Vedanta Q4 FY26 profit jumps 89% before May 2026 demerger

Record quarter caps FY26 for Vedanta

Vedanta Ltd reported its strongest-ever quarterly performance for the January to March 2026 period, led by higher sales volumes, stronger global metal prices and gains from a weaker rupee. Consolidated profit after tax (PAT) rose 89% year-on-year (YoY) to ₹9,352 crore. In the same quarter last year, the company reported PAT of ₹4,961 crore. Revenue from operations increased 29% YoY to ₹51,524 crore, compared with ₹39,789 crore a year earlier. The company also said revenue was up 12% quarter-on-quarter (QoQ), supported by higher LME prices, volumes, premiums and forex gains.

What changed in Q4: prices, volumes and currency

Vedanta said the quarter benefited from improved commodity realisations and higher production volumes across key businesses. It also highlighted cost efficiencies and favourable forex movements as additional support to profitability. EBITDA surged 59% YoY to a record ₹18,447 crore, while EBITDA margin expanded to around 44%, up more than 900 basis points from the year-ago period. The company attributed the margin expansion to stronger realisations, better volumes, cost efficiency initiatives, and lower finance costs, alongside forex benefits.

Expenses rose, but operating leverage remained strong

Total expenses during the quarter rose to ₹19,119 crore from ₹13,702 crore in the year-ago period. Despite higher expenses, the earnings increase indicates strong operating leverage amid higher price realisations and volumes. Management commentary also pointed to improved operating efficiency and the ramp-up of new capacities as drivers.

FY26 full-year performance: profit, revenue and EBITDA up

For FY26, Vedanta reported net profit of ₹25,096 crore, up 22% YoY. Annual revenue stood at ₹1,74,075 crore, up 15% YoY. FY26 EBITDA rose 59% YoY to ₹55,976 crore, according to the figures shared in the report. The company said these results reflected record operational performance and cost discipline across businesses.

Segment snapshot: aluminium and zinc lead the quarter

Vedanta’s segment disclosures showed strong contributions from aluminium and zinc-linked businesses during the quarter. Revenue from zinc, lead and silver increased 44% YoY to ₹12,672 crore, aided by robust zinc and silver prices on the LME. Aluminium revenue rose 17% YoY to ₹18,753 crore, with the company citing favourable prices linked to tight global supply. Aluminium segment EBITDA increased 82% YoY to ₹8,485 crore. Zinc India EBITDA rose 61% YoY to ₹7,743 crore, with the company stating it achieved its lowest cost of production in five years.

Oil and gas saw weaker operating metrics, with production down 15% to 81.5k boepd, primarily due to natural decline. In that segment, revenue contracted 3% and EBITDA declined 12% to ₹1,065 crore. Iron ore revenue rose 13% YoY to ₹1,722 crore, while EBITDA increased 32% to ₹411 crore, even as saleable iron production fell 1%. The steel business reported a 12% increase in revenue to ₹2,107 crore. Copper swung to a profit of ₹8 crore after a loss of ₹49 crore last year.

Operational output and FY26 growth capex

Executive Director Arun Misra said FY26 saw strong execution and record operational performance. Over the year, Vedanta produced 2.9 million tonnes of alumina, 2.46 million tonnes of aluminium, and 1.1 million tonnes of mined metal at Zinc India. The company also reported production of 895 kt of pig iron and 101 kt of ferrochrome.

Vedanta deployed ₹14,918 crore as growth capital expenditure in FY26. It commissioned projects including Lanjigarh Train II, a new BALCO smelter, downstream expansions at Jharsuguda, the Debari roaster at Zinc India, and 1.3 GW of new power capacity. Misra said the aluminium and zinc businesses recorded their lowest costs in the last five years.

Balance sheet and leverage indicators

Vedanta reported gross debt of ₹81,740 crore as of March 31, 2026, and net debt of ₹53,254 crore. The company also said net debt-to-EBITDA improved to 0.95 times, the best level in 14 quarters, supported by strong cash flows and deleveraging.

Demerger effective May 1, 2026: what Vedanta has planned

CFO Ajay Goel said the quarter marked a defining point for Vedanta, citing all-time highs in revenue, EBITDA and PAT for both the quarter and the full year. The company has approved May 1, 2026 as the effective date for the demerger of its aluminium, merchant power, oil and gas, and iron ore businesses into separate listed entities. Vedanta said the restructuring is intended to simplify the corporate structure, create sector-focused independent businesses, and offer direct investment opportunities to global, sovereign, retail, and strategic investors.

As part of the plan, the company expects to separately list Vedanta Aluminium Metal Limited, Talwandi Sabo Power Ltd, Malco Energy Ltd, and Vedanta Iron and Steel Limited.

Market impact: stock reaction and key reported drivers

Vedanta shares rose after the results. The stock was reported up 4.44% at ₹772.15 on the NSE in late afternoon trade, and also recorded closing gains near 5% (including ₹775 on NSE and ₹773.25 on BSE, as per the figures cited). The move followed record quarterly earnings and confirmation of the May 1 demerger timeline.

The company also flagged that conflict-related disruptions in West Asia pushed input costs higher by $15 to $10 per tonne, particularly for energy and logistics. Management commentary said this was offset by higher metal prices and favourable currency movement, with a cited gain of about $100 per tonne.

Key numbers at a glance

Segment highlights for Q4 FY26

Why the results matter

Vedanta’s quarter combines a cyclical tailwind from stronger metal prices with operational improvements that lifted margins to around 44%. Segment data suggests aluminium and zinc remained the primary earnings engines, while oil and gas continued to face production decline. The improvement in net debt-to-EBITDA to 0.95x is also notable in a commodity business, as it reflects the translation of strong cash flows into lower leverage.

The timing is important because the company has reiterated the May 1, 2026 effective date for the demerger. Management has positioned the restructuring as a way to create sector-focused listed companies and provide more direct exposure to individual verticals.

Conclusion

Vedanta ended FY26 with record quarterly earnings, supported by higher realisations, stronger volumes, and forex gains, while continuing to invest in expansion projects. The next key milestone is the planned demerger effective May 1, 2026, after which the company expects separate listings for multiple business verticals.