Vedanta's Q4 Profit Jumps 89% to All-Time High as Demerger Looms

Metals and mining conglomerate Vedanta closed its financial year by reporting its strongest-ever quarterly performance in the January-March quarter. Consolidated net profit jumped 89% year-on-year (YoY) to ₹9,352 crore, while revenue rose 29% to ₹51,524 crore, both all-time highs for the company.

Following this, shares of the company were changing hands at ₹774.40, or 4.76% higher at around 3:27 PM.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) surged 59% to a record ₹18,447 crore, with margins expanding sharply to around 44%, up over 900 basis points from the year ago period. The improvement was driven by higher commodity realisations, increased volumes, better cost efficiencies, lower finance costs and favourable forex movements. For the full year FY26, Vedanta reported net profit of ₹25,096 crore, up 22% YoY, and revenue of ₹1.74 lakh crore, up 15%.

Operational Milestones

Executive Director Arun Misra credited the performance to disciplined execution across the portfolio. During FY26, Vedanta produced 2.46 million tonnes of aluminium, 2.9 million tonnes of alumina, 1.1 million tonnes of mined metal at Zinc India, 895 kt of pig iron and 101 kt of ferrochrome.

The company deployed ₹14,918 crore in growth capital during the year, commissioning projects including Lanjigarh Train II, the new BALCO smelter, downstream expansions at Jharsuguda, the Debari roaster at Zinc India and 1.3 GW of new power capacity. Aluminium and zinc businesses also recorded their lowest costs in five years.

Vedanta's financial health improved meaningfully during the quarter, with net debt-to-EBITDA falling to 0.95 times, its best level in 14 quarters, supported by strong cash flows and continued deleveraging.

Demerger on the Horizon

The results also reflect a structural shift in financial reporting. Several key businesses like aluminium, oil and gas, iron ore and power, have been classified as discontinued operations under Ind AS 105, following regulatory approval of Vedanta's demerger plan.

The scheme is set to take effect from May 1, after which shareholders will receive stakes in the newly carved-out entities.

The long awaited demerger comes as Vedanta had long been a sprawling, complex business; aluminium, power, oil and gas, iron and steel, all bundled under one listed entity. The company's argument for breaking itself up is simple. A single stock price cannot adequately reflect the value of businesses that operate in entirely different industries, with different customers, capital cycles and growth trajectories. The demerger is designed to fix that by creating focused, independently listed companies that investors can choose to own on their own merits.

The restructuring will result in five Vedanta Group companies trading on Indian stock exchanges, including the existing Vedanta Limited. Each of the four new entities will be a pure-play business, better positioned to pursue its own strategic agenda and attract the right set of investors, whether that is sovereign wealth funds, retail participants, or sector-specific institutional money.