Vedanta Limited, one of India’s leading diversified natural resources companies, reported its financial results for the second quarter of FY26, showcasing a mixed performance. While the company’s consolidated net profit before exceptional items declined by 13% year-on-year to ₹5,026 crore, it simultaneously achieved record revenue and EBITDA, driven by strong operational performance in its aluminium and zinc businesses. The board also declared an interim dividend of ₹16 per share, reinforcing its commitment to shareholder returns.
The dip in profit was primarily attributed to higher input costs and forex volatility, although these were partially offset by increased premiums and production volumes. Vedanta’s revenue from operations rose 6% YoY to ₹39,218 crore, while EBITDA surged 12% YoY to ₹11,612 crore, maintaining a healthy margin of 34%.
📊 Vedanta Q2 FY26 Financial Summary
| Metric | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹39,218 crore | ₹37,171 crore | +6% |
| EBITDA | ₹11,612 crore | ₹10,364 crore | +12% |
| EBITDA Margin | 34% | 33.5% | +0.5% |
| Net Profit (Pre-Exceptional) | ₹5,026 crore | ₹5,774 crore | -13% |
| Dividend Declared | ₹16/share | ₹18/share | -11% |
Despite the profit decline, Vedanta’s operational metrics reflect resilience and strategic execution.
🧠 Segment-Wise Performance Breakdown
| Business Segment | Revenue Contribution | Key Highlights |
|---|---|---|
| Aluminium | 38% | Record production, higher premiums |
| Zinc-India | 27% | Improved volumes, cost optimization |
| Oil & Gas | 15% | Stable output, impacted by global prices |
| Power | 10% | Strong PLF, forex gains |
| Iron Ore & Steel | 10% | Mixed performance, price pressure |
The aluminium and zinc segments were the primary growth drivers in Q2.
🧭 Operational Highlights and Strategic Moves
| Initiative | Description | Impact |
|---|---|---|
| Aluminium Capacity Expansion | Ongoing ramp-up at Jharsuguda and BALCO units | Boosts volume and margin |
| Zinc Cost Optimization | Efficiency programs in Rajasthan mines | Enhances profitability |
| ESG Investments | ₹1,200 crore allocated for sustainability | Improves global ratings |
| Digital Transformation | AI-led mining and logistics systems | Reduces operational costs |
Vedanta continues to invest in long-term value creation and operational excellence.
🗣️ Management Commentary
CEO Sunil Duggal stated, “We are proud to report record revenue and EBITDA this quarter, reflecting our focus on operational efficiency and strategic growth. While profit was impacted by macroeconomic headwinds, our core businesses remain strong, and we are committed to delivering value to our stakeholders.”
Chairman Anil Agarwal added, “Vedanta’s performance underscores our resilience and ability to navigate volatility. The ₹16 dividend reflects our confidence in future cash flows and our commitment to shareholders.”
📈 Shareholder Returns and Dividend History
| Fiscal Year | Interim Dividend (₹/share) | Final Dividend (₹/share) | Total Dividend (₹/share) |
|---|---|---|---|
| FY23 | ₹17 | ₹18 | ₹35 |
| FY24 | ₹18 | ₹20 | ₹38 |
| FY25 | ₹16 | TBA | ₹16 (interim only) |
Vedanta remains one of India’s top dividend-paying companies.
🧠 Market Reaction and Analyst Outlook
| Brokerage Firm | Rating | Commentary Summary |
|---|---|---|
| ICICI Securities | BUY | “Strong EBITDA and dividend support valuation.” |
| Motilal Oswal | HOLD | “Profit dip concerning, but long-term outlook stable.” |
| Kotak Institutional | ADD | “Aluminium and zinc segments outperforming expectations.” |
Analysts remain cautiously optimistic, citing Vedanta’s diversified portfolio and strategic investments.
📌 Conclusion
Vedanta’s Q2 FY26 results reflect a company balancing short-term profit pressures with long-term growth and operational strength. The record revenue and EBITDA, coupled with a generous ₹16 dividend, signal confidence in its business fundamentals. As Vedanta continues to expand capacity, optimize costs, and invest in ESG and digital transformation, it remains well-positioned to navigate market volatility and deliver sustained value.
Disclaimer: This article is based on publicly available financial disclosures and management statements. It is intended for informational purposes only and does not constitute investment advice.
