Vedanta Limited, one of India’s top diversified natural resources companies, has announced its Q1 FY26 results (April–June 2025). Despite challenges from global commodity pricing, the company posted record operational growth in key segments and sustained a strong financial position. Investors are closely watching its strategic moves, especially the ongoing demerger plan and efficiency-focused expansion projects. This article offers a comprehensive look at Vedanta’s Q1 FY26 performance, financials, and outlook for retail investors.
Vedanta Q1 FY26 Results Table
| Metric | Q1 FY26 | Q1 FY25 | QoQ Change | YoY Change |
|---|---|---|---|---|
| Revenue from Operations | ₹37,434 Cr | ₹35,239 Cr | ↓ 6% | ↑ 6.2% |
| Net Profit | ₹3,185 Cr | ₹3,606 Cr | ↓ 8.5% | ↓ 11.7% |
| EBITDA | ₹10,746 Cr | — | — | ↑ 5% |
| EBITDA Margin | 28.7% | — | — | Highest in 13 quarters |
| EPS (Basic) | ₹8.15 | — | — | — |
| Interim Dividend | ₹7/share | — | — | — |
| Net Debt/EBITDA | 1.3x | 1.9x | Improved | Improved |
| Cash & Equivalents | ₹22,137 Cr | — | — | ↑ 33% |
Vedanta Q1 FY26 Revenue & Profit Overview
Vedanta reported a consolidated net profit of ₹3,185 crore, down 11.7% YoY and 8.5% QoQ, mainly due to weaker pricing and lower volumes. Revenue from operations rose to ₹37,434 crore, up 6.2% YoY, though it declined 6% QoQ due to softer commodity prices.
Vedanta Q1 FY26 EBITDA & Margins
The company posted its highest-ever Q1 EBITDA of ₹10,746 crore, up 5% YoY. EBITDA margin reached 28.7%, the highest in the past 13 quarters, driven by improved cost efficiency and operational optimization across business segments.
Vedanta Q1 FY26 EPS & Dividend Declared
- EPS (Basic): ₹8.15
- EPS (Diluted): ₹8.09
- Interim Dividend: ₹7 per equity share (face value ₹1)
This brings the total declared dividend for FY26 so far to ₹7/share.
Vedanta Q1 FY26 Debt Position & Liquidity
- Gross Debt: ₹80,357 crore (as of June 30, 2025)
- Net Debt/EBITDA: Improved to 1.3x from 1.9x in Q1 FY24
- Cash & Equivalents: ₹22,137 crore, up 33% YoY
Vedanta Q1 FY26 Segment Performance
Alumina:
- Record production: 587,000 tonnes (↑36% QoQ)
Zinc India (Hindustan Zinc):
- Record Q1 mined metal production: 265,000 tonnes (↑1% YoY)
- HZL profit down 4.7% YoY to ₹2,234 crore
- Revenue down 4.4% to ₹7,771 crore
Zinc International:
- Production ↑50% YoY, ↑12% QoQ
Iron Ore:
- Saleable ore: 1.8 million tonnes (↑42% YoY)
- Ore production: 108,000 tonnes (↑35% YoY, ↑66% QoQ)
Pig Iron:
- Output ↑4% YoY, ↑40% QoQ
Ferrochrome:
- Output ↑150% QoQ after restarting a second furnace
Steel & Pipes:
- Finished steel: 349,000 tonnes (↓2% YoY)
- Ductile Iron Pipes: Production ↓17% YoY
Strategic Projects & Demerger Plan
- Cost Reductions: 20% YoY cost cut achieved in FY25, trend continues in Q1 FY26
- Capex: ₹12,626 crore in FY25; growth-focused investments continue
- Demerger Progress: NCLT filing complete; five sector-focused entities planned (Aluminum, Oil & Gas, Steel, Power, Base Metals)
- Growth Projects: Lanjigarh expansion and Sijimali Bauxite Mine on track
Expert View on Vedanta Q1 FY26 Results
Arun Misra, Executive Director, emphasized the company’s strategic focus on cost discipline and long-term capacity building. Analysts expect stronger volume-led growth in FY26 from aluminum and zinc operations, along with improved debt metrics.
Hindustan Zinc Q1 FY26 Highlights
- Net Profit: ₹2,234 crore (↓4.7% YoY)
- Revenue: ₹7,771 crore (↓4.4% YoY)
- EBITDA: ₹3,860 crore; 50% margin
- Dividend: ₹10/share declared
- Record mined metal production: 265,000 tonnes
Vedanta Share Price Reaction
Post earnings, Vedanta’s share closed at ₹425.30 on July 31, 2025, down 2%, reflecting mixed investor sentiment on declining profit despite strong operational results.
Conclusion for Retail Investors
Vedanta’s Q1 FY26 results highlight its operational strength, cost control, and solid EBITDA margins despite a decline in net profit. Retail investors should closely monitor progress on the demerger and upcoming capacity expansion projects. While global commodity prices may weigh on short-term earnings, Vedanta’s strategic focus and financial discipline suggest potential for long-term value creation.
Frequently Asked Questions (FAQs)
Q1. What was Vedanta’s Q1 FY26 net profit?
A: ₹3,185 crore, down 11.7% YoY.
Q2. What dividend did Vedanta declare in Q1 FY26?
A: ₹7 per share as interim dividend.
Q3. What is Vedanta’s EBITDA margin in Q1 FY26?
A: 28.7%, the highest in the past 13 quarters.
Q4. How did Hindustan Zinc perform in Q1 FY26?
A: Net profit was ₹2,234 crore, down 4.7% YoY. Mined metal output reached a record 265,000 tonnes.
Q5. Is Vedanta still going through a demerger?
A: Yes, Vedanta plans to split into five independent companies. NCLT approvals are underway.
