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

Introduction to Vedanta's Landmark Quarter

Mining and metals conglomerate Vedanta Limited announced a robust financial performance for the third quarter of fiscal year 2026, ending December 31, 2025. The company reported a consolidated net profit of Rs 5,710 crore, marking a substantial 61% increase compared to the Rs 3,547 crore earned in the same period of the previous fiscal year. This growth was underpinned by a combination of higher commodity prices, increased production volumes, and significant operational efficiencies across its diverse business segments.

Detailed Financial Performance

Vedanta's revenue from operations for Q3 FY26 climbed by 37% year-on-year to Rs 23,369 crore. The impressive top-line growth was primarily driven by higher prices on the London Metal Exchange (LME), improved sales volumes, stronger premiums on its products, and favorable foreign exchange gains. The company's operational strength was further highlighted by its earnings before interest, taxes, depreciation, and amortization (EBITDA), which surged 34% year-on-year to a record Rs 15,171 crore. This represents the highest-ever quarterly EBITDA reported by the company. Consequently, the EBITDA margin expanded significantly by 629 basis points to 41%, reflecting strong profitability and cost management.

Balance Sheet and Debt Position

The company also made notable progress in strengthening its balance sheet. Gross debt stood at Rs 80,709 crore as of December 31, 2025, while net debt declined to Rs 60,624 crore. This improvement led to a better net debt-to-EBITDA ratio of 1.23x, a significant improvement from 1.40x recorded in the corresponding quarter of the previous year. Vedanta maintained a healthy liquidity position with cash and cash equivalents of Rs 20,085 crore. The disciplined capital deployment and higher earnings contributed to an improved return on capital employed, which stood at 27%.

Key Financial Metrics: Q3 FY26 vs Q3 FY25

Strong Performance Across Business Segments

Vedanta's operational excellence was evident across its key business verticals. The Aluminium business, which contributes nearly 40% of the company's revenue, delivered a standout performance. It achieved record quarterly alumina production of 794 kilo tonnes and cast metal aluminium production of 620 kilo tonnes. This resulted in the segment's strongest-ever EBITDA margin of $1,268 per ton.

Zinc India (Hindustan Zinc) also recorded its highest-ever quarterly EBITDA of Rs 6,064 crore, driven by record mined and refined metal output. The silver business was a significant contributor, accounting for 44% of Zinc India's overall profit. Furthermore, Zinc International reported a 28% year-on-year increase in production. The Oil & Gas business achieved a major milestone with India's first subsea template installation, while the Thermal Power business saw its EBITDA grow by 188% YoY.

Strategic Demerger and Market Confidence

A significant strategic development during the quarter was the approval from the National Company Law Tribunal (NCLT) on December 16, 2025, for Vedanta's demerger into five separate, pure-play entities. This move is aimed at unlocking long-term value for shareholders. The market's confidence in Vedanta's trajectory was underscored by the reaffirmation of its 'AA' credit rating by CRISIL and ICRA, along with credit rating outlook upgrades from 'Stable' to 'Positive' by S&P, Moody's, and Fitch Ratings.

Management Commentary

Arun Misra, Executive Director of Vedanta, described the quarter as a landmark period, highlighting the record EBITDA and the exceptional performance of the Aluminium and Zinc India businesses. He emphasized that the results demonstrate strong operational momentum as the company advances its 'Vedanta 2.0' journey.

Ajay Goel, Chief Financial Officer, reiterated the remarkable nature of the quarter's results. He pointed to the record revenue and profit figures, sharp margin expansion, and the strengthening balance sheet as key achievements that position the company for an exciting phase of growth and value creation for all stakeholders.

Market Context and Outlook

The positive results were supported by a favorable global commodity market. Benchmark prices for aluminium, zinc, and copper on the LME rose by 11.8%, 5.3%, and 21% year-on-year, respectively, during the quarter. Analysts noted that factors such as higher costs for Chinese producers, winter power curtailments, and tighter environmental rules are expected to keep aluminium prices firm in the near term. Following the announcement of the results, Vedanta's shares closed 3.93% higher at Rs 766.10 on the BSE.

Conclusion

Vedanta's third-quarter performance in FY26 showcases a company firing on all cylinders, with record-breaking profitability and robust operational execution. The combination of favorable market conditions and internal efficiencies has produced a strong set of results. With the strategic demerger now approved, Vedanta is poised to unlock further value as it transitions into a portfolio of focused, independent businesses.