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

Introduction to Vedanta's Q3 Performance

Vedanta Limited, the diversified natural resources conglomerate, announced a robust financial performance for the third quarter of fiscal year 2026, ending December 31, 2025. The company reported a significant 61% year-on-year (YoY) increase in its consolidated net profit attributable to owners, reaching ₹5,710 crore. This growth was underpinned by record-breaking operational metrics, favorable commodity markets, and enhanced efficiency across its business segments. The results reflect a period of strong execution, positioning the company for its next phase of growth, highlighted by the recent approval for its planned demerger.

Detailed Financial Breakdown

The company's financial statements for the quarter revealed broad-based strength. Consolidated revenue from operations grew by 37% YoY to ₹23,369 crore, compared to ₹17,063 crore in the same period last year. This top-line growth was primarily driven by higher volumes, stronger premiums on products, favorable prices on the London Metal Exchange (LME), and foreign exchange gains.

The most notable achievement was the company's highest-ever quarterly Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which stood at ₹15,171 crore. This represents a 34% increase YoY and a 31% rise sequentially. Consequently, the EBITDA margin expanded significantly by 629 basis points YoY to 41%, marking one of the highest margins in the company's history.

Operational Excellence Across Segments

Vedanta's strong quarter was a result of outstanding performance across its diverse business verticals. The Aluminium business delivered a standout performance, achieving a record alumina production of 794 kilo tonnes, up 57% YoY. The segment's EBITDA margin reached a strong $1,268 per ton.

Zinc India, operated by Hindustan Zinc, also recorded its highest-ever quarterly EBITDA of ₹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. The Oil & Gas business achieved a key operational milestone with the first subsea template installation in India, while the Thermal Power business saw its EBITDA grow by an impressive 188% YoY.

Strengthening the Balance Sheet

Vedanta continued its focus on disciplined capital management and deleveraging. The company's net debt declined to ₹60,624 crore during the quarter. This led to a significant improvement in the net debt-to-EBITDA ratio, which stood at 1.23 times, compared to 1.40 times in the corresponding quarter of the previous year. The improved operating performance also translated into stronger capital efficiency, with the Return on Capital Employed (ROCE) increasing to 27%, up by 296 basis points YoY. This financial discipline was recognized by credit rating agencies, with S&P, Moody's, and Fitch upgrading their outlooks.

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 pointed to the operational milestones in the Oil & Gas and Power segments as indicators of the company's strong momentum. Ajay Goel, the Chief Financial Officer, reiterated the strength of the financial results, noting the highest-ever quarterly Profit After Tax (PAT) of ₹7,807 crore and the sharp expansion in EBITDA margins. He emphasized that the strengthening balance sheet and positive credit rating reaffirmations underscore market confidence in Vedanta's growth trajectory.

Demerger and Future Outlook

A pivotal development during the quarter was the approval from the National Company Law Tribunal (NCLT) on December 16, 2025, for the company's demerger scheme. This plan will separate Vedanta's core businesses into five independent, sector-focused entities. Management believes this strategic move will unlock significant long-term value for shareholders by creating pure-play companies that can attract focused investment and pursue tailored growth strategies. The company is now advancing its 'Vedanta 2.0' journey, aimed at transforming into a natural resources, energy, and technology leader.

Market Reaction and Conclusion

Investors responded positively to the strong quarterly report. On the day the results were announced, Vedanta's shares closed approximately 4% higher at ₹766.1 per share on the BSE. The performance in the third quarter demonstrates Vedanta's ability to capitalize on favorable market conditions while driving operational efficiencies. With a strengthened balance sheet and a clear strategic path forward through the demerger, the company is well-positioned to continue its growth and value creation for its stakeholders.