Vedanta Aluminium Metal Q2 FY27 Results (NSE: VAML)
Signal: Margin expansion
The read
The trajectory remains strongly positive: revenue reached ₹22,066 Cr, up 41% YoY, and EBITDA rose 83% to ₹10,192 Cr with a 1056bps margin expansion, supported by record 649 KT aluminium production and 31% YoY growth in value-added output. The key inflection is balance-sheet quality, with net debt down ₹3,090 Cr QoQ and net debt/EBITDA improving to 0.7x, although EBITDA margin moderated 356bps QoQ as LME prices softened and PAT was reduced by a ₹363 Cr exceptional charge.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹22,066 Cr | 41% | 5% |
| Net profit | ₹6,187 Cr | 105% | |
| EBIT margin | 46% |
P&L walk
Revenue rose 41% YoY on higher volumes and improved marketing mix; EBITDA grew 83% to ₹10,192 Cr with margin expanding 1056bps YoY despite a 3% QoQ decline, while PAT rose 105% to ₹6,187 Cr after a ₹363 Cr exceptional charge.
Segments
BALCO contributed ₹2,970 Cr of EBITDA, up 57% YoY, while Vedanta Aluminium contributed ₹7,229 Cr, up 96% YoY; the parent operating business therefore supplied the larger incremental EBITDA uplift despite both units growing.
Key positives
- Revenue reached ₹22,066 Cr, up 41% YoY and 5% QoQ, supported by higher volumes and improved marketing mix.
- EBITDA rose 83% YoY to ₹10,192 Cr versus revenue growth of 41%, a +42 percentage-point growth gap; depreciation grew 15% YoY and finance cost declined 4% YoY, while EBITDA margin expanded 1056bps YoY to 46%.
- Aluminium production reached a record 649 KT, up 5% YoY and 3% QoQ, while value-added production rose 31% YoY to 432 KT, improving product mix.
- Alumina production rose 37% YoY to a record 895 KT, strengthening vertical integration and utilization of the refinery base.
- Net debt fell ₹3,090 Cr QoQ to ₹26,442 Cr, reducing net debt/EBITDA from 0.9x to 0.7x; cash and cash equivalents stood at ₹6,318 Cr.
- Hot metal cost of production declined 6% YoY to $1,722/T despite softer LME prices, indicating improved cost competitiveness.
Key concerns
- EBITDA margin declined 356bps QoQ to 46% as sequential LME prices softened; EBITDA also fell 3% QoQ to ₹10,192 Cr despite 5% revenue growth.
- Reported PAT of ₹6,187 Cr included a ₹363 Cr exceptional charge net of tax; PAT before exceptional items was ₹6,550 Cr, up 117% YoY versus reported PAT growth of 105%.
- Net debt reduction was accompanied by a ₹7,620 Cr working-capital outflow in the Q2 cash-flow walk, which bears monitoring as production and expansion scale.
- Aluminium CoP increased 1% QoQ to $1,722/T, despite declining 6% YoY, while BALCO’s rupee CoP increased 7% YoY to ₹170,370/T.
Research and educational content only. Not investment advice.