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Vedanta Aluminium Metal Hits Record Highs with 632 KT Production in Q1 FY27

Posted On : 2026-07-03 21:57:13( TIMEZONE : IST )

Vedanta Aluminium Metal Limited (VAML), India's largest aluminum producer, has marked its first full quarter since demerging from Vedanta Limited with record-breaking operational metrics. The company achieved its highest-ever quarterly aluminum production and value-added product output during the first quarter of the 2027 financial year.

Although the corporate demerger formally took effect on May 1, 2026, the performance release encapsulates full-quarter figures (April to June) to ensure meaningful market analysis.

Record-Breaking Aluminum and Alumina Outputs

The company's primary manufacturing units saw widespread volume expansion driven by new capacity additions and operational efficiencies:

Record Aluminum Volume: Total aluminum production reached 632,000 tonnes (KT), logging a 5% increase year-over-year (YoY) and a 3% expansion sequentially against the previous quarter.

Smelter Performance: The growth was heavily supported by the company's iconic Bharat Aluminium Company (BALCO) asset, which jumped 17% YoY to yield 168,000 tonnes. This includes 24,000 tonnes from a new smelter facility that is currently undergoing trial phases. The company's massive facility at Jharsuguda, Odisha, held steady, contributing 464,000 tonnes.

Value-Added Products (VAP): Reflecting a strategic shift toward premium product mixes, VAML hit an all-time high VAP output of 389,000 tonnes, up 14% compared to Q1 FY26.

Alumina Production: The company's refining arm manufactured 826,000 tonnes of alumina, marking a massive 41% YoY leap due to structural plant expansions. However, output softened 6% sequentially from March 2026 due to brief, unplanned maintenance shutdowns.

BALCO Power Sales: External power sales from BALCO's captive units grew 21% YoY to reach 520 million units.

Upstream Supply Chain and Mining Approvals

To support its massive smelting assets, VAML secured critical regulatory milestones that drastically insulate its upstream raw material supply chain:

Bauxite Security: The Ministry of Environment, Forest and Climate Change (MoEF&CC) has officially granted both the Environment Clearance and Stage II Forest Clearance for the Sijimali Bauxite Block, paving the way for advanced mining operations.

Coal Integration: The company successfully executed the formal Mining Lease for the Kuraloi (A) North Coal Block. Additionally, it secured the critical Mine Opening Permission in June, allowing it to feed its captive power units internally.

Management highlighted that the ongoing BALCO expansion project remains on track, with capacity systematically scaling up to reach full utilization rates by the fourth quarter of FY27.