Vedanta Aluminium Metal LimitedQ2 FY27 Results & Financial Update
Vedanta Aluminium Metal Limited: Q2 FY27 consolidated results and company financials – revenue ₹22,066.00 Cr, PAT ₹6,187.00 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 Aluminium Metal 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 Aluminium Metal Limited reported consolidated revenue from operations of ₹22,066 crore for the second quarter ended September 30, 2026, marking a robust 41% increase compared to ₹15,670 crore in the corresponding quarter of the previous year and a 5% sequential rise from ₹21,105 crore in Q1 FY27.
The top-line expansion was underpinned by higher production volumes across key operating plants and a favorable marketing mix, which heavily emphasized high-margin value-added product categories.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) reached ₹10,192 crore, delivering an 83% year-on-year surge from ₹5,582 crore and representing the second consecutive quarter with EBITDA exceeding ₹10,000 crore despite a sequential softening in London Metal Exchange (LME) prices.
Profit after tax (PAT) more than doubled year-on-year, scaling to ₹6,187 crore compared to ₹3,012 crore in Q2 FY26, though receding 6% sequentially from ₹6,597 crore due to a sequential contraction in LME price realizations.
Operating cost efficiencies remained a key pillar of performance, with hot metal cost of production standing at $1,722 per tonne during the quarter, benefiting from improved captive power plant efficiencies and greater integration.
The company demonstrated disciplined capital management and aggressive deleveraging, successfully reducing consolidated net debt by ₹3,090 crore during the quarter to bring net debt down to ₹26,442 crore ($2.8 billion) as of September 30, 2026.
Credit profile strengthening was highlighted by India Ratings and Research upgrading VAML's credit rating to AA+ (Stable), while ICRA and CRISIL reaffirmed their respective AA+ (Stable) ratings during the period.
01 · Business model
What does Vedanta Aluminium Metal do?
Vedanta Aluminium Metal Limited (VAML) operates as India's largest primary aluminium producer, commanding a major domestic market share and maintaining a leading global position in the non-ferrous metals industry.
The company's asset base includes world-scale manufacturing installations such as a massive aluminium smelter complex in Jharsuguda (Odisha) and the Bharat Aluminium Company (BALCO) operations, supported by a state-of-the-art alumina refinery located at Lanjigarh.
VAML's commercial model centers on vertical integration across the value chain, extending from bauxite mining and alumina refining to captive power generation, primary metal smelting, and a broad portfolio of value-added downstream products.
Serving industrial customers across more than 60 countries, the company caters to diverse end-use sectors including advanced manufacturing, power transmission, construction, automotive, and next-generation green technologies.
02 · Historical context
What shaped the business before this quarter
Earlier operational phases focused on scaling the Lanjigarh alumina refinery from 2 million tonnes toward its intermediate 3.5 to 5.0 million tonnes per annum capacity milestones to secure internal raw material feed.
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q2 FY27 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue from operations | ₹22,066.00 Cr | ₹15,670.00 Cr | ₹21,105.00 Cr |
| Total income | ₹22,671.00 Cr | ₹16,080.00 Cr | ₹21,702.00 Cr |
| EBITDA | ₹10,192.00 Cr | ₹5,582.00 Cr | ₹10,499.00 Cr |
| Profit before tax | ₹8,262.00 Cr | ₹4,033.00 Cr | ₹8,832.00 Cr |
| Profit after tax | ₹6,187.00 Cr | ₹3,012.00 Cr | ₹6,597.00 Cr |
| EPS | ₹13.21 | ₹6.07 | ₹14.39 |
| EBITDA margin | 46.19% | 35.62% | 50.00% |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Consolidated aluminium production reached a highest-ever quarterly level of 649 KT, up 5% year-on-year and 3% sequentially, driving higher physical sales volumes.
Value-added product (VAP) sales scaled to a record 433 KT during the quarter, registering a 30% year-on-year increase and enriching overall sales realizations.
Alumina production at the Lanjigarh refinery achieved a new quarterly peak of 895 KT, representing a 37% year-on-year increase and bolstering captive material security.
What drove margins
Aluminium LME prices averaged $3,226 per tonne in Q2 FY27, up 23% year-on-year from $2,618 per tonne in Q2 FY26, though down sequentially from $3,571 per tonne in Q1 FY27.
Hot metal cost of production stood at $1,722/t ($1,646/t excluding a one-off item), reflecting a 6% year-on-year reduction from $1,826/t and a marginal 1% sequential uptick from $1,698/t.
High plant utilization rates across Jharsuguda and BALCO, combined with enhanced power plant efficiencies and favorable foreign exchange movements, supported a robust EBITDA margin of ~46%.
05 · Demand, customers & order book
Where demand is coming from
VAML achieved 100% of its domestic sales through its proprietary e-commerce store VMB, which recorded an eStore Gross Merchandise Value (GMV) of $4 billion.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Jharsuguda production reached 470 KT during Q2 FY27 compared to 467 KT in Q2 FY26, maintaining stable output while achieving a hot metal cost of $1,699/MT.
