Vedanta Aluminium earnings more than doubled in the September 2026 quarter, with consolidated net profit rising 105% year on year to ₹6,187 crore. Revenue increased 41% to ₹22,066 crore as the company reported record aluminium production.
Key Takeaways
- Vedanta Aluminium attributed the annual improvement to higher production, a better sales mix, favourable currency movements and lower production costs.
- Consolidated net debt fell to ₹26,442 crore at September 30 from ₹29,532 crore at the end of June.
Vedanta Aluminium earnings and margins
The company reported EBITDA of ₹10,192 crore, up 83% from a year earlier and its second consecutive quarter above ₹10,000 crore. Its EBITDA margin widened to 46% from 36% a year earlier.
Profit before exceptional items rose 117% year on year to ₹6,550 crore. The September quarter included an exceptional charge of ₹363 crore, net of tax.
Despite the annual gains, net profit fell 6% and EBITDA declined 3% from the preceding quarter. In its June-quarter results, the company reported profit of ₹6,597 crore and EBITDA of ₹10,499 crore. September-quarter revenue rose 5% sequentially, while the margin eased from 50%.
| Item | Details |
|---|---|
| Net profit | ₹6,187 crore, versus ₹3,012 crore a year earlier |
| Revenue from operations | ₹22,066 crore, versus ₹15,670 crore a year earlier |
| EBITDA | ₹10,192 crore, versus ₹5,582 crore a year earlier |
Record output and lower annual costs
Quarterly aluminium production reached a record 649,000 tonnes, up 5% from 617,000 tonnes a year earlier. Jharsuguda produced 470,000 tonnes, while BALCO output rose 19% to 178,000 tonnes.
Value-added aluminium production increased 31% to a record 432,000 tonnes. Alumina output at the Lanjigarh refinery also reached a quarterly record of 895,000 tonnes, up 37%.
Aluminium production costs fell 6% year on year to $1,722 per tonne, although they rose 1% from the June quarter. The benchmark London Metal Exchange aluminium price averaged $3,226 per tonne, compared with $2,618 a year earlier.
Expansion plans and debt
Vedanta Aluminium brought the second zone of BALCO’s 435,000-tonne annual capacity expansion into operation and obtained consent to operate the Sijimali bauxite mine.
The company expects domestic bauxite to account for more than 90% of its raw material mix by the end of FY27, compared with 37% in the September quarter. It also targets more than one million tonnes of alumina production at Lanjigarh in the December quarter.
At September 30, gross debt stood at ₹32,800 crore and cash and cash equivalents at ₹6,318 crore. The net debt-to-EBITDA ratio declined to 0.7 times from 0.9 times at the end of June.
Next milestone
The next operational milestone to watch is the company’s target of more than one million tonnes of alumina production at Lanjigarh in the December quarter.
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