Vedanta Posts Record Financial Year with Quarterly Profit Surge of 89%

Vedanta Limited announced its unaudited consolidated results for the fourth quarter and full fiscal year ended March 31, 2026, marking the company's most robust financial performance on record.

The mining and metals conglomerate achieved its highest quarterly revenue at ₹51,524 crore, representing a 29% year-on-year increase. Full-year revenue climbed to ₹1,74,075 crore, up 15% from the previous year. Quarterly EBITDA surged to ₹18,447 crore, a 59% jump year-on-year, with margins expanding by 915 basis points to reach 44%. For the entire fiscal year, EBITDA totalled ₹55,976 crore, up 29% year-on-year, with margins at approximately 39%.

The company's bottom line showed particularly strong growth, with fourth-quarter profit after tax reaching ₹9,352 crore, an 89% year-on-year increase. The full-year profit after tax hit an unprecedented ₹25,096 crore, reflecting a 22% year-on-year rise. The company attributed this robust performance to strong operational execution and improved cost efficiencies.

Vedanta's financial position strengthened substantially during the year. The net debt to EBITDA ratio improved to 0.95x, the best level in 14 quarters, compared to 1.22x in the prior year. Both CRISIL and ICRA reaffirmed the company's credit rating at AA, while Fitch Ratings upgraded Vedanta Resources, the parent company, to BB-.

The company generated substantial free cash flows, with pre-capex free cash flow reaching ₹11,930 crore in the fourth quarter, up 53% year-on-year, and ₹26,013 crore for the full year. Cash and cash equivalents increased 38% year-on-year to ₹28,485 crore. Return on capital employed improved to approximately 32%, up 539 basis points year-on-year, reflecting enhanced capital efficiency.

Across its operations, Vedanta delivered record production volumes. The aluminium business achieved its highest annual production at 2,456 kt, up 1% year-on-year, while alumina output surged 48% year-on-year to 2,916 kt. Zinc India recorded best-ever mined metal production of 1,114 kt, up 2% year-on-year, with refined metal production reaching 851 kt, up 3% year-on-year. Zinc International production rose 27% year-on-year to 225 kt. Ferro chrome production reached a record 101 kt, up 21% year-on-year, while iron ore pig iron output stood at 895 kt, up 10% year-on-year. Copper cathode production increased to a record 170 kt, up 15% year-on-year. The power business reported annual sales of 18,571 MU, up 14% year-on-year.

During the fiscal year, the company achieved several significant milestones. These included first metal production from India's largest 525 kA smelter at BALCO in Chhattisgarh, the acquisition of Incab Industries to strengthen its downstream copper and aluminium portfolio, an offshore gas discovery at the Cairn-operated Ambe block, and securing a five-year, 500 MW power purchase agreement for Meenakshi and Athena projects.

The company is progressing with its demerger, which became effective May 1, 2026, as part of its strategy to unlock long-term value.

Vedanta delivered a total shareholder return of 48.6% in fiscal 2026, outperforming the Nifty Metal Index by more than double. The company maintained a strong dividend payout, including ₹34 per share for the full year.

Arun Misra, Executive Director at Vedanta, stated that FY26 represented a year of strong execution with record operational performance across the portfolio. He highlighted the company's delivery of 2.9 million tonnes of alumina, 2.46 million tonnes of aluminium, 1.1 million tonnes of mined metal at Zinc India, 895 kt of pig iron, and 101 kt of ferrochrome, reflecting improved operating efficiency alongside the ramp-up of new capacities. The company deployed approximately ₹15,000 crore of growth capex during the year, commissioning key projects including Lanjigarh Train II, the new BALCO smelter, downstream expansions at Jharsuguda, the Debari roaster at Zinc India, and 1.3 GW of power capacity. Misra noted that the company's focus on operational excellence resulted in the lowest costs in five years at the aluminium and zinc businesses.

Chief Financial Officer Ajay Goel described the quarter as a defining point for Vedanta, with the delivery of the company's strongest financial performance. He emphasised the all-time highs in revenue, EBITDA, and profit after tax for both the quarter and the full year, positioning the company for the next phase of growth following the demerger. Goel highlighted the 15% year-on-year revenue growth to ₹1,74,075 crore, 29% year-on-year EBITDA growth to ₹55,976 crore, and PAT of ₹25,096 crore, marking a 22% year-on-year jump. He noted the strengthened balance sheet with net debt to EBITDA improving to 0.95x from 1.22x a year earlier, with both CRISIL and ICRA reaffirming the AA credit rating. Despite pursuing growth with capex investment of ₹14,918 crore during the year, the company continued rewarding shareholders through a dividend of ₹34 per share and delivering a total shareholder return of 48.6%.

On the environmental, social, and governance front, Vedanta Aluminium secured second rank in the S&P Corporate Sustainability Assessment for the third consecutive year. Cairn Oil & Gas, in its first participation, placed among the top five companies globally in the oil and gas upstream and integrated sector, emerging as the highest scorer in India. In the CDP Ratings, Vedanta maintained a strong climate score of 'B', while its water rating improved from 'B' to 'A minus'.

The company advanced its sustainability agenda with renewable energy use rising 52% year-on-year, greenhouse gas intensity declining 9.5%, and water recycling increasing to 94 million cubic metres. Key initiatives included the deployment of electric forklifts, energy efficiency projects, renewable sourcing, and air quality improvements.

On the social front, Vedanta invested ₹422 crore in corporate social responsibility initiatives during FY26, positively impacting 6.95 million lives globally. The initiatives empowered 2.70 million individuals through skill-development programmes, surpassing the stated ambition of 2.5 million, and provided social welfare support to 30.89 million women and children during the year.

The company received numerous awards and recognitions during the quarter across various categories including corporate social responsibility, safety, business excellence, and sustainability. These included recognition from the British Safety Council, The Times Group, Frost and Sullivan, and the Indian Bureau of Mines, among others.