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Vedanta's Q2 Profit Plunge: 37% Drop Amid Revenue Growth Mystery

Vedanta Limited reported a significant 37% drop in its second-quarter net profit. The company's profit fell to Rs 3,479 crore compared to Rs 5,603 crore in the same period last year. Despite the profit decline, Vedanta actually saw its revenue grow by nearly 6% during the quarter. The company attributed its performance to exceptional losses and challenging commodity price conditions.

Key Points: Vedanta Q2 Net Profit Falls 37% to Rs 3,479 Crore

  • Consolidated profit dropped 37% year-on-year to Rs 3,479 crore
  • Revenue increased 5.9% to Rs 39,868 crore despite profit decline
  • Company sustained net exceptional loss of Rs 2,067 crore affecting profitability
  • Parent company VRL refinanced $550 million, reducing interest costs significantly
2 min read

Vedanta's Q2 net profit drops 37 pc to Rs 3,479 crore

Vedanta reports 37% YoY profit decline to Rs 3,479 crore despite 5.9% revenue growth. Company cites exceptional losses and commodity price pressures.

"Our H1 FY26 performance reflects Vedanta's resilience. We delivered 8% YoY EBITDA growth in a period marked by uncertainties - Arun Misra, ED, Vedanta"

Mumbai, Oct 31

Vedanta Limited on Friday reported a 37 per cent year-on-year (YoY) decline in its consolidated profit after tax (PAT) for the July-September period (Q2 FY26) at Rs 3,479 crore.

The metals and mining conglomerate had posted a PAT of 5,603 crore in the corresponding quarter a year ago. The profit of the Anil Agarwal-led firm fell 21.9 per cent quarter-on-quarter (QoQ) as well, from Rs 4,457 crore.

However, the company's revenue from operations for the quarter under review rose 5.9 per cent (on-year) to Rs 39,868 crore from Rs 37,634 crore and over 4 per cent (on-quarter) from Rs 37,824 crore, according to its exchange filing.

Vedanta's total expenses remained flat at Rs 33,449 crore as compared to Rs 33,169 crore in the second quarter of the previous fiscal (Q2 FY25); however, the firm sustained a net exceptional loss of Rs 2,067 crore for the quarter, which affected its profitability.

According to the stock exchange filing, Vedanta's parent company, VRL, successfully refinanced $550 million through a bond issue and reduced the overall interest costs from 11.6 to 10 per cent, and average debt maturity significantly improved to 4.5 years.

"Our H1 FY26 performance reflects Vedanta's resilience. We delivered 8 per cent YoY EBITDA growth in a period marked by uncertainties and lower prices of key commodities that we deal with, versus the annual average of FY25. This performance is on the back of our disciplined approach, focusing on volume growth and cost reduction across businesses," said Arun Misra, ED, Vedanta.

"We delivered record production of Aluminium, Alumina, Zinc MIC in our international operations, Pig Iron and power generation," he added.

Meanwhile, Vedanta shares ended the session in negative territory on Friday. The stock fell 2.5 per cent to close at Rs 494.30 per share.

- IANS

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Reader Comments

R
Rohit P
At least they're showing some positive signs - revenue growth and record production in key segments. The refinancing and lower interest costs are smart moves. Long-term investors should stay patient.
A
Arjun K
Vedanta is a bellwether for Indian mining sector. When they struggle, it reflects broader economic challenges. Global commodity prices have been volatile, so this isn't entirely unexpected.
S
Sarah B
The management seems confident about their cost reduction and volume growth strategy. The debt refinancing at lower rates is definitely a positive for future profitability. Might be a good buying opportunity at current levels.
V
Vikram M
Honestly, I'm disappointed. Vedanta has been struggling with profitability for a while now. The company needs to address these exceptional losses more effectively. Shareholders deserve better performance. 😕
K
Kavya N
The record production numbers in aluminium and zinc are impressive! Shows their operational efficiency is improving. Once commodity prices recover, we should see better results. Long-term story still looks good.

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