Vedanta Limited recorded a consolidated net profit of Rs 1798 crore for the second quarter of the financial year 2025–26, reflecting a sharp 58.69 percent year-on-year decline. The fall in profit was primarily driven by significant exceptional losses incurred during the quarter under review. In the same period last year, the company had posted an exceptional gain of Rs 1160 crore
The exceptional loss included a write-off of Rs 1407 crore related to Talwandi Sabo Power Limited, a wholly owned subsidiary of Vedanta, following a Supreme Court directive dated August 19. Although a review petition is still pending in court, the company has considered the amount non-recoverable. In addition, Vedanta paid Rs 660 crore to SEPCO Electric Power Construction Corporation as part of a settlement agreement
Despite these setbacks, Vedanta’s revenue rose by nearly 6 percent to Rs 39868 crore during the quarter. According to the company’s financial statement, the increase in revenue was supported by higher London Metal Exchange premiums and favorable foreign exchange movements, although partially offset by lower production volumes
Focus on Cost Control and Operational Efficiency
Arun Misra, Executive Director of Vedanta, stated that the company’s performance was largely supported by cost optimization and better metal prices. He noted that profit after tax before exceptional items rose 13 percent year-on-year, while EBITDA grew 12 percent in the same period. Misra added that the company expects stronger results in the second half of FY26 due to improved weather conditions after the monsoon, leading to higher productivity across operations
He emphasized that the second half generally delivers 30 to 40 percent better performance than the first, mainly because of increased production volumes, longer operational hours, and reduced shutdown expenses, which together lower operating costs
Progress on Demerger and Financial Strength
Vedanta’s Chief Financial Officer, Ajay Goel, said the company’s plan to demerge into five separate entities—Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Iron and Steel, and Vedanta Limited—is in its final stage. The next hearing before the National Company Law Tribunal is scheduled for November 12 and is expected to be the concluding one. He reaffirmed that the demerger process is on track for completion by March 2026 and maintained the company’s full-year profit guidance at around six billion dollars or Rs 53000 crore
Goel highlighted that Vedanta’s net debt to EBITDA ratio improved to 1.37 times from 1.49 times last year, reflecting better financial stability. As of September 2025, the company’s total net debt stood at Rs 62063 crore
Record Aluminium Output and Zinc Production Update
Vedanta achieved its highest-ever aluminium production for a quarter and half-year, reaching 617 kilo tonnes and 1222 kilo tonnes respectively. In the zinc segment, mined metal production for the first half of FY26 stood at 523 kilo tonnes, while saleable silver production during the quarter was 144 metric tonnes, in line with lead output trends. International zinc operations saw a 44 percent rise in production, mainly due to strong performance from the Gamsberg mine
Funding the Jaiprakash Associates Acquisition
Discussing Vedanta’s acquisition of bankrupt Jaiprakash Associates, Goel said the deal would be financed entirely through internal cash accruals. The company has received approval from the Competition Commission of India, while the Committee of Creditors is expected to conclude voting by mid-November. The acquisition, valued at a net present cost of around Rs 12500 crore over five to six years, will be supported by Vedanta’s strong balance sheet and robust cash flow generation.
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