Strong earnings growth ahead for Vedanta

Vedanta’s (VEDL) Q2FY26 consolidated revenue and operating profit beat consensus estimates due to strong returns from aluminium.

- DEVANGSHU DATTA

Apart from various capacity expansions that will come online within the next financial year, captive coal and bauxite mines will cut costs and boost margins.

Debt in parent Vedanta Resources (VRL) is expected to decline. Demerger and listing of the five demerged entities is expected by end-FY26. VEDL reaffirmed the Jaypee Group power asset acquisition will not affect deleveraging ordemerger timelines.

VEDL reported consolidated revenue of $39,900 crore, up 6 per cent year-on-year (Y-0-Y) and up s percent quarter-on-quarter (Q-0-Q), due to higher London Metal Exchange (LME) prices and forex gains in Q2FY26. Consolidated operating profit was %11,400 crore, up 16 percent Yo-Y. The operating profit margin was 28.6 per cent against 26.1 per cent in Q2FY25.

Adjusted net profit was at €3,350 crore, up 13 percent Yo-Y and up5 per cent Q-o-Q. Anexceptional item of %2,070 crore was written off. In H1FY26, revenue was 77,700 crore, up 6 per cent Yo-Y and operating profit was 21,300 crore (up 8 per cent), while adjusted net profit was flat at 6,500 crore.