Vedanta Q2 Results: Aluminium business EBITDA aids growth, margins expand

Vedanta Ltd., the Anil Agarwal owned mining conglomerate reported results on Friday, October 31. Its subsidiary Hindustan Zinc has already reported results and nearly 40% of the company’s Earnings Before Interest and Tax (EBIT) comes from Hindustan Zinc.

The company’s net profit declined by 39% from last year to ₹3,479 crore, which is in-line with the CNBC-TV18 poll of ₹3,464 crore. This quarter had an exceptional loss of ₹2,067 crore, compared to an exceptional gain of ₹1,868 crore during the base quarter.

Revenue for the quarter increased by 6% from last year to ₹39,868 crore, higher than the CNBC-TV18 poll of ₹38,250 crore. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 16% year-on-year to ₹11,397 crore, which was also higher than the CNBC-TV18 poll of ₹10,590 crore.

EBITDA margin for the quarter expanded to 28.6% from 26.11% last year, and higher than the 27.7% poll estimate.

Here are some of the other highlights from Vedanta’s quarterly result:

• Aluminium business EBITDA at ₹5,532 crore, higher than the CNBC-TV18 poll of ₹4,750 crore
• Oil & Gas business EBITDA at ₹1,029 crore, lower than the CNBC-TV18 poll estimate of ₹1,132 crore
• Zinc International business EBITDA at ₹373 crore, also marginally lower than the CNBC-TV18 poll of ₹422 crore

Here are some of the other things to watch out for during Vedanta’s results:

• Progress on volume and margin expansion projects
• Management commentary on the demerger status is a key monitorable.
• Cashflow for the parent and debt repayment reschedule
• FY26 production, cost and capex guidance

Shares of Vedanta are down 2.2% after the earnings announcement at ₹495.2.