Refinery output scaled to 895 KT with an alumina cost of production at $378/MT (₹36,090/MT), while domestic bauxite mix stood at 37% due to increased production volumes and consumption lag.
Geography and market mix
The company serves discerning customers across more than 60 countries while maintaining a dominant market share in the domestic Indian market.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Achieved highest-ever quarterly aluminium production of 649 KT (Jharsuguda 470 KT, BALCO 178 KT) and record half-yearly production of 1,281 KT.
Operationalized the second zone of the 435 KTPA BALCO capacity expansion project during the quarter.
Alumina production reached 895 KT for the quarter and 1,721 KT for the half year, advancing toward peak operational levels.
Projects, capex and execution
Total approved capex stands at ₹25,547 crore, against which ₹19,117 crore has been spent till date, leaving unspent approved capex of ₹6,430 crore as of September 30, 2026.
Sijimali Bauxite Mine obtained Consent to Operate (CTO) with execution targeted for H2 FY27; Kuraloi Coal Mine secured mine opening permission for Q3 FY27 commissioning; Ghogharpalli Coal Mine targets forest clearance in Q3 FY27 ahead of H2 FY27 commissioning.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Advancing vertical integration across bauxite, coal, and alumina to build one of the world's most cost-competitive and fully integrated aluminium businesses.
Deployed over 100 digital and AI go-lives across operations, generating annualized benefits of $87 million from identified projects with a pipeline of over 200 WIP projects.
09 · Reported developments
What changed operationally
Renewable energy consumption increased to 415 MW, raising the renewable energy share to 9%, while specific GHG intensity improved to 16.42 tCO2e/t.
10 · Pressure points & risks
What is not going smoothly
Sequential profitability was impacted by softening LME prices, resulting in a 3% dip in quarterly EBITDA and a 6% decline in PAT compared to Q1 FY27.
11 · Items worth noticing
The line items that can distort a quick read
Reported an exceptional item (net of tax) of ₹363 crore during the quarter.
12 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Generated robust free cash flow (FCF) of ₹6,043 crore during Q2 FY27, driven by strong operational cash flow of ₹7,620 crore, net of capex investments of ₹1,546 crore and minor working capital movements.
Capital allocation & funding
Consolidated net debt reduced by ₹3,090 crore sequentially to ₹26,442 crore ($2.8 billion) as of September 30, 2026, improving the Net Debt/EBITDA ratio to 0.7x from 0.9x in Q1 FY27.
Total consolidated debt stood at ₹32,800 crore ($3.4 billion) with an average term debt maturity of ~4.1 years. The company refinanced over ₹7,000 crore of debt during Q2 FY27.
13 · Management guidance & targets
What management is targeting from here
Management guided for annual alumina production of 4.0 to 4.1 MnT, total aluminium production of 2.6 to 2.7 MnT, and hot metal cost of production of $1,650 to $1,700/t.
14 · Beyond the numbers
What changed beyond the numbers
Reported update
Safety and Awards Recognition
Jharsuguda operations received the British Safety Council Five-Star Occupational Health and Safety Audit Award across TPP, CPP, and Smelter units during the quarter.
Reported update
Karlapat Bauxite Block
BALCO was declared as the preferred bidder for the Karlapat Bauxite block, further reinforcing long-term bauxite resource security.
15 · Previous-quarter changes
What changed since the previous quarter
Net debt to EBITDA improved significantly to 0.7x in Q2 FY27 compared to 0.9x in Q1 FY27 following substantial debt reduction and robust cash generation.
16 · Key Q&A
The quarter, answered directly
What does Vedanta Aluminium Metal do?
Vedanta Aluminium Metal Limited (VAML) operates as India's largest primary aluminium producer, commanding a major domestic market share and maintaining a leading global position in the non-ferrous metals industry.
What is the clearest takeaway from Q2 FY27?
Vedanta Aluminium Metal Limited reported consolidated revenue from operations of ₹22,066 crore for the second quarter ended September 30, 2026, marking a robust 41% increase compared to ₹15,670 crore in the corresponding quarter of the previous year and a 5% sequential rise from ₹21,105 crore in Q1 FY27.
What drove revenue or demand?
Consolidated aluminium production reached a highest-ever quarterly level of 649 KT, up 5% year-on-year and 3% sequentially, driving higher physical sales volumes.
What mattered most for margins or profitability?
Aluminium LME prices averaged $3,226 per tonne in Q2 FY27, up 23% year-on-year from $2,618 per tonne in Q2 FY26, though down sequentially from $3,571 per tonne in Q1 FY27.
What changed operationally beyond the headline numbers?
Achieved highest-ever quarterly aluminium production of 649 KT (Jharsuguda 470 KT, BALCO 178 KT) and record half-yearly production of 1,281 KT.
What is management guiding or targeting from here?
Management guided for annual alumina production of 4.0 to 4.1 MnT, total aluminium production of 2.6 to 2.7 MnT, and hot metal cost of production of $1,650 to $1,700/t.
17 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
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18 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Alumina Refinery Exit Rate: Track progress toward the targeted 1,000+ KT alumina production in Q3 FY27 and the March 2027 exit rate of 4.7 MTPA.
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