Analyst Concall
Parent co's deleveraging completed to large extent - Vedanta
This story was originally published at 22:48 IST on 30 July 2026
Register to read our real-time news.Informist, Thursday, Jul. 30, 2026
Please click here to read all liners published on this story
--Vedanta: Silver continued to contribute strongly to India Zinc's Q1 EBITDA
--CONTEXT: Comments by mgmt of Vedanta in post-earnings analyst call
--Vedanta:Parent Vedanta Resources' deleveraging completed to a large extent
--Vedanta: Phase 1 debottlenecking raised capacity in copper India ops Q1
--Vedanta: Brand fees to Vedanta Resources fixed for 3 yrs till Mar 2029
--Vedanta:FY27 growth capex aim INR 70 bln, of which INR 50 bln in zinc India
--Vedanta Aluminium:Global aluminium prices up on supply chain constraints
--CONTEXT:Comments by Vedanta Aluminium's mgmt in post-earnings analyst call
--Vedanta Aluminium: To meet FY27 alumina output aim of 4 mln tn from Lanjigarh
--Vedanta Aluminium: Expect FY27 consol capex to be INR 50 billion
--Vedanta Oil & Gas: Higher commodity prices supported Q1 performance
--CONTEXT: Comments by Vedanta Oil & Gas' mgmt in post-earnings analyst call
--Vedanta Oil & Gas: Q1 volumes lower YoY on natural decline in output
--Vedanta Power:Replacing imported with Indian coal helped Meenakshi ops cost
--Vedanta Power: Sakti plant revival going on, expect it complete by Q2 end
By Rajesh Gajra and Shweta
MUMBAI/NEW DELHI – The group-level deleveraging exercise at parent Vedanta Resources Ltd. is largely accomplished, the management of Vedanta Ltd. said at a post-earnings conference call with investors and analysts Thursday. The net debt at Vedanta Resources, excluding Vedanta India entities, was $4.8 billion as of June end, as per the post-earnings investor presentation.
In the remainder of the financial year 2026-27 (Apr-Mar), "the need for cash" at Vedanta Resources is about $400 million, which "will be met mostly through dividends" from the India entities, a senior official of Vedanta said. Vedanta Resources has 56.4% stake in each of Vedanta, Vedanta Aluminium Metal Ltd., Vedanta Iron and Steel Ltd., Vedanta Oil and Gas Ltd., and Vedanta Power Ltd. after the recent demerger.
In the June quarter, Vedanta Resources had deleveraged by $1.1 billion at the group level, as per the post-earnings press release. Vedanta Resources has currently got $1 billion bridge financing, but it is a temporary arrangement, the official said.
On brand fees agreement between Vedanta Resources and the five listed India subsidiaries, the official said these are long-term contracts and "all the five companies... (have) again now done a revised benchmarking in an unbundled format". Barring the power and copper businesses, for the other businesses the brand fee rate is 3%, he said. For power and copper businesses, the brand fee rate is 0.75%, he said. These brand fee rates will remain unchanged until the end of March 2029, according to the official.
As per Vedanta's annual report for FY26, the group companies, which included the other four subsidiaries of parent Vedanta Resources, recorded an expense of INR 27.27 billion for the year towards payments under the brand licence and strategic service fee agreement with the parent "for the use of brand 'Vedanta' and providing strategic services".
On the capital expenditure plan for Vedanta Ltd., including its subsidiary Hindustan Zinc Ltd. and other businesses in international zinc, copper, and ferrochrome, the management said the growth capital expenditure for FY27 is INR 70 billion, of which INR 50 billion is for India zinc operations under Hindustan Zinc. In addition, there will be a maintenance capital expenditure of INR 40 billion for FY27, of which 70% will be for the India zinc operations.
In the India zinc operations, the silver segment continued to contribute strongly to Vedanta's bottom line "with 46% share of EBITDA", according to the management. The silver sales volume was flat on year for the quarter at 149 tonnes. The total EBITDA of the India zinc operations of the company for the June quarter was INR 80.96 billion, up 2.2 times on year.
In the India copper operations of Vedanta, the "phase 1 of debottlenecking has augmented installed capacity" and further debottlenecking will raise it more, a senior official said.
In the investor call, a senior official of Vedanta Aluminium said global aluminium prices remained buoyant in the June quarter supported by supply-side constraints. The company has set a target of growth capital expenditure for FY27 of INR 50 billion and an additional INR 20 billion for maintenance, he said. This will include the capital expenditure incurred for operations of its subsidiary, Bharat Aluminium Co. Ltd., in which it holds 51% stake.
On the ramping up of production at the alumina refinery in Lanjigarh, Odisha, the Vedanta Aluminium management said it will meet the target of 4 million tonnes of production in FY27 from the refinery.
The management of Vedanta Oil and Gas said in the post-earnings investor call that higher commodity prices supported the company's June quarter performance. Responding to questions from analysts, a senior official said the company's "unit operating cost for the period was $17.4 per barrel, down 3% quarter-on-quarter basis despite the production decline and the lower base". The lower cost was driven by efficiencies and optimisation, the official said.
The management of Vedanta Power indicated that 26% of the revival of its Sakti thermal plant in Chhattisgarh has been completed with a contractor working there from a month ago. "We are expecting to start the unit by end of September or first week of October," a senior official said.
On the effect of rise in coal prices, the Vedanta Power management said the company was able to contain coal costs in the June quarter on a year-on-year basis despite a surge of 60% in the price of imported coal. "This was achieved by replacing imported coal with Indian coal and this time the team was able to consume around 65-70% of Indian coal in their operations," a senior official said.
The management of Vedanta Iron and Steel told investors in the post-earnings conference call that the company's expansion projects continue to progress as planned. A senior official said the EBITDA margin was lower sequentially "due to higher discounts on low-grade ore and elevated ocean freight cost".
Earlier in the day, Vedanta and Vedanta Aluminium detailed their June quarter earnings. Vedanta reported a consolidated net profit of INR 54.73 billion on revenues of INR 242.05 billion. Thursday, shares of Vedanta ended at INR 267.50 on the National Stock Exchange, up 1.1% from Wednesday.
Vedanta Aluminium's consolidated net profit was INR 56.29 billion on revenues of INR 213.93 billion. Shares of the company closed at INR 457.05 on the NSE, up almost 4% from the previous close.
Wednesday, Vedanta Power reported a consolidated net loss of INR 4.23 billion for the Apr-Jun period, even as its revenues were at INR 26.07 billion. Thursday, shares of the company ended at INR 33.82 on the NSE, down 4.3% from the previous close.
For the June quarter, Vedanta Oil and Gas reported Wednesday a consolidated net profit of INR 9.45 billion on revenues of INR 25.07 billion. The company's shares closed at INR 33.64 on the NSE Thursday, down 4.1% from the previous close.
Vedanta Iron and Steel also announced its Apr-Jun earnings Wednesday. Its consolidated bottom line was at INR 1.22 billion and top line at INR 36.62 billion. Shares of the company ended marginally lower on the NSE Thursday at INR 30.75. End
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
