Vedanta Oil and Gas Q1 FY27 Results (NSE: VOGL)
Signal: Loss reversed
The read
Headline PAT of ₹945 Cr is entirely due to one-time exceptional gain from selling non-core businesses; continuing operations posted a wider loss of ₹152 Cr due to ₹379 Cr impairment on Cambay Block after PSC extension denial. Revenue grew 9% YoY on demerger, but EBITDA margin contracted QoQ. Key risk remains Cambay litigation; positive is MoPNG approval for demerger post-quarter.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,507 Cr | 8.9% | -3.0% |
| EBIT | ₹224 Cr | 39.1% | |
| Net profit | ₹945 Cr | N/A | |
| EPS | ₹2.42 | N/A | |
| EBIT margin | 38.5% |
P&L walk
Revenue grew 8.9% YoY on demerged undertaking, but QoQ fell 3%. EBITDA margin improved 270bps YoY to 38.5% on lower costs, but contracted QoQ. Finance costs dropped 34% YoY. Continuing PAT loss widened to ₹152 Cr due to ₹379 Cr impairment on Cambay Block. Total PAT of ₹945 Cr was entirely driven by ₹1,056 Cr exceptional gain from slump sale of non-core businesses.
Key positives
- Revenue grew 8.9% YoY to ₹2,507 Cr, driven by demerged oil & gas assets.
- Finance costs reduced 34% YoY to ₹110 Cr, improving interest coverage.
- Total PAT turned positive at ₹945 Cr vs loss of ₹104 Cr last year, aided by exceptional gain.
Key concerns
- Continuing operations PAT loss widened to ₹152 Cr from ₹15 Cr YoY, driven by ₹379 Cr impairment on Cambay Block.
- Legal uncertainty persists as Delhi High Court dismissed writ petition on Cambay PSC extension; appeal filed.
- EBITDA margin declined QoQ from 41.2% to 38.5%, indicating cost pressures.
- Exceptional gain of ₹1,056 Cr is non-recurring; core profitability remains negative.
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