Vedanta's net profit dropped by 33% quarter-on-quarter (QoQ) in the second quarter of fiscal year 2027 (Q2 FY27), with revenue falling to ₹26,356 crore. However, the company reported its highest-ever quarterly revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) on a year-on-year (YoY) basis, showing significant growth despite the quarterly decline.
- Revenue fell 9% QoQ to ₹26,356 crore in Q2 FY27.
- Highest-ever quarterly revenue of ₹25,812 crore on a YoY basis, up 57%.
- EBITDA rose 17% QoQ to ₹9,915 crore, with a margin increase to 37.6%.
- Record quarterly profit after tax (PAT) of ₹6,202 crore, up 151% YoY.
- Net debt reduced by ₹4,624 crore sequentially to ₹3,675 crore.
- Invested ₹1,135 crore in growth capital expenditure during Q2 FY27.
- Completed demerger into four separate listed entities in mid-2026.
What were Vedanta's key financial results in Q2 FY27?
Vedanta's revenue from operations dropped by 9% QoQ to ₹26,356 crore in Q2 FY27, compared to ₹28,955 crore in the previous quarter. Despite this, the company achieved its highest-ever quarterly revenue of ₹25,812 crore on a YoY basis, marking a 57% increase from the same quarter last year.
The company's EBITDA rose by 17% QoQ to ₹9,915 crore, up from ₹8,501 crore in Q1 FY27. This improvement also expanded the EBITDA margin to 37.6%, compared to 35.1% in the previous quarter.
Profit after tax (PAT) reached a record ₹6,202 crore, representing a 151% increase YoY. For the first half of FY27, EBITDA stood at ₹18,407 crore, up 103% YoY, while PAT rose 151% to ₹11,496 crore. Half-yearly revenue also hit a record ₹49,268 crore, a 54% increase YoY.
How did Vedanta manage its debt and cash flow?
Vedanta successfully reduced its net debt by ₹4,624 crore sequentially, bringing it down to ₹3,675 crore at the end of Q2 FY27 from ₹8,299 crore in June 2026. This reduction was mainly driven by strong cash flow from operations.
The company generated free cash flow (FCF) before capital expenditure of ₹5,803 crore in Q2 FY27, up from ₹4,412 crore in Q1 FY27. The cumulative FCF for the first half of FY27 reached ₹10,215 crore.
During Q2 FY27, Vedanta invested ₹1,135 crore in growth capital expenditure, bringing the total investment for the first half of FY27 to ₹2,283 crore.
What was the impact of Vedanta's demerger in 2026?
Vedanta's demerger scheme became effective on May 1, 2026, with the stock trading on a post-demerger basis from April 30, 2026. Shareholders received one share each in four newly formed companies for every Vedanta Ltd share held as of the record date.
The four new companies—Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil and Gas, and Vedanta Iron and Steel—were listed and began trading on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on June 15, 2026.
This restructuring completed the group's plan to create focused, sector-specific businesses. Each company now operates independently with its own management, capital allocation, and growth strategy, simplifying Vedanta's corporate structure.
What are the key takeaways from Vedanta's Q2 FY27 performance?
- Despite a QoQ drop in revenue and net profit, Vedanta achieved record-high revenue and EBITDA on a YoY basis.
- The company improved operational efficiency, as shown by the increased EBITDA margin.
- Strong cash flow enabled significant debt reduction and capital investment.
- The demerger has positioned Vedanta's businesses for focused growth and clearer management.
