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    Vedanta

    VEDLNeutral
    Metals & Mining·29 Jan 2026
    Management Summary

    Vedanta delivered record-breaking Q3FY26 performance across all key metrics, achieving its highest ever quarterly EBITDA, revenue and PAT. The quarter marked significant operational milestones with capacity expansions and cost optimization. The NCLT approval for demerger represents a transformational milestone, positioning Vedanta for accelerated growth and enhanced shareholder value creation.

    Highlights

    6

    • Best ever quarterly EBITDA of Rs 15,171 crores with record 41% EBITDA margin

    • Lifetime high revenue of Rs 45,899 crores and PAT of Rs 7,807 crores

    • NCLT approved demerger scheme on December 16, 2025, targeting April 1 implementation

    • Aluminum business achieved lowest hot metal cost in 17 quarters at $1,674/ton

    • Multiple capacity additions across businesses including 1.5 MTPA Train 2 at Lanjigarh

    • HZL recorded five-year lowest production cost at $940/MT, 6% better than guidance

    Concerns

    1

    • Safety Performance

    Key financials

    Metrics

    7

    Periods

    2

    Headline

    3
    • Nine-month Revenue (9MFY26)
      ₹1.20L Cr
      YoY+10%
    • Nine-month EBITDA (9MFY26)
      ₹37,529 Cr
      YoY+18%
    • Net Debt
      ₹60,624 Cr
      YoY-15%

    Q3FY26

    4
    • Quarterly Revenue
      ₹45,899 Cr
      YoY+19%
    • Quarterly EBITDA
      ₹15,171 Cr
      YoY+34%
    • EBITDA Margin
      41%
      YoY+6.3%
    • Quarterly PAT
      ₹7,807 Cr
      YoY+60%

    Guidance & targets

    4
    CategoryTargetPriority
    Annual Performance
    FY26 EBITDA
    $6+ billion
    		High
    Capacity
    Growth Capex
    $1.7 billion
    		High
    Demerger
    Implementation Date
    April 1, 2026
    		High
    Volume
    Alumina Production
    3 million tons
    		High

    Risks & concerns

    4
    RiskSeverity

    Safety Performance

    Lost three colleagues during the year, though overall metrics improved with loss-time injuries down 20% — Other acknowledged

    high

    Demerger Execution Risk

    Multiple regulatory steps required for successful demerger completion and listing — Other acknowledged

    medium

    Commodity Price Volatility

    Aluminum prices ranged between $2,285-$2,736/ton, zinc between $2,521-$3,019/ton with 20% swings — Other acknowledged

    medium

    Oil & Gas Decline Rates

    Base decline reduced from 18% to 13% but still represents ongoing production challenges — Other acknowledged

    medium

    Q&A highlights

    3

    “Post completion, our shareholding in HZL will be around 60.7% from 61.8%. So, about 1.1% will be the stake dilution”

    Confirms specific dilution percentage and maintaining majority control of key subsidiary

    asked by Multiple analysts

    1 min read4 chapters

    Detailed Narrative

    01

    Record Financial Performance Across All Metrics

    Q3FY26 marked Vedanta's strongest quarter ever with lifetime highs in revenue (Rs 45,899 crores), EBITDA (Rs 15,171 crores), and PAT (Rs 7,807 crores). EBITDA margin expanded 629 bps YoY to a record 41%, demonstrating exceptional operational leverage. Nine-month performance was equally strong with record revenue exceeding Rs 1.2 lakh crores and EBITDA of Rs 37,529 crores.

    02

    Operational Excellence Across All Business Segments

    All five business segments delivered strong performance. Aluminum achieved 17-quarter low hot metal costs at $1,674/ton and record production. HZL recorded five-year lowest production cost at $940/MT with highest ever mined and refined metal output. Power business exceeded guidance with Athena achieving 72% PLF. Iron & Steel delivered record nine-month production with pig iron up 11% YoY.

    03

    Transformational Demerger Milestone

    NCLT approved the historic demerger scheme on December 16, 2025, with certified copy received on January 21, 2026. Management is targeting April 1, 2026 as effective date with same-quarter listings. This demerger aims to unlock shareholder value by enabling businesses to sharpen strategies, strengthen balance sheets, and accelerate growth independently.

    04

    Significant Capacity Expansion and Future Growth Pipeline

    Multiple major commissioning achieved including 1.5 MTPA Train 2 at Lanjigarh refinery, first metal from 435,000 TPA BALCO smelter, and 160,000 TPA Debari roaster. FY27 pipeline includes Sijimali bauxite mine, Ghogharpalli coal mines, second 600 MW Athena turbine, and multiple VAB projects totaling significant capacity additions.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.