Mumbai: Billionaire Anil Agarwal-led Vedanta Ltd capped FY26 with a record financial performance in its last earnings before a planned demerger, beating Street estimates, although analysts said the gains were largely driven by firm commodity prices rather than structural improvements.
The mining and metals major reported revenue of ₹1,74,075 crore for FY26, up 15.83% year-on-year and above Bloomberg’s ₹1,70,000 crore estimate based on a poll of 16 analysts. Profit attributable to owners rose 16% to ₹17,391 crore, according to exchange filings.
Operating performance was stronger, with Ebitda climbing 29% year-on-year to ₹55,976 crore, supported by higher aluminium and zinc prices as well as cost efficiencies that pushed production costs to multi-year lows.
“Our continued focus on operational excellence resulted in lowest costs in the last five years at aluminium and zinc business,” the company’s executive director Arun Misra said in a statement.
Capital expenditure for the year stood at ₹14,918 crore, focused on capacity expansion and supply chain integration. The company also announced a dividend of ₹34 per share.
In the fourth quarter, Vedanta reported revenue of ₹51,524 crore, up 29% compared to Q4FY25, and a profit attributable to owners of Vedanta almost doubled to ₹6,698 crore from ₹3,483 crore in Q4FY25.
The company described the quarter as a milestone ahead of its restructuring. “The quarter marks a defining point for Vedanta, with the delivery of our strongest-ever financial performance… and a clear positioning for the next phase of growth with demerger effective from 1 May 2026,” CFO Ajay Goel said.
However, analysts remained cautious on the quality of earnings. “The current performance looks largely supported by higher LME prices and strong numbers from key businesses rather than structural benefits,” said Suman Kumar, metals and mining analyst at Philip Capital.
He added that the aluminium segment remained mostly flat on full-year basis. “Costs have only eased marginally by about $50–60 year-on-year, so profitability is still heavily dependent on favourable prices,” Kumar said, adding that Vedanta’s integration of bauxite mines will be important.
“Lack of full vertical integration—due to continued delays in the Sijimali bauxite mine, now pushed to the first half of FY27—means margins may continue to lag peers,” Kumar said.
The market, however, was impressed, with Vedanta’s stock closing 4.83% higher on the NSE on Wednesday, outperforming benchmark Nifty 50, which was up by 0.76%.
Moving forward, proper execution is important for the company. “The oil and gas segment remains structurally weak, so growth is largely tied to expansions across aluminium, Hindustan Zinc, and international zinc operations. Projects like Gamsberg Phase 2 are nearing completion, with commissioning expected in FY27, and further expansion plans are being discussed—but delivery on the ground will be critical to watch.While these projects could support future earnings, execution remains key,” Kumar said.
For FY26, Vedanta Limited reported flattish production numbers across key businesses, with aluminium rising 1% from a year ago to 2.46 million tonnes, zinc India mined metal up 2% to 1.11 million tonnes, zinc international up 27% to 225 kt, while oil & gas output declined 16% to 87.2 kboepd (thousand barrels of oil equivalent per day), and pig iron production increased 10% to 895 kt.
Coming demerger
Vedanta is undergoing a major restructuring, splitting itself into five independent listed companies: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel, and parent Vedanta Ltd, which will house the zinc and silver businesses through Hindustan Zinc and act as an incubator for new opportunities.
“The shares of the resulting companies are expected to list and commence trading by mid June,” Deshnee Naidoo, chief executive officer of Vedanta’s parent company Vedanta Resources, said during a post-earnings interaction with analysts on Wednesday.
Vedanta Limited expects continued operational growth with aluminium production guided at 2.6-2.7 million tonnes and zinc mined metal output at 1,140-1,160 kt, alongside oil & gas production of 90-95 kboepd, as per the investor presentation.
In FY26, Vedanta’s aluminium business hit record production and lowest costs in five years. This segment contributes to about 40% of the company’s revenue. For the Sijimali Bauxite mines, the company is awaiting for their EC by next month and will start operations by the first half of the current fiscal.
The company added that the Zinc International’s Gamsberg expansion from 4mtpa to 8 mtpa is 94% complete and is expected to be commissioned next quarter, with a gradual ramp-up through the year, said Naidoo.
The company also did not give a timeline for restarting its Athena power plant in Chattishgarh after the accident, adding that a detailed assessment is underway. Naidoo said that the company is working with authorities to investigate the boiler incident and has “insurance in place” to mitigate any “losses”.
Vedanta also expects a turnaround in its copper business, guiding margins to rise to about 5% in FY27. “We do foresee the margin on the copper business going from roughly 1% right now going to at least 5% in FY27,” said Goel.
In Saudi Arabia, the company is commissioning a 200,000-tonne copper rod plant by September, while a larger smelter project remains under evaluation pending government incentives, Naidoo told analysts.
