Vedanta Q3 Results: Profit Soars 60% on Record EBITDA

Introduction to Vedanta's Strong Quarter

Vedanta Ltd., the diversified natural resources conglomerate, announced a robust financial performance for the third quarter ending December 31, 2025. The company reported a significant 60.1% year-on-year surge in net profit, underpinned by record-breaking operational output and favourable commodity prices. The results, declared after market hours on January 29, 2026, reflect strong efficiency gains and growth across its primary business verticals, particularly aluminium and zinc.

Stellar Financial Performance in Q3

Vedanta's consolidated revenue for the quarter grew by 37% year-on-year, reaching ₹23,369 crore compared to ₹17,063 crore in the same period last year. This growth was driven by higher volumes, improved premiums on products, and stronger London Metal Exchange (LME) prices for key commodities. The company achieved its highest-ever quarterly Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA), which stood at ₹15,171 crore, a 34% increase from the previous year. Consequently, the EBITDA margin expanded significantly by 629 basis points to 41%, marking one of the highest margins reported by the company. Net profit attributable to shareholders jumped to ₹5,710 crore from ₹3,547 crore in Q3 FY25.

Aluminium Business Leads the Charge

The aluminium division was a standout performer during the quarter, delivering its strongest-ever results. The segment's EBITDA reached ₹7,023 crore, surpassing market expectations. This was supported by a record EBITDA per tonne of $1,268. Operationally, Vedanta achieved its highest-ever quarterly aluminium production of 620 kilotonnes (kt). The Lanjigarh refinery also set a new record with alumina production of 794 kt, a 57% YoY increase, driven by the successful commissioning of its Train II expansion. This performance solidifies Vedanta's position as India's largest aluminium producer.

Zinc and Silver Operations Set New Benchmarks

Vedanta's subsidiary, Hindustan Zinc, in which it holds a 60.7% stake, also delivered a record-breaking performance. The Zinc India business recorded its highest-ever quarterly EBITDA of ₹6,064 crore. This was driven by record mined metal production of 276 kt and refined metal output of 270 kt. The growth was supported by higher ore production and debottlenecking projects at its facilities. The silver business also made a substantial contribution, accounting for 44% of Zinc India's overall profit, with saleable silver production standing at 158 metric tonnes.

Broad-Based Growth Across Verticals

Vedanta's other business segments also demonstrated strong operational improvements. The power business saw a 40% YoY increase in total power sales, reaching 4,530 million units, largely due to the ramp-up of the Athena and Meenakshi power plants. The steel and ferrochrome business achieved its highest-ever quarterly billet production of 285 kt. Meanwhile, Copper India operations recorded their highest quarterly cathode production in seven years at 45 kt, highlighting a broad-based momentum across the company's portfolio.

Strengthening Balance Sheet

The company's robust operational cash flow contributed to a stronger balance sheet. At the end of the December quarter, net debt stood at ₹60,624 crore. The net debt-to-EBITDA ratio improved significantly to 1.23 times, compared to 1.40 times in the corresponding quarter of the previous year. This reduction in leverage highlights disciplined capital management and financial strength.

Market Response and Strategic Outlook

Investors responded positively to the company's strong performance. Shares of Vedanta closed 4.1% higher at ₹767.55 on the day of the results announcement. The stock has delivered a return of 78% over the last 12 months. Looking ahead, Vedanta is progressing with its strategic plan to demerge its businesses into five separate listed entities. This move is aimed at unlocking value for shareholders by creating pure-play companies focused on aluminium, oil and gas, power, steel, and base metals.

Conclusion

Vedanta's third-quarter results for FY26 demonstrate exceptional operational execution and financial discipline. Record-breaking production in key segments, coupled with favourable market conditions, led to a significant increase in profitability and stronger margins. With a healthier balance sheet and a clear strategic roadmap for its demerger, the company is positioned to sustain its growth momentum and create long-term shareholder value.