Vedanta Resources reports robust revenue and EBITDA growth in first half this fiscal

London: Vedanta Resources Ltd (VRL) posted strong performance in the first half of FY26, supported by favourable commodity prices, improved operations and disciplined capital management. The company reported its second-highest revenue at $9,367 million, an 8 per cent year-on-year rise, while EBITDA grew 6 per cent to $2,752 million, marking its second-best level. EBITDA margin remained industry-leading at 36 per cent, up 7 bps.

Profit After Tax before special items rose 7 per cent to $738 million, and reported PAT stood at $559 million. VRL’s net debt-to-EBITDA ratio improved to 2.0x from 2.3x a year earlier, supported by cash and liquid investments of $2.6 billion. Return on capital employed stayed strong at around 23 per cent. The company refinanced $550 million of high-cost debt, cutting average interest rates from about 11.6 per cent to 10 per cent, and extending maturity to roughly 4.5 years.

Reflecting improved financial strength, S&P Global revised VRL’s rating outlook to ‘B+/Positive’, while Fitch maintained ‘B+/Stable’ and Moody’s continued its ‘B1/Stable’ rating.

VRL invested $0.9 billion in growth capex during the half. Multiple businesses delivered record production: aluminium output touched 1,222 kt (+1 per cent), alumina 1,240 kt (+19 per cent), and Zinc India’s mined metal production 523 kt (+1 per cent). Zinc International posted a strong 44 per cent jump to 117 kt. Cost efficiencies continued, with Zinc India’s cost of production (COP) down 8 per cent, Zinc International’s COP lower by 1 per cent, and Zinc India recording its lowest first-half COP in five years.

Operations maintained steady momentum across geographies. Konkola Copper Mines ramped up after restart, producing 41 kt of metal in concentrate and 51 kt of finished goods. BALCO produced its first aluminium from the 525 KA smelter, while the Lanjigarh refinery delivered initial alumina from its expanded facility. Merchant power capacity rose to 4.2 GW with the addition of the Athena (600 MW) and Meenakshi (1,000 MW) units. Hindustan Zinc commissioned the Debari Roaster, enhancing production efficiency.

Vedanta strengthened its strategic mineral portfolio with three more critical mineral blocks, taking the total to 11. Hindustan Zinc also became the first Indian company to join the International Council of Mining & Metals, underscoring the group’s commitment to responsible and sustainable mining.