Stock Report

Vedanta Aluminium Reports Exceptional Debut: Net Profit Surges 205% Year-on-Year to ₹6,597 Crore; Board Declares Maiden Interim Dividend

Posted On : 2026-07-31 13:08:49( TIMEZONE : IST )

Marking an exceptional financial and operational debut as an independent listed entity following its demerger, Vedanta Aluminium Metal Limited (BSE: 544780 & NSE: VAML), India's largest aluminium producer, has announced its unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27). The company delivered record-breaking performance across revenue, operational EBITDA, and net profit, supported by all-time high production volumes, margin expansion, and cost efficiencies.

Landmark Financial Performance

For Q1 FY27, Vedanta Aluminium achieved its highest-ever consolidated revenue from operations of ₹21,105 crore, registering a 45% year-on-year (YoY) increase compared to ₹14,557 crore in Q1 FY26. Sequentially, operational revenue expanded 13% quarter-on-quarter (QoQ) from ₹18,753 crore in Q4 FY26, driven by higher sales volumes, enhanced marketing contribution, and favorable market price realisations.

Operating EBITDA for the quarter surged 134% YoY and 24% QoQ to reach a record ₹10,499 crore, against ₹4,479 crore in Q1 FY26 and ₹8,475 crore in Q4 FY26. Operating EBITDA margin expanded significantly by 1,897 basis points YoY and 455 basis points QoQ to a best-ever 50% (up from 31% in Q1 FY26 and 45% in Q4 FY26), reflecting superior cost efficiency, higher value-added product (VAP) mix, and operational integration.

Profit Before Tax (PBT) for the quarter stood at ₹8,832 crore, up 205% YoY from ₹2,893 crore in Q1 FY26 and 33% QoQ over ₹6,638 crore in Q4 FY26.

After accounting for a tax charge of ₹2,235 crore, Profit After Tax (PAT) more than tripled, zooming 205% YoY and 33% QoQ to ₹6,597 crore compared to ₹2,162 crore in Q1 FY26 and ₹4,958 crore in Q4 FY26.

(Note: While Vedanta's demerger became effective from May 1, 2026, the financial figures reported reflect the complete performance for the full quarter from April to June 2026).

Cost Structure and Financial Expenses

Depreciation & Amortisation: Stood at ₹775 crore, up 11% YoY from ₹701 crore and up 3% QoQ from ₹751 crore, reflecting ongoing asset capitalisation.

Finance Cost: Totaled ₹1,001 crore, remaining flat YoY (against ₹1,000 crore in Q1 FY26) and increasing 9% QoQ from ₹922 crore.

Investment Income: Came in at ₹158 crore, up 59% YoY compared to ₹100 crore in Q1 FY26.

Foreign Exchange & Others: Stood at -(₹49) crore, compared to ₹14 crore in Q1 FY26 and ₹25 crore in Q4 FY26.

Exceptional Items: Nil for the quarter (compared to -₹349 crore in Q4 FY26).

Record Operations and Production Milestones

The company achieved structural operational records across its integrated value chain during the quarter:

Aluminium Production: Reached an all-time high of 632 KT, representing a 5% YoY and 3% QoQ increase.

Value-Added Products (VAP): Production achieved a record 389 KT, growing 14% YoY and 4% QoQ.

Alumina Production: Totaled 826 KT, registering a sharp 41% YoY increase, supported by enhanced refining capacity and asset utilisation.

Deleveraging, Credit Rating Upgrade, and Maiden Dividend

Vedanta Aluminium further strengthened its balance sheet during the quarter through active deleveraging, bringing its Net Debt to EBITDA ratio down to 0.9x, an improvement from 1.3x in Q4 FY26.

Underlining its robust balance sheet and operational trajectory, the company received credit rating upgrades to AA+ (Stable) from both CRISIL and ICRA.

Recognising the company's strong cash generation and operational performance, the Board of Directors approved a maiden interim dividend of ₹8 per equity share.

Commenting on the company's Q1 performance, Mr. Rajesh Kumar, Whole-Time Director & CEO, Vedanta Aluminium, said, "We have commenced our new, independent chapter with robust operational and financial performance in this quarter, reflecting the success of our approach which merges business resilience, disciplined execution, and a long-term vision. In an increasingly dynamic geopolitical environment, our strategic focus on resource security, operational integration, and value-added products continues to strengthen our competitive position while enhancing our ability to deliver sustainable growth. Through this effort, we are systematically building a future-ready enterprise by creating enduring value for stakeholders, strengthening cost leadership, and shaping a globally competitive aluminium business."

Mr. Anup Agarwal, CFO, Vedanta Aluminium, said, "Our inaugural quarter as an independent company marks a strong start, with record revenue at ₹21,105 crore, EBITDA at ₹10,499 crore, and PAT at ₹6,597 crore. We enter this phase from a position of robust financials, with a strengthened balance sheet and improved credit profile, offering increased flexibility for our strategic growth ambitions. As one of the world's leading aluminium producers, we aim to cater to the accelerating demand from energy transition, infrastructure, transportation, packaging, and advanced manufacturing sectors across India and global markets through our integrated value chain and expanding value-added portfolio."