Vedanta Q2 FY27 Results (NSE: VEDL)
Signal: Margin expansion
The read
The trajectory remains sharply positive: revenue accelerated to ₹25,812 crore, up 57% YoY and 10% QoQ, while EBITDA rose 106% YoY to ₹9,938 crore and the reported margin expanded 1,055bps to 60% excluding Copper Business; the next test is whether commodity-price and forex support persists as Gamsberg Phase II ramps and Copper International recovers.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹25,812 Cr | 57% | 10% |
| Net profit | ₹6,202 Cr | 151% | |
| EBIT margin | 60% |
P&L walk
Revenue rose 57% YoY to ₹25,812 crore on higher commodity prices, favourable forex and higher volumes; EBITDA grew 106% to ₹9,938 crore and margin expanded to 60% excluding Copper Business, while finance cost fell 9% and PAT increased 151% to ₹6,202 crore.
Segments
Zinc India was the clearest operating driver, with revenue up 76% YoY to ₹14,525 crore, EBITDA of ₹9,243 crore and mined metal production up 5% to 271 kt; Copper International was a drag, with Q2 sales down 74% YoY to 6 kt due to Strait of Hormuz disruption.
Key positives
- Revenue reached a record ₹25,812 crore, up 57% YoY and 10% QoQ, with management attributing growth to higher commodity prices, favourable forex and higher volumes.
- EBITDA increased 106% YoY to ₹9,938 crore and EBITDA margin expanded 1,055bps YoY to 60% excluding Copper Business, with market, regulatory, volume and marketing benefits supporting the improvement.
- Zinc India delivered 271 kt of mined metal production, up 5% YoY, while silver production rose 20% YoY to 173 tonnes and zinc cost of production excluding royalty fell 29% YoY to $703/t.
- Cash flow from operations of ₹7,309 crore helped reduce net debt by ₹4,624 crore QoQ to ₹3,675 crore; net debt/EBITDA improved to 0.1x and cash balances reached ₹26,622 crore.
- Gamsberg Phase II was commissioned, adding 200 ktpa of MIC capacity and taking Zinc International's total capacity to 500 ktpa.
Key concerns
- Zinc International mined metal production declined 12% YoY to 53 kt, while H1 production fell 13% YoY to 102 kt despite Gamsberg Phase II commissioning and stabilization.
- Copper International sales declined 74% YoY to 6 kt, with the filing attributing the disruption to closure of the Strait of Hormuz; management is targeting a 20+ kt quarterly run rate by Q3FY27.
- The 60% EBITDA margin is explicitly stated to exclude the Copper Business, limiting direct comparability with a group-wide margin and making Copper International's recovery important for consolidated operating normalization.
- Depreciation rose 19% YoY to ₹1,339 crore as higher ore production came online, while ongoing growth projects include significant unspent approved capex such as ₹10,607 crore for Zinc India's integrated zinc smelter.
Research and educational content only. Not investment advice.