Vedanta Q1 FY27 Results (NSE: VEDL)
Signal: Margin expansion
The read
Vedanta's Q1FY27 results reflect a clean break from the demerger: continuing operations delivered a stellar performance with revenue up 53.6% YoY and EBITDA margin expanding 790 bps to 35.0%, driven by the high-margin Zinc & Silver business (EBITDA margin 62.3%). Copper remained marginal. The demerger simplified the structure, leaving a leaner, more profitable metals portfolio. The only overhang is the ongoing regulatory investigation (short seller report) as noted by auditors.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹24,205 Cr | 53.6% | -1.6% |
| EBIT | ₹7,277 Cr | 131.0% | |
| Net profit | ₹5,294 Cr | 151.8% | |
| EPS | ₹7.95 | 157.3% | |
| EBIT margin | 35.0% |
P&L walk
Continuing operations revenue grew 53.6% YoY to ₹24,205 Cr, driven by strong Zinc & Silver volumes and prices. EBITDA margin expanded 790 bps to 35.0% as cost of materials as % of revenue improved from 40.2% to 35.8%. Net profit more than doubled on operational leverage and stable finance costs.
Segments
Zinc, Lead and Silver - India remains the key profit engine, contributing ₹8,096 Cr (95.6% of segment EBITDA) with a 62.3% margin. Copper is near breakeven (EBITDA ₹11 Cr), while International Zinc EBITDA improved to ₹250 Cr. Discontinued operations contributed only one month (April 2026) and are excluded from the ongoing business.
Key positives
- Continuing operations revenue grew 53.6% YoY to ₹24,205 Cr, driven by higher zinc, lead, and silver volumes and prices.
- EBITDA margin expanded 790 bps YoY to 35.0%, with Zinc India segment posting 62.3% margin.
- Net profit from continuing operations surged 151.8% YoY to ₹5,294 Cr, with EPS of ₹7.95.
- Demerger completed effectively May 1, 2026, simplifying the corporate structure and isolating high-growth metals business.
Key concerns
- Copper segment remains marginal with EBITDA of only ₹11 Cr on revenue of ₹8,538 Cr, indicating low profitability.
- Continuing operations revenue declined 1.6% QoQ, though partly seasonal.
- Auditor draws attention to ongoing investigations by regulatory authorities related to short seller report; though management provided details, uncertainty remains.
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