Vedanta Iron and Steel Q1 FY27: Margin-led earnings turnaround after the demerger

Revenue from core operations was INR 3,662 crore, EBITDA was INR 515 crore with a 14 percent margin, and PAT was INR 121 crore for the quarter ended 30 June 2026.

The presentation attributes the YoY EBITDA increase to stronger steel and iron ore realizations, operational efficiency improvements at ESL, and higher volumes including contributions from VAB Goa and IOG1.

Steel saleable production was 582 KT and sales were 572 KT. Steel EBITDA margin improved to INR 5,864 per ton and margin percentage improved to 12 percent, as per the presentation.

Iron ore saleable production was 2.6 Mn DMT and merchant sales were 1.5 Mn DMT. Iron ore EBITDA margin was INR 1,226 per ton, according to the presentation.

Net debt in June 2026 was reported at INR 2,733 crore, after demerger adjustments of INR 9,788 crore from March 2026 levels. Net Debt to EBITDA was reported at 1.3x.

Capex in progress includes Ductile Iron Pipe Goa with approved capex of INR 722 crore and ESL Phase 1A with approved capex of INR 2,975 crore. Total approved capex for these items is INR 3,697 crore, with INR 1,132 crore balance as of 30 June 2026.