Earnings Review
Vedanta Q2 PAT plunges on one-time cost, misses Street view
This story was originally published at 16:37 IST on 31 October 2025
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--Vedanta Jul-Sept consol net profit INR 17.98 bln
--Analysts saw Vedanta Jul-Sept consol net profit at INR 36.38 bln
--Vedanta Jul-Sept consol revenue INR 398.68 bln
--Analysts saw Vedanta Jul-Sept consol revenue at INR 380.58 bln
--Vedanta Jul-Sept consol net profit INR 17.98 bln vs INR 43.52 bln year ago
--Vedanta Jul-Sept consol revenue INR 398.68 bln vs INR 376.34 bln year ago
--Vedanta Jul-Sept net profit includes INR 20.67 bln one-time cost
--Vedanta Q2 net profit includes INR 14.07 bln trade receivables write-off
--Vedanta Q2 net profit includes INR 6.60 bln capital creditor settlement
--Vedanta Apr-Sept consol net profit INR 49.83 bln vs INR 79.58 bln year ago
--Vedanta Apr-Sept consol revenue INR 776.92 bln vs INR 733.98 bln year ago
--Vedanta Q2 India consol zinc, lead revenue INR 65.29 bln vs INR 64.03 bln
--Vedanta Q2 India silver revenue INR 17.06 bln vs INR 15.50 bln
--Vedanta Q2 consol aluminium revenue INR 156.71 bln vs INR 137.34 bln
--Vedanta Q2 consol copper revenue INR 66.04 bln vs INR 63.76 bln
--Vedanta Jul-Sept consol EBITDA INR 116.12 bln, up 12% on year
--Vedanta Jul-Sept consol EBITDA margin 34%, up 69 bps on year
--Vedanta net debt INR 620.63 bln on Sept 30
--Vedanta retains FY26 alumina production guidance at 3-3.1 mln tn
--Vedanta retains FY26 aluminium production guidance at 2.5-2.6 mln tn
--Vedanta Jul-Sept total alumina production 653,000 tn, up 31% on year
--Vedanta reiterates FY26 aluminium output cost/tn at $1,700-$1,750
--Vedanta: Q2 EBITDA grew from qtr ago on higher premiums, forex benefit
--Vedanta Jul-Sept aluminium production 617,000 tn, up 1% on year
--Vedanta: Apr-Sept capex $900 mln
--Vedanta Jul-Sept aluminium margin $943/tn vs $827/tn year ago
--Vedanta: Aluminium margin of $943/tn in Jul-Sept highest in 14 quarters
By J. Navya Sruthi
MUMBAI – Vedanta Ltd. reported a sharp fall in its consolidated net profit for the September quarter due to an exceptional loss incurred by the company. It also missed the analysts' net profit estimate by a wide margin. However, the company's revenue grew in mid-single digits and was above the Street's view.
Vedanta reported a nearly 59% year-on-year decline in net profit to INR 17.98 billion, sharply below the analysts' estimates of INR 36.38 billion. During the quarter, the company reported an exceptional loss of INR 20.67 billion in the power segment.
Talwandi Sabo Power Ltd., a wholly owned subsidiary of the company, had recognised a receivable of INR 14.07 billion in respect of a mega power benefit based on its assessment of the case. Pursuant to the Supreme Court of India's judgment on Aug. 19, the matter has been decided against the company's subsidiary. The subsidiary company has filed a review petition, which is currently pending for adjudication, Vedanta said.
The receivable is no longer recoverable and has been written off during the quarter ended September, the company said. This write off INR 14.07 billion and a capital creditor settlement of INR 6.60 billion on the same has led to a one-time cost of INR 20.67 in the quarter, it said. The company reported a net deferred tax of INR 5.20 billion on the expense, taking the net one-time cost to INR 15.47 billion.
The company's consolidated revenue from operations grew by nearly 6% year on year to INR 398.68 billion, exceeding analysts' estimate of INR 380.58 billion. The company said revenue in Jul-Sept was the highest-ever for the second quarter. The other operating income of the company rose by over 40% on year to INR 6.50 billion.
Vedanta's consolidated earnings before interest, tax, depreciation and amortisation rose 12% on year to INR 116.12 billion. The EBITDA margin increased by 69 basis points on year to 34%. The higher EBITDA margin was mainly driven by higher premiums and forex benefit, partially offset by higher costs and lower volumes.
The company's consolidated net profit in Apr-Sept was INR 49.83 billion, down over 37% on year, while revenue during the period was INR 776.92 billion, up nearly 6% on year.
"We delivered 8% YoY EBITDA growth (in Apr-Sep) in a period marked by uncertainties and lower prices of key commodities that we deal with, versus the annual average of FY25. This performance is on the back of our disciplined approach, focusing on volume growth and cost reduction across businesses," the company's Executive Director Arun Misra, said.
Vedanta's capital expenditure during the first half of the year was $900 million. The company's net debt was INR 620.63 billion as of Sept. 30.
SEGMENT-WISE PERFORMANCE
Vedanta's zinc and lead segment revenue from India was INR 65.29 billion in the September quarter, up from INR 64.03 billion in the year-ago period. The company's India silver revenue rose over 10% to INR 17.06 billion during the quarter.
The company's consolidated aluminium revenue was INR 156.71 billion, sharply up from INR 137.34 billion. Consolidated revenue from the copper segment was INR 66.04 billion for the September quarter, slightly up from INR 63.76 billion in the year-ago period.
Vedanta's Jul-Sept total alumina production was up 31% on year at 653,000 tonnes and aluminium production was up 1% on year at 617,000 tonnes. The company's aluminium margin was $943 per tonne in the September quarter, up from $827 a year ago. The aluminium operation margin in Jul-Sept was the highest in 14 quarters, the company said.
Vedanta retained its FY26 guidance for alumina production at 3.0-3.1 million tonnes and aluminium production at 2.5-2.6 million tonnes. The company also maintained its guidance that the FY26 aluminium cost of production is expected to be between $1,700 and $1,750 per tonne. Friday, the company's shares ended at INR 493.55 per share on the National Stock Exchange, down 2.6% from the previous close. End
US$1 = INR 88.77
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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