferrochrome business achieved record production of steel billets at 285 kt, while the Thermal Power business saw its EBITDA grow by 188% YoY.

Strengthening the Balance Sheet

Alongside its impressive profitability, Vedanta made significant strides in strengthening its balance sheet. The company's net debt declined to Rs 60,624 crore during the quarter. This reduction improved the net debt-to-EBITDA ratio to 1.23 times, a notable improvement from 1.40 times in the corresponding quarter of the previous year. This reflects disciplined capital deployment and robust earnings. The company's return on capital employed (ROCE) also improved to 27%, up by 296 basis points from a year ago.

Strategic Demerger Receives Key Approval

A significant strategic development during the quarter was the approval from the National Company Law Tribunal (NCLT) for Vedanta's demerger scheme. This plan will restructure the conglomerate into five distinct, publicly listed entities focused on Aluminium, Oil & Gas, Power, Iron & Steel, and a residual Vedanta Limited. Management stated that this move is part of the 'Vedanta 2.0' journey, designed to unlock long-term value for shareholders by creating pure-play companies that can better attract investment and focus on their specific growth trajectories.

Favourable Market Conditions

Vedanta's performance was also supported by a favourable external environment. Global commodity prices remained firm during the quarter. On the LME, benchmark three-month prices for aluminium, zinc, and copper rose by 11.8%, 5.3%, and 21% YoY, respectively. Analysts noted that aluminium prices were particularly supported by production disruptions and higher costs for Chinese producers due to winter power curtailments and stricter environmental regulations, which are expected to keep prices firm in the near term.

Management Outlook and Market Reaction

Executive Director Arun Misra described the quarter as a landmark period for the company, highlighting the record EBITDA and the strong operational momentum heading into the demerger. Chief Financial Officer Ajay Goel emphasized the strengthening balance sheet and the market's confidence, reflected in credit rating reaffirmations from CRISIL and ICRA. Following the announcement of the results, Vedanta's shares closed approximately 4% higher at Rs 767.55 on the stock exchange, indicating a positive investor response to the strong performance and strategic clarity.

Conclusion: A Path to Value Unlocking

Vedanta's third-quarter results for FY26 demonstrate a powerful combination of operational efficiency, disciplined financial management, and favourable market dynamics. The record-breaking performance across key metrics, coupled with the strategic milestone of the demerger approval, positions the company for its next phase of growth. As Vedanta proceeds with its plan to create five independent entities, stakeholders will be closely watching how this restructuring unlocks the inherent value within its diverse portfolio of assets.