Vedanta's Q1 Profit Jumps 13% to ₹5,000 Crore on Record Output, Cost Efficiency

Vedanta Limited has announced its unaudited consolidated financial results for the first quarter ended June 30, 2025, reporting a 13% year-on-year rise in net profit to ₹5,000 crore. The company posted its highest-ever Q1 EBITDA at ₹10,746 crore, reflecting a 5% annual growth. The EBITDA margin improved by 81 basis points to 35%, the highest in the past 13 quarters. Consolidated revenue also rose 6% YoY to ₹37,434 crore.

Vedanta’s liquidity improved significantly—7% quarter-on-quarter and 33% YoY—with cash and cash equivalents standing at ₹22,137 crore. Return on Capital Employed (ROCE) increased by 87 basis points to 25%. CRISIL and ICRA reaffirmed Vedanta's credit rating at AA.

Operational highlights include record alumina production of 587 kilotons (up 9% YoY) and the lowest hot metal cost (excluding alumina) in 16 quarters at $888 per ton. Alumina production cost dropped 12% QoQ. In zinc operations, Vedanta achieved record mined metal output in India at 265 kilotons and the lowest Q1 production cost at $1,010 per ton. International zinc production surged 50% YoY. Merchant power capacity of 950 MW was added with the Athena Power Plant (Unit 1 – 600 MW) and Meenakshi Power Plant (Unit 3 – 350 MW) starting operations in July 2025.

Chairman Anil Agarwal stated,
“Our Q1 performance lays a strong foundation for the year ahead. Amid global market volatility, we delivered the highest-ever first-quarter EBITDA. Operationally, we achieved the lowest hot metal cost in 16 quarters, record-low zinc production cost, a 74% YoY rise in Gamsberg output, 33% QoQ growth in power sales, and 150% growth in ferrochrome volumes. The ramp-up of Lanjigarh refinery to 587 KT puts us firmly on track to achieve our FY26 goal of over 3 million tons of alumina production. With the commissioning of Train-2 at Lanjigarh, 435 KT smelter capacity at BALCO, and 1,300 MW new thermal power in Q2, we are well-positioned to meet our annual guidance. In H2, operations at Sijimali bauxite mine and Kuraloi coal mine are expected to further boost our performance.”

CFO Ajay Goel added,
“We delivered our highest-ever Q1 EBITDA of ₹10,746 crore, up 5% YoY, with margins reaching 35%—the best in 13 quarters. Adjusted net profit reached ₹5,000 crore, up 13%. Additionally, ₹3,028 crore in cash from the Hindustan Zinc stake sale helped reduce our net debt-to-EBITDA ratio to 1.3x. With the ₹5,000 crore NCD issue and other refinancing, our cost of debt declined by 130 basis points to 9.2%. Reaffirmation of our AA credit rating by CRISIL and ICRA reflects market confidence in our financial strength and growth strategy.”

Vedanta has also excelled in sustainability. The group was recognized in the S&P Global Sustainability Yearbook 2025, with Hindustan Zinc ranked in the top 1% globally for ESG performance. Vedanta Limited and Vedanta Aluminium were named Sustainability Yearbook members, highlighting the group’s commitment to responsible and sustainable growth.

The company currently has 1,906 MW of renewable energy Power Delivery Agreements (PDAs). In Q1 FY26, 0.84 billion units of renewable energy were consumed. Gender diversity rose to 22% from 20% in Q1 FY25. High-Value Low-Toxicity (HVLT) waste utilization reached 72%, and water recycling stood at 48%. Over 500,000 trees were planted in Q1 FY26, taking the total to 3.5 million—50% of the FY30 target of 7 million.

Vedanta also made significant strides in community welfare, constructing over 8,600 Nand Ghars, positively impacting 3.4 lakh children and benefiting 2.5 lakh women. In Q1 FY26 alone, ₹98 crore was spent on CSR initiatives, benefiting approximately 20.4 lakh individuals.