Vedanta Q1 Profits Dip Despite Strong Alumina, Ferro Chrome Output; SEBI RA Flags Margin Pressure

Vedanta posted a rise in revenue for the first quarter (Q1), but profits took a hit as rising costs squeezed margins, despite a solid performance in key areas like alumina and ferrochrome.

Vedanta reported a 5.8% year-on-year rise in revenue to ₹37,824 crore in Q1 FY26, driven by solid operational performance across its metals and energy segments.

Meanwhile, the company’s net profit fell 11.7% year-on-year to ₹3,185 crore in Q1 FY26, as margin pressures weighed on earnings despite healthy volume growth.

The company declared an interim dividend of ₹7 for FY26. 

Operationally, alumina output reached a record 587 kilotonnes, a 9% year-on-year and 36% quarter-on-quarter increase. Ferro chrome output surged approximately 150% quarter-on-quarter, while zinc and iron-ore volumes saw a modest uptick. 

Oil and gas production declined 17% year-on-year to about 93.2 kboepd. 

Chairman Anil Agarwal stated that the ramp-up of the Lanjigarh refinery to 587,000 tonnes demonstrates progress toward delivering over 3 million tonnes of alumina in FY26. 

He added that the commissioning of Train II at Lanjigarh, 435 kt smelter capacity at Balco, and 1300 MW of new thermal power capacity in the second quarter (Q2) will enable the company to deliver on its full-year guidance. 

He also noted that operations at the Sijimali bauxite mine and Kuraloi coal mine are expected to begin in the second half of the year.

SEBI-registered research analyst Financial Independence described the quarter as “mixed.” 

The analyst noted that Vedanta posted moderate revenue growth and strong volumes in alumina and ferrochrome, but margin pressure led to a decline in profit. 

A sequential dip in core profit was also highlighted, alongside commodity cost and pricing headwinds. Operational momentum remains, but near-term profitability may continue to be under pressure, the analyst added.

On Stocktwits, retail sentiment for Vedanta was ‘extremely bullish’ amid ‘extremely high’ message volume.

Vedanta’s stock has declined 3.9% so far in 2025.

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