Markets India
Vedanta Aluminium’s net profit surged 105% year-on-year to Rs 6,187 crore in Q2 FY27, driven by record production and higher sales, while revenue jumped 41% to Rs 22,066 crore, according to ET Markets. The results highlight the company’s shift toward profitability and scale in India’s aluminium sector.
Vedanta Aluminium reported a 105% YoY rise in net profit to Rs 6,187 crore, up from Rs 3,012 crore in the same period last year, with revenue climbing 41% to Rs 22,066 crore. EBITDA increased 83% to Rs 10,192 crore, and net debt fell Rs 3,090 crore sequentially to Rs 26,442 crore. Record aluminium production of 649,000 tonnes and expanded alumina output at Lanjigarh refinery to 895,000 tonnes underscored operational efficiency. The company’s net debt-to-EBITDA ratio improved to 0.7x from 0.9x in the prior quarter, enhancing financial flexibility.
The results reflect Vedanta’s focus on cost reduction and scale, with aluminium production costs declining 6% YoY to $1,722 per tonne. Value-added aluminium production rose 31% YoY to 432,000 tonnes, aligning with market trends. Expansion projects, including the Lanjigarh refinery’s 1 million-tonne alumina target, signal long-term growth ambitions. However, sequential net profit declined 6% from Rs 6,597 crore in the June quarter, and production costs rose 1% sequentially, raising concerns about short-term volatility.
Investors and creditors benefit from improved financial metrics, while competitors face pressure from Vedanta’s cost advantages and expansion. Domestic bauxite suppliers may see increased demand as the company aims to source 90% of raw materials locally by FY27. Risks include supply chain dependencies if local sourcing fails, though securing the Sijimali mine and expanding refinery capacity position Vedanta to capitalize on India’s infrastructure demand.
The company’s strategic shift toward value-added products and domestic raw material sourcing could strengthen its competitive position. However, the sequential profit dip and reliance on domestic bauxite supply chains remain key uncertainties. Vedanta’s ability to balance growth with cost management will determine its long-term success in the aluminium sector.
Vedanta Aluminium plans to operationalise the second zone of BALCO’s 435,000-tonne expansion and target over 1 million tonnes of alumina production at Lanjigarh by the December quarter. The company also aims to source 90% of raw materials domestically by FY27.
Vedanta Aluminium’s Q2 results highlight robust growth and cost efficiency, but sequential profit declines and supply chain dependencies remain key uncertainties. The company’s expansion plans and domestic raw material strategy will shape its long-term competitiveness.
Topics: Aluminium Production, India Markets, Vedanta Aluminium, EBITDA Growth, Domestic Sourcing, Operational Efficiency, Infrastructure Demand, Financial Metrics
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Source: ET Markets
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