Vedanta Q1 net profit falls 11.7% to ₹3,185 crore on weak LME prices

While revenue rose nearly 6%, lower commodity prices weighed on Vedanta's bottom line; zinc and alumina operations hit record production levels in Q1FY26

Mining major Mining major Vedanta reported an 11.7 per cent year-on-year (Y-o-Y) decline in consolidated net profit to ₹3,185 crore for the April–June quarter of FY26. The fall was attributed largely to subdued prices for key commodities on the London Metal Exchange (LME).  

Despite the profit decline, Vedanta’s revenue from operations rose by 5.8 per cent to ₹37,824 crore in Q1FY26 compared with the same quarter last year.

 

Ajay Goel, Chief Financial Officer, said the new fiscal began amid a volatile macroeconomic environment marked by evolving trade dynamics and geopolitical shifts. “LME prices remained subdued, with most key commodities—barring silver—witnessing Y-o-Y declines,” he said during the earnings call.

 

 

Chairman Anil Agarwal highlighted that the company delivered its highest-ever EBITDA for the first quarter, adding: “Operationally, we achieved the lowest hot metal cost (ex-alumina) in the last 16 quarters, and the lowest-ever Q1 Zinc India cost of production.”

 

Other income, PBIDT flat; dividend and debt update

 

Vedanta’s other income rose 5.5 per cent Y-o-Y to ₹985 crore. Profit before interest, depreciation and tax (PBIDT) remained largely flat at ₹10,903 crore for the June quarter.

 

With a capital expenditure of ₹5,155 crore and a consolidated dividend payout of ₹4,280 crore, Vedanta’s net debt stood at ₹58,220 crore, translating to a net debt/Ebitda ratio of 1.3 times. The company announced an interim dividend of ₹7 per share.

 

Zinc and alumina production hit quarterly records

 

Vedanta’s zinc segment achieved its highest-ever first-quarter mined metal production in India at 265 kilo tonnes (KT), up 1 per cent Y-o-Y. Zinc International’s mined output rose 50 per cent, driven by a 74 per cent increase in production from the Gamsberg mine and record monthly zinc recovery.

 

“The ramp-up of the Lanjigarh refinery to 587 KT demonstrates our progress towards delivering over 3 million tonnes of alumina in FY26,” Agarwal said.

 

Expansion plans for Q2 and H2 to support FY26 outlook

 

Agarwal outlined upcoming milestones for the remainder of FY26, including commissioning Train II at the Lanjigarh refinery, a 435 KT smelter capacity at Balco, and 1,300 MW of new thermal power capacity in Q2.

  Operations at the Sijimali bauxite mine and Kuraloi coal mine are expected to begin in the second half of the fiscal year. “These developments are likely to boost our performance to a record high,” he added. reported an 11.7 per cent year-on-year (Y-o-Y) decline in consolidated net profit to ₹3,185 crore for the April–June quarter of FY26. The fall was attributed largely to subdued prices for key commodities on the London Metal Exchange (LME).  

Despite the profit decline, Vedanta’s revenue from operations rose by 5.8 per cent to ₹37,824 crore in Q1FY26 compared with the same quarter last year.

 

Ajay Goel, Chief Financial Officer, said the new fiscal began amid a volatile macroeconomic environment marked by evolving trade dynamics and geopolitical shifts. “LME prices remained subdued, with most key commodities—barring silver—witnessing Y-o-Y declines,” he said during the earnings call.

 

Chairman Anil Agarwal highlighted that the company delivered its highest-ever EBITDA for the first quarter, adding: “Operationally, we achieved the lowest hot metal cost (ex-alumina) in the last 16 quarters, and the lowest-ever Q1 Zinc India cost of production.” 

 

Other income, PBIDT flat; dividend and debt update

 

Vedanta’s other income rose 5.5 per cent Y-o-Y to ₹985 crore. Profit before interest, depreciation and tax (PBIDT) remained largely flat at ₹10,903 crore for the June quarter.

 

With a capital expenditure of ₹5,155 crore and a consolidated dividend payout of ₹4,280 crore, Vedanta’s net debt stood at ₹58,220 crore, translating to a net debt/Ebitda ratio of 1.3 times. The company announced an interim dividend of ₹7 per share.

 

Zinc and alumina production hit quarterly records

 

Vedanta’s zinc segment achieved its highest-ever first-quarter mined metal production in India at 265 kilo tonnes (KT), up 1 per cent Y-o-Y. Zinc International’s mined output rose 50 per cent, driven by a 74 per cent increase in production from the Gamsberg mine and record monthly zinc recovery.

 

“The ramp-up of the Lanjigarh refinery to 587 KT demonstrates our progress towards delivering over 3 million tonnes of alumina in FY26,” Agarwal said.

 

Expansion plans for Q2 and H2 to support FY26 outlook

 

Agarwal outlined upcoming milestones for the remainder of FY26, including commissioning Train II at the Lanjigarh refinery, a 435 KT smelter capacity at Balco, and 1,300 MW of new thermal power capacity in Q2.

 

Operations at the Sijimali bauxite mine and Kuraloi coal mine are expected to begin in the second half of the fiscal year. “These developments are likely to boost our performance to a record high,” he added.