Vedanta Iron and Steel posts ₹324 crore net loss in Q2 FY27
Synopsis
Vedanta Iron and Steel swung from a ₹121 crore profit to a ₹324 crore loss in a single quarter, with EBITDA cratering 90.55% to just ₹48 crore. Both its iron ore and steel segments saw steep revenue and margin declines in Q2 FY27, even as the company managed a 32% improvement on a year-on-year basis — a mixed scorecard that leaves its recovery timeline uncertain.
Key Takeaways
Vedanta Iron and Steel posted a consolidated net loss of ₹324 crore in Q2 FY27 (quarter ended September 2026), versus a profit of ₹121 crore in Q1 FY27.
EBITDA plummeted 90.55 per cent quarter-on-quarter to ₹48 crore ; EBITDA margin narrowed to 1.7 per cent from 13.9 per cent .
Revenue from operations fell 23.87 per cent QoQ to ₹2,788 crore .
Iron ore segment revenue halved to ₹638 crore ; steel segment revenue declined to ₹2,488 crore from ₹2,839 crore .
Year-on-year, the net loss improved by 32.08 per cent from ₹477 crore in Q2 FY26.
Shares closed at ₹27.95 , up 5 per cent on the day, but have lost 14.73 per cent over the past month.
Vedanta Iron and Steel slipped to a consolidated net loss of ₹324 crore in the quarter ended September 2026 (Q2 FY27), reversing a net profit of ₹121 crore posted in the preceding June quarter (Q1 FY27), according to its stock exchange filing. The sharp swing underscores a significant deterioration in operating conditions across both its iron ore and steel businesses.
Revenue and Operating Performance
Revenue from operations declined 23.87 per cent quarter-on-quarter to ₹2,788 crore, from ₹3,662 crore in Q1 FY27. The erosion was even more pronounced at the operating level: earnings before interest, tax, depreciation and amortisation (EBITDA) collapsed 90.55 per cent to ₹48 crore from ₹508 crore in the June quarter, compressing the EBITDA margin to just 1.7 per cent from 13.9 per cent three months earlier.
Year-on-Year Context
On an annual basis, the picture is comparatively less grim. The company trimmed its consolidated net loss by 32.08 per cent from ₹477 crore reported in Q2 FY26. Revenue from operations also edged down only 2.45 per cent from ₹2,858 crore a year ago, while total expenses fell 9.51 per cent to ₹3,129 crore from ₹3,458 crore, per the regulatory filing. This cost discipline has provided a partial cushion against the top-line pressure.
Segment Breakdown: Iron Ore and Steel Both Weaken
The iron ore segment bore the brunt of the quarter's slowdown. Revenue fell sharply to ₹638 crore in Q2 from ₹1,190 crore in Q1, while segment EBITDA contracted to ₹10 crore from ₹179 crore. The steel segment was similarly under pressure: revenue declined to ₹2,488 crore from ₹2,839 crore, and segment EBITDA dropped to ₹73 crore from ₹336 crore in the preceding quarter.
Notably, the company recorded an exceptional gain of ₹11 crore after the Maharashtra State Infrastructure Development Corporation acquired 7,200 square metres of company-owned land in Nashik for the proposed Ring Road Project. Without this one-time item, underlying losses would have been modestly wider.
Stock Performance
Shares of Vedanta Iron and Steel ended Tuesday's session at ₹27.95, up 5 per cent or ₹1.33 on the day — a session-specific bounce that analysts often attribute to buy-the-news activity around earnings disclosures. Over longer horizons, however, the stock remains under significant pressure, having declined 3.35 per cent in the past week, 14.73 per cent over the last month, and 7.91 per cent over the past three months.
With domestic steel demand facing headwinds and iron ore realisations under pressure, the company's ability to restore EBITDA margins to double digits will be closely watched in the quarters ahead.
Point of View
Likely compounded by elevated input costs and softer domestic demand for both iron ore and steel. What is striking is the divergence between the year-on-year improvement (loss narrowed by 32 per cent) and the quarter-on-quarter freefall, suggesting Q1 FY27 was an anomalous peak rather than a sustainable base. The stock's 5 per cent day-session gain in the face of these numbers looks more like technical relief than fundamental conviction. With EBITDA margins at 1.7 per cent, the company has virtually no operating buffer — any further softening in steel prices or a spike in coking coal costs could push it deeper into the red.
NationPress
27 Oct 2026
Frequently Asked Questions
What was Vedanta Iron and Steel's net loss in Q2 FY27?
Vedanta Iron and Steel reported a consolidated net loss of ₹324 crore in Q2 FY27 (quarter ended September 2026), compared with a net profit of ₹121 crore in the preceding June quarter. On a year-on-year basis, the loss narrowed by 32.08 per cent from ₹477 crore in Q2 FY26.
Why did Vedanta Iron and Steel's EBITDA fall so sharply?
EBITDA dropped 90.55 per cent quarter-on-quarter to ₹48 crore from ₹508 crore in Q1 FY27, driven by steep revenue declines in both the iron ore and steel segments. The EBITDA margin shrank to 1.7 per cent from 13.9 per cent in the previous quarter, reflecting significant pressure on operating efficiency and realisations.
How did the iron ore and steel segments perform in Q2 FY27?
Iron ore segment revenue more than halved to ₹638 crore from ₹1,190 crore in Q1, with segment EBITDA falling to ₹10 crore from ₹179 crore. The steel segment also weakened, with revenue declining to ₹2,488 crore from ₹2,839 crore and segment EBITDA dropping to ₹73 crore from ₹336 crore.
What was the exceptional item in Vedanta Iron and Steel's Q2 results?
The company recorded an exceptional gain of ₹11 crore after the Maharashtra State Infrastructure Development Corporation acquired 7,200 square metres of company land in Nashik for the proposed Ring Road Project.
How has Vedanta Iron and Steel's stock performed recently?
Shares closed at ₹27.95 on Tuesday, up 5 per cent on the day. However, the stock has declined 3.35 per cent over the past week, 14.73 per cent over the past month, and 7.91 per cent over the past three months, reflecting sustained investor concern.
