Vedanta Limited reported record financials for FY2025-26, with revenue growing 15% to ₹1.74 lakh crore and profit after tax rising 22% to ₹25,096 crore. This performance was driven by strong commodity prices and operational gains, including record zinc production.

Vedanta Reports Record FY26 Performance

Vedanta Ltd's revenue reached ₹1.74 lakh crore, a 15% year-on-year growth, while PAT increased 22% to ₹25,096 crore for FY 2025-26.

Reader Takeaway: Record financials and successful demerger strategy balanced by geopolitical risks.

What just happened

Vedanta Limited announced its financial results for the fiscal year ended March 31, 2026. The company achieved a record revenue of ₹1,74,075 crore, marking a 15% increase compared to the previous fiscal year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 29% year-on-year to ₹55,976 crore. Profit After Tax (PAT) saw a 22% jump, reaching ₹25,096 crore. The company also declared a dividend of ₹34 per share. The Net Debt to EBITDA ratio stood at a healthy 0.95x.

Why this matters

These record financial figures indicate strong operational performance and favourable market conditions for Vedanta's core commodities. The significant growth in revenue and profit, alongside a healthy debt-to-equity ratio, suggests a robust financial position. The successful demerger into five pure-play entities aims to unlock value and allow for more focused strategies.

The backstory

The company has been undergoing a strategic transformation, referred to as 'Vedanta 2.0'. This includes a focus on critical minerals and advanced technologies, supported by a substantial capital expenditure plan. The demerger initiative is a key part of this strategy to create more agile and focused business units.

What changes now

With the demerger complete, Vedanta will operate as five distinct entities. This structural change is expected to provide each business with greater strategic flexibility and a stronger capital structure. The company plans to invest ₹15,000 crore in capital expenditure (capex) for FY 2025-26, with future guidance for FY 2026-27 set between ₹17,000–19,000 crore.

Risks to watch

Management has flagged macroeconomic and geopolitical uncertainties, such as trade wars and conflicts in the Middle East, as potential risks. These factors could impact commodity prices, disrupt supply chains, and affect overall market demand.

Peer comparison

Vedanta's operational performance in key segments like Aluminium and Zinc has shown growth. For instance, Aluminium production increased by 1% to 2,456 kt, and Alumina production surged by 48% to 2,916 kt. Zinc India reported its highest-ever mined metal production at 1,114 kt.

Context metrics (time-bound)

• FY 2025-26 Revenue: ₹1,74,075 crore (15% Y-o-Y growth)
• FY 2025-26 EBITDA: ₹55,976 crore (29% Y-o-Y growth)
• FY 2025-26 PAT: ₹25,096 crore (22% Y-o-Y growth)
• FY 2025-26 Capex: ₹15,000 crore
• Dividend: ₹34 per share

What to track next

Investors will be looking at the performance of the newly demerged pure-play entities. Key areas to monitor include the expansion of Zinc India's refined metal capacity to 2 million metric tonnes and achieving 90% value-added products (VAP) by FY 2026-27. The company's ability to navigate geopolitical risks and execute its capex plans will also be crucial.