Vedanta Iron & Steel Q2 FY27 Results (NSE: VISL)
Signal: Loss narrowed
The read
The Q2 inflection is negative: consolidated revenue fell 2.4% YoY to ₹2,788 Cr and EBITDA margin slipped to 3.0% QoQ from 14.3%, while finance costs rose 298% YoY to ₹171 Cr and pushed PAT to a ₹324 Cr loss after a ₹121 Cr profit in Q1FY27. Steel stayed profitable at ₹73 Cr EBITDA, but the group recovery remains dependent on restoring Iron Ore profitability and containing financing costs.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,788 Cr | -2.4% | -23.9% |
| Net profit | ₹-324 Cr | loss narrowed 34.4% | |
| EPS | ₹-0.8 | loss narrowed 32.8% | |
| EBIT margin | 3.0% |
P&L walk
Revenue declined to ₹2,788 Cr, while EBITDA was ₹83 Cr and finance costs rose to ₹171 Cr; the group therefore reported a ₹324 Cr loss after a ₹494 Cr loss a year earlier, with a ₹37 Cr exceptional charge adding to the pressure.
Segments
Steel was the main operating support at ₹73 Cr EBITDA versus a ₹59 Cr loss YoY, while Iron Ore EBITDA fell to ₹10 Cr from ₹113 Cr YoY; the group-level loss therefore reflects the Iron Ore slowdown, finance costs and corporate charges despite the Steel turnaround.
Key positives
- Steel segment EBITDA turned positive at ₹73 Cr versus a ₹59 Cr loss YoY, supporting the consolidated operating result.
- Gross margin expanded by approximately 660bps YoY as cost of materials consumed fell to 61.5% of revenue from 54.9%.
- Operating cash flow was positive at ₹753 Cr in H1FY27 versus a ₹622 Cr outflow in H1FY26.
Key concerns
- Revenue declined 2.4% YoY to ₹2,788 Cr and 23.9% QoQ, while segment EBITDA margin fell to 3.0% from 14.3% QoQ.
- Iron Ore EBITDA fell 91.2% YoY to ₹10 Cr from ₹113 Cr, offsetting the Steel turnaround.
- Finance costs rose 297.7% YoY to ₹171 Cr, materially weakening the conversion of operating profit into PAT.
- The group swung from ₹111 Cr PAT in Q1FY27 to a ₹324 Cr loss in Q2FY27, with a ₹37 Cr exceptional charge also recorded.
Research and educational content only. Not investment advice.