Vedanta Q3 Results: Profit Soars 61% to Rs 5,710 Crore

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 significant 61% increase compared to the same period last year. This growth was driven by a combination of higher commodity prices, increased production volumes, and enhanced operational efficiencies across its diverse business segments. The results underscore a period of strong execution for the company as it moves forward with a major corporate restructuring.

Detailed Financial Performance

Vedanta's consolidated revenue from operations for Q3 FY26 rose by 37% year-on-year to Rs 23,369 crore. The impressive top-line growth was attributed to higher London Metal Exchange (LME) prices for key metals, improved sales volumes, stronger premiums, and favorable foreign exchange movements. A standout achievement for the quarter was the company's highest-ever quarterly Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which reached Rs 15,171 crore, a 34% increase from the previous year. Consequently, the EBITDA margin expanded by 629 basis points to 41%, reflecting strong cost control and favorable market conditions.

Operational Excellence Across Business Segments

The company's strong financial results were underpinned by record-breaking operational performances in several key divisions. The Aluminium business delivered a standout quarter, achieving its highest-ever alumina production of 794 kilo tonnes (kt), a 57% YoY increase. Cast metal aluminium production also reached a record 620 kt. The Zinc India segment, operated by Hindustan Zinc, recorded its highest-ever quarterly EBITDA of Rs 6,064 crore, driven by record mined metal output of 276 kt. The Oil & Gas business achieved a significant milestone with India's first subsea template installation, while the Thermal Power business saw its EBITDA grow by 188% YoY, supported by a 62% increase in sales volumes. The Steel and Ferrochrome business also set new records, with steel billet production at 285 kt and ferrochrome output up 32% YoY.

Balance Sheet Strength and Debt Management

Vedanta demonstrated disciplined capital management, leading to a stronger balance sheet. The company's net debt declined to Rs 60,624 crore as of December 31, 2025. This reduction improved the net debt-to-EBITDA ratio to 1.23x, a significant improvement from 1.40x in the corresponding quarter of the previous year. The company maintained a healthy cash and cash equivalents position of Rs 20,085 crore. This financial prudence was recognized by credit rating agencies, with CRISIL and ICRA reaffirming Vedanta's 'AA' credit rating following the demerger approval. Furthermore, S&P, Moody's, and Fitch Ratings upgraded their outlook for Vedanta Resources Limited (VRL) from 'Stable' to 'Positive'.

Management Commentary

Arun Misra, Executive Director of Vedanta, described the quarter as a landmark period for the company. He highlighted the record EBITDA and the exceptional performance of the Aluminium and Zinc India businesses. He also noted the progress in the Oil & Gas, Power, and Steel segments, stating that the results demonstrate strong operational momentum as the company advances its 'Vedanta 2.0' journey. Chief Financial Officer Ajay Goel echoed these sentiments, emphasizing the record quarterly profit after tax (PAT) of Rs 7,807 crore and the sharp expansion in EBITDA margins. He pointed to the credit rating upgrades as a sign of market confidence in Vedanta's growth trajectory and its commitment to unlocking long-term shareholder value.

Strategic Milestone: Demerger Approval

A pivotal development during the quarter was the approval from the National Company Law Tribunal (NCLT) on December 16, 2025, for Vedanta's demerger scheme. This plan will split the conglomerate into five separate, publicly listed 'pure-play' entities focused on specific commodities. The demerger is a strategic move designed to simplify the corporate structure, unlock value for shareholders, and allow each business to pursue its own growth strategy and attract specific investors. This approval marks a crucial step in the company's plan to create a more streamlined and focused operational framework.

Market Context and Stock Performance

Vedanta's performance was supported by a favorable global commodity market. During the quarter, benchmark LME prices for three-month aluminium, zinc, and copper rose by 11.8%, 5.3%, and 21% year-on-year, respectively. Analysts noted that factors such as winter power curtailments and tighter environmental regulations in China supported higher aluminium prices. Reflecting the strong results and positive market sentiment, Vedanta's shares closed nearly 4% higher at Rs 766.10 on the day the results were announced.

Conclusion

Vedanta's third-quarter results for FY26 showcased exceptional growth in profitability and revenue, driven by record operational output and favorable commodity prices. The company not only delivered its highest-ever EBITDA but also strengthened its balance sheet by reducing debt. With the crucial NCLT approval for its demerger now in place, Vedanta is poised to enter a new phase of growth, aiming to unlock further value across its distinct business verticals and create long-term value for its stakeholders.