Vedanta

Vedanta Limited achieved its best-ever financial performance in FY26, with record annual revenue of INR1.74 lac crores, marking a 15% year-on-year growth. EBITDA reached INR56,000 crore, up 29% YoY, and PAT exceeded INR25,000 crore, a 22% increase. The company also generated a robust free cash flow pre-capex of INR26,013 crore, contributing to a strong return on capital employed of 32%.

The de-merger process is in its final stages, with May 1st set as the effective and record date. Shareholders will receive four additional shares for each Vedanta share held, with listing targeted for Q1 FY27. Post-demerger, the company aims for a differentiated capital structure for each of the five entities, with Vedanta Oil & Gas and Iron & Steel expected to be near zero net debt businesses. Vedanta Aluminium will carry approximately $3.5 billion in debt, with a debt-to-EBITDA ratio of 1.3x, while the continuing Vedanta Limited will have $1 billion debt and a 0.4x debt-to-EBITDA ratio.

FY26 saw significant operational milestones, including record alumina production of 2.9 million tons (up 48% YoY) and aluminium production of 2.46 million tons. Zinc India achieved its highest-ever mined metal production of 1.1 million tons and lowest cost of $959 per ton. Zinc International's mined metal production increased 27% to 2,25,000 tons, driven by a 39% rise in Gamsberg volumes. Power sales grew 30% to 16.4 billion units, and the steel unit in Bokaro delivered its highest-ever annual production of 1.3 million tons.

Vedanta deployed INR15,000 crores in growth capital during FY26, marking a new benchmark in project execution. Key projects commissioned include the expansion of the Lanjigarh alumina refinery to 5 million tons per annum, a new 4,35,000-ton smelter at Balco, and new billet lines at Jharsuguda and Balco. The Gamsberg Phase 2 expansion is 94% complete and is expected to be commissioned in the next quarter, with a full ramp-up anticipated within 12-18 months.

The company significantly strengthened its balance sheet, reducing its leverage ratio to 0.95x from 1.22x year-on-year. Vedanta Resources de-leveraged by approximately $1.5 billion, and Vedanta India's balance sheet saw a deleveraging of INR7,370 crores in Q4 FY26. The borrowing cost was brought down to 8.9%, representing a 16% reduction in financing costs, underscoring improved cash flow visibility and strategic financial management.

Vedanta secured bids for 10 critical mineral blocks, including gold, manganese, and other critical minerals, with exploration in three blocks at an advanced stage. The company anticipates being in a decision-making position for these blocks within a year and aims to add three more metals to its bottom line by around 2030. On the ESG front, renewable energy consumption increased by 52% to 3.97 billion units in FY26, leading to a GHG intensity reduction from 6.02 to 5.43 tons of CO2 equivalent per ton of product.

A tragic incident occurred at the Athena power plant in Chhattisgarh on April 14th, involving a boiler in Unit 1, which resulted in the release of pressurized hot water and steam. Vedanta expressed deep condolences and is providing support to affected families. The company is working with authorities to establish facts and prevent re-occurrence, while also focusing on group-wide safety improvements, achieving a 16% reduction in lost time injuries and a 3% decrease in total recordable injury frequency rate in FY26.