Vedanta Iron and Steel LimitedQ2 FY27 Results & Financial Update
Vedanta Iron and Steel Limited: Q2 FY27 consolidated results and company financials – revenue ₹2,788.00 Cr, PAT ₹-324.00 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Vedanta Iron and Steel Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Vedanta Iron and Steel Limited reported revenue from operations of INR 2,788 crore and total income of INR 2,846 crore for the second quarter ended September 30, 2026.
The company recorded a loss before tax of INR 320 crore and a net loss after tax of INR 324 crore for Q2 FY27, resulting in basic and diluted earnings per share of negative INR 0.8.
Quarterly performance was adversely affected by seasonal disruptions in iron ore production, planned plant shutdowns undertaken at the Bokaro and Goa facilities to improve second-half asset reliability, and higher input commodity and conversion costs.
In the company's segment performance, the steel division generated revenue of INR 2,488 crore and a segment EBITDA of INR 73 crore, while the iron ore segment reported gross revenue of INR 638 crore, net revenue of INR 254 crore, and segment EBITDA of INR 10 crore.
Total consolidated debt stood at INR 2,637 crore as of September 30, 2026, comprising INR 623 crore in term debt, INR 1,378 crore in short-term borrowings, and INR 636 crore in working capital facilities, with cash and cash equivalents (including restricted fixed deposits of INR 295 crore) at INR 847 crore, bringing net external debt to INR 1,790 crore.
During the quarter, credit rating agency CRISIL assigned the company an AA/Stable credit rating, reflecting an independent assessment of its financial and operating profile.
Management noted that half-year results demonstrated structural improvement compared to the previous year, supported by efficiency initiatives, although Q2 earnings faced near-term weather and maintenance headwinds.
01 · Business model
What does Vedanta Iron and Steel do?
Vedanta Iron and Steel Limited operates an integrated business model that connects resource access, iron ore mining operations, and steel manufacturing across India and Africa.
The company's asset portfolio encompasses iron ore mining complexes located in Goa, Karnataka, and Odisha, alongside steelmaking facilities centered at ESL Bokaro and value-added processing units in Goa.
Revenue generation relies primarily on the production and sale of saleable steel products—including pig iron, billets, TMT bars, wire rods, and ductile iron pipes—as well as merchant and captive sales of saleable iron ore.
02 · Historical context
What shaped the business before this quarter
The demerger involving the company became effective on May 1, 2026, shaping the current scope of operations.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q2 FY27 |
|---|---|
| Revenue from operations | ₹2,788.00 Cr |
| Total income | ₹2,846.00 Cr |
| Profit before tax | ₹-320.00 Cr |
| Profit after tax | ₹-324.00 Cr |
| EPS | ₹-0.80 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Saleable steel production for Q2 FY27 reached 532 KT, up 4% year-on-year, though steel sales volume stood at 532 KT.
Saleable iron ore production stood at 1.5 million dry metric tonnes (Mn DMT) in Q2 FY27, representing a 13% decline year-on-year due to seasonal conditions and name-change transfer impacts affecting dispatches at Iron Ore Karnataka.
What drove margins
Profitability during the quarter was weighed down by elevated coking coal and fuel costs, alongside higher freight expenses.
Planned shutdowns at Bokaro and Goa steel plants, coupled with monsoon-related operational constraints, increased unit conversion costs and lowered operational leverage for the quarter.
05 · Demand, customers & order book
Where demand is coming from
Dispatches at Iron Ore Karnataka resumed in September 2026 following temporary interruptions related to post-demerger name change formalities.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Hot metal production reached 552 KT (Goa 236 KT, Bokaro 315 KT). Saleable production included Pig Iron at 277 KT, Billets at 12 KT, TMT Bars at 112 KT, Wire Rods at 108 KT, and Ductile Iron Pipes at 22 KT. Segment revenue was INR 2,488 crore with an EBITDA of INR 73 crore.
Saleable ore production was 1.5 Mn DMT, consisting of Goa at 0.1 Mn DMT (up 22% YoY), Karnataka at 0.5 Mn DMT (down 49% YoY), and Odisha at 0.9 Mn DMT (up 34% YoY). Gross revenue was INR 638 crore and segment EBITDA was INR 10 crore.
Geography and market mix
Operations span key mineral and manufacturing hubs across Goa, Karnataka, Odisha, and Bokaro in Jharkhand.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Planned maintenance shutdowns were successfully completed at both the Bokaro and Goa plants during Q2 FY27 to fortify operational reliability for the second half of the fiscal year.
