Why Did Vedanta’s Q1 Net Profit Decline by 12.5%?
Click to start listening
Synopsis
Vedanta Limited's financial performance in Q1 FY26 shows a notable dip in net profit yet an increase in revenue. Discover the key insights from this earnings release and what it means for the company's future!
Key Takeaways
- Net Profit Decline: 12.5% drop YoY to Rs 4,457 crore.
- Revenue Growth: Operations revenue up by 5.8% to Rs 37,824 crore.
- Total Income: Increased by 5.7% to Rs 38,809 crore.
- EBITDA Stability: EBITDA remains at Rs 9,918 crore with a margin dip.
- Stock Reaction: Shares down by 2.28% post-announcement.
Mumbai, July 31 (NationPress) Vedanta Limited announced a 12.5% year-on-year (YoY) decrease in its consolidated net profit for the quarter ending June 30 (Q1 FY26), reporting Rs 4,457 crore compared to Rs 5,095 crore from the same period last year (Q1 FY25).
Despite this profit decline, the company saw a 5.8% increase in revenue from operations, totaling Rs 37,824 crore in the April–June quarter, up from Rs 35,764 crore the previous year, as revealed in a filing to the Bombay Stock Exchange (BSE).
Total income also climbed by 5.7% to reach Rs 38,809 crore, up from Rs 36,698 crore a year prior.
However, total expenses rose to Rs 32,756 crore in the June quarter, up from Rs 30,772 crore in the same period last year.
Meanwhile, earnings before interest, taxes, depreciation, and amortization (EBITDA) remained relatively stable at Rs 9,918 crore, though margins decreased to 26.20% from 27.80% a year ago.
Following the announcement of these results, Vedanta's shares encountered a decline, trading down by 2.28% or Rs 9.9 at Rs 424.7 per share on the National Stock Exchange (NSE) around 3 p.m.
Anil Agarwal, Chairman of Vedanta, stated, “Our Q1 performance lays a robust groundwork for the upcoming year. Despite global market fluctuations, we achieved our highest-ever first-quarter EBITDA.”
Ajay Goel, CFO of Vedanta, mentioned, “Our adjusted PAT saw a 13% YoY growth to reach Rs 5,000 crore. This impressive performance, along with corporate actions like the HZL stake sale that generated Rs 3,028 crore in cash, has allowed Vedanta to maintain a Net Debt to EBITDA ratio of 1.3x.”
Vedanta Limited, a subsidiary of Vedanta Resources Limited, is engaged in the natural resources sector, focusing on critical minerals, energy, and technology. Its operations span across various countries including India, South Africa, Namibia, Liberia, the UAE, Saudi Arabia, Korea, Taiwan, and Japan, with significant activities in oil and gas, zinc, lead, silver, copper, iron ore, and steel.
Point of View
It is essential to analyze Vedanta's latest financial results with an unbiased lens. While the decline in net profit raises concerns, the increase in revenue suggests potential resilience in operations. Stakeholders should consider these factors when evaluating the company’s future trajectory.
NationPress
21/09/2025
Frequently Asked Questions
What caused Vedanta’s net profit to fall in Q1 FY26?
Vedanta’s net profit fell due to increased expenses despite a rise in operational revenue.
How did Vedanta's revenue perform in Q1 FY26?
The company’s revenue from operations increased by 5.8% to Rs 37,824 crore.
What is Vedanta’s EBITDA for Q1 FY26?
Vedanta's EBITDA remained stable at Rs 9,918 crore.
How did Vedanta’s shares react after the announcement?
Vedanta shares fell by 2.28% to Rs 424.7 following the results announcement.
Where does Vedanta operate?
Vedanta has operations in various countries, including India, South Africa, and Japan.
