Vedanta Iron & Steel Q1 FY27 Results (NSE: VISL)
Signal: Margin expansion
The read
First quarterly report post-demerger shows a sharp operational turnaround: revenue +18% YoY, EBITDA +54% YoY, and PAT swing to ₹121 Cr from -₹146 Cr, driven by Steel margin expansion and 55% lower finance costs. The maiden profit and share listing in June 2026 mark a structural change — sustainability of Steel's EBITDA/kg improvement is the key question.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,662 Cr | 18.3% | -5.2% |
| EBIT | ₹290 Cr | -14.7% | |
| Net profit | ₹121 Cr | 183.4% | |
| EPS | ₹0.31 | 93.8% | |
| EBIT margin | 14.0% |
P&L walk
Revenue growth YoY driven by Steel (+17% segment revenue) and Iron Ore (+15.6% segment revenue); EBITDA margin expanded 332bps YoY as Steel EBITDA surged 74% to ₹336 Cr while finance costs halved; PAT swung from -₹145 Cr to ₹121 Cr.
Segments
Steel segment drove the turnaround: EBITDA rose 74.1% YoY to ₹336 Cr (on segment revenue +16.9%), while Iron Ore EBITDA grew only 26.1% to ₹179 Cr as realisations likely softened; the demerged Iron Ore Undertaking contributed 5 subsidiaries with net losses in Q1FY27.
Key positives
- Consolidated PAT of ₹121 Cr vs loss of ₹145 Cr in Q1FY26 — maiden profit as a listed entity.
- EBITDA margin expanded 332bps YoY to 14.0%, led by Steel segment EBITDA surge of 74% to ₹336 Cr.
- Finance costs halved to ₹207 Cr (down 55% YoY, 53% QoQ), significantly improving interest coverage.
- Segment assets show a healthy ₹14,508 Cr in continuing operations with net debt not disclosed but segment liabilities of ₹6,934 Cr suggest moderate leverage relative to assets.
Key concerns
- Revenue declined 5.2% QoQ from Q4FY26, and EBITDA fell 10% QoQ — sequential softening post strong Q4.
- Iron Ore segment EBITDA margin compressed — EBITDA grew only 26% on 15.6% revenue growth, implying margin pressure.
- Total comprehensive loss of ₹6 Cr (OCI loss of ₹127 Cr offsetting operating profit) — large actuarial/mark-to-market losses in OCI.
- No segment-level volume or realisation data disclosed — cannot assess whether growth is price- or volume-driven.
Research and educational content only. Not investment advice.