Projects, capex and execution
Approved capex for major projects stands at INR 3,697 crore, which includes INR 722 crore for the Ductile Iron Pipe plant in Goa (with INR 453 crore spent up to Q2 FY27 and INR 111 crore spent during the quarter) and INR 2,975 crore for ESL Phase 1A (with INR 2,343 crore spent up to Q2 FY27 and INR 120 crore spent during the quarter), leaving a total balance of INR 901 crore.
Iron ore expansion plans feature the Bicholim mine expansion (3 to 3.6 MTPA) and the 0.5 MTPA Cudnem mine in Goa for FY27, alongside the Janthakal mine in Karnataka for FY28. Steel expansion plans at ESL Bokaro include a 0.5 MTPA coke oven, hot metal capacity expansion from 1.7 to 3.2 MTPA, and a 0.2 MTPA DI pipe project.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Secured 21 MW of open-access solar power at ESL Bokaro, targeting an estimated annual carbon dioxide emission reduction of approximately 50,000 tonnes.
09 · Reported developments
What changed operationally
CRISIL assigned an AA/Stable credit rating to the company during Q2 FY27.
Lost Time Injury Frequency Rate (LTIFR) improved to 0.41 in Q2 FY27 from 0.64 in Q1 FY27, and Total Recordable Injury Frequency Rate (TRIFR) improved to 0.71 from 1.59.
10 · Pressure points & risks
What is not going smoothly
The company reported a net loss after tax of INR 324 crore for Q2 FY27, impacted by seasonal monsoon disruptions, lower iron ore volumes, and higher coking coal input costs.
11 · Items worth noticing
The line items that can distort a quick read
The financial results include exceptional items resulting in a net pre-tax charge of INR 37 crore, offset by a tax credit of INR 9 crore.
12 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Working capital decreased during the quarter due to the release of inventory that had been built up proactively ahead of the monsoon season.
Capital allocation & funding
Total consolidated debt was reduced to INR 2,637 crore as of September 30, 2026. External net debt stood at INR 1,790 crore, with a net external debt-to-EBITDA ratio of 1.3x for H1 FY27. Inter-company debt stood at INR 973 crore.
13 · Beyond the numbers
What changed beyond the numbers
Reported update
Industry Awards and Accolades
ESL Bokaro received the GreenPro Certified Steel Portfolio Award 2026, and the company was recognized by the New Mangalore Port Authority with the Gold Export Excellence Award for FY 2025-26 for achieving the highest iron ore exports.
14 · Previous-quarter changes
What changed since the previous quarter
Compared to Q1 FY27, revenue and profitability moderated due to the seasonal monsoon impact on mining operations, planned maintenance shutdowns, and higher fuel consumption.
15 · Key Q&A
The quarter, answered directly
What does Vedanta Iron and Steel do?
Vedanta Iron and Steel Limited operates an integrated business model that connects resource access, iron ore mining operations, and steel manufacturing across India and Africa.
What is the clearest takeaway from Q2 FY27?
Vedanta Iron and Steel Limited reported revenue from operations of INR 2,788 crore and total income of INR 2,846 crore for the second quarter ended September 30, 2026.
What drove revenue or demand?
Saleable steel production for Q2 FY27 reached 532 KT, up 4% year-on-year, though steel sales volume stood at 532 KT.
What mattered most for margins or profitability?
Profitability during the quarter was weighed down by elevated coking coal and fuel costs, alongside higher freight expenses.
What changed operationally beyond the headline numbers?
Planned maintenance shutdowns were successfully completed at both the Bokaro and Goa plants during Q2 FY27 to fortify operational reliability for the second half of the fiscal year.
What are the main pressure points disclosed for the quarter?
The company reported a net loss after tax of INR 324 crore for Q2 FY27, impacted by seasonal monsoon disruptions, lower iron ore volumes, and higher coking coal input costs.
16 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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17 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Execution of Growth Projects: Monitor the progress and commissioning milestones of ongoing capital expenditure projects, including the Bicholim mine expansion and ESL Bokaro hot metal capacity expansion.
- 02
Iron Ore Dispatch Normalization: Track post-monsoon iron ore volume recovery across Goa, Karnataka, and Odisha mines following the resumption of dispatches at Karnataka.
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