Vedanta Limited: Record Aluminium and Zinc Production in FY26, Oil & Gas Legal Matter Lingers

Vedanta Limited's full-year FY26 production figures show a robust performance, marked by the highest-ever annual Aluminium output and record annual mined metal production at Zinc India.

Today's Filing

Vedanta Limited announced its production figures for the fourth quarter and full year ended March 31, 2026. The company achieved its highest-ever annual Aluminium production, reaching 2,456 kilotonnes (kt). Zinc India recorded its best-ever annual mined metal production at 1,114 kt.

Other segments also demonstrated strong year-on-year growth. Alumina output from Lanjigarh surged by 48% to 2,916 kt, and refined Zinc (Zinc India) increased by 3% to 851 kt.

Significant volume increases were also seen in Iron Ore (+5% to 6.5 million tonnes), Pig Iron (+10% to 895 kt), FACOR Ore (+49% to 371 kt), Ferro Chrome (+21% to 101 kt), and Copper Cathodes (+15% to 170 kt).

Power sales saw a substantial 14% year-on-year jump, reaching 18,571 million units, driven by strong operational performance, particularly at the Athena & Meenakshi plants which contributed to a 43% YoY increase in Q4 power sales.

Why This Matters

These production records underscore Vedanta's operational capabilities and its ability to scale up output across key commodity segments. The highest-ever Aluminium production and record mined metal output at Zinc India signal enhanced efficiency and capacity utilisation.

This performance indicates a strong operational footing as the company navigates market dynamics. However, the continuation of the sub-judice matter related to the Cambay oil and gas block introduces an element of uncertainty.

Background

Vedanta Limited, a diversified natural resources conglomerate, has been focusing on enhancing its operational efficiencies and expanding production capacities across its business verticals. The company had set ambitious targets for FY26, aiming for record annual EBITDA and increased production volumes, demonstrating a forward-looking strategy for growth.

However, Vedanta has faced challenges in its Oil & Gas segment. The government rejected the extension of the Production Sharing Contract (PSC) for the Cambay Basin block (CB-OS/2), leading to a legal dispute. The Delhi High Court, in January 2026, ordered a status quo on this decision, staying ONGC's takeover of the block.

Key Updates for Investors

• Shareholders can note the company's strong operational execution in its core metals and mining segments, achieving historic production milestones.
• The performance highlights Vedanta's capacity to meet growing commodity demand through enhanced output.
• The ongoing legal proceedings concerning the Cambay oil and gas block remain a key overhang, with future developments needing close monitoring.
• Consistent growth in power sales adds to the diversified revenue streams, supported by operational improvements.

Key Risks

The matter of Vedanta's operation of the Cambay block in Oil & Gas remains sub-judice following the rejection of the PSC extension by the Ministry of Petroleum and Natural Gas (MoPNG). A Delhi High Court order in January 2026 directed a status quo on the government's decision, pending further adjudication.

Peer Performance

Vedanta's aluminium peers, Hindalco Industries and NALCO, also reported strong FY26 performances. NALCO achieved its highest-ever production across multiple operational fronts, including bauxite, alumina, and aluminium metal sales. Hindalco reported record India business performance in Q3 FY26, with growth in upstream and downstream EBITDA.

In the zinc segment, Vedanta's subsidiary Hindustan Zinc (HZL) also posted its best-ever annual mined metal production in FY26, a testament to robust performance across Vedanta's metals portfolio.

Key Production Figures

• FY26 Total Aluminium Production: 2,456 kt
• FY26 Mined Metal Production (Zinc India): 1,114 kt
• FY26 Alumina - Lanjigarh Production: 2,916 kt

What to Track Next

• Resolution of the sub-judice matter concerning the Cambay oil and gas block and its potential impact on Vedanta's Oil & Gas segment.
• Further operational performance updates and production targets for FY27 across all business verticals.
• Vedanta's strategy for expanding production capacities and managing costs in its key metals and mining segments.
• Any regulatory or judicial developments related to the Cambay block PSC extension case.
• Progress on the company's investment plans and growth projects announced for the coming years.