Vedanta Aluminium Metal Ltd. saw its shares climb over 5% on Thursday after the company announced exceptional financial results for the first quarter of fiscal year 2027 (Q1 FY27). The recently demerged Vedanta Group entity posted a significant 205% year-on-year (YoY) increase in profit after tax (PAT), reaching Rs 6,597 crore for the June quarter. This also represents a 33% quarter-on-quarter (QoQ) growth, underscoring robust operational performance.
The company's revenue hit a record Rs 21,105 crore in Q1 FY27, marking a 45% increase from the previous year and a 13% rise sequentially. This impressive growth was primarily fueled by higher sales volumes and improved market realisations for its products.
Record Operational and Financial Metrics
Beyond profit and revenue, Vedanta Aluminium achieved record highs across several key metrics. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) soared to an all-time high of Rs 10,499 crore, up 134% YoY and 24% QoQ. This was significantly bolstered by stringent cost efficiencies, leading to an expanded EBITDA margin of 50% for the quarter.
On the operational front, aluminium production reached an unprecedented 632 kilotons (KT), reflecting a 5% YoY and 3% QoQ increase. Production of value-added products (VAP) also saw a record 389 KT, rising 14% annually and 4% sequentially. Alumina production demonstrated a substantial 41% YoY jump to 826 KT, attributed to enhanced refining capacity and improved asset utilisation.
Strengthened Balance Sheet and Credit Profile
Vedanta Aluminium further solidified its financial position through strategic deleveraging efforts. The company's net debt-to-EBITDA ratio improved notably to 0.9x from 1.3x in Q4 FY26. Both CRISIL and ICRA, leading credit rating agencies, have acknowledged this improvement by upgrading Vedanta Aluminium's credit rating to AA+ (Stable).
Anup Agarwal, CFO of Vedanta Aluminium, commented on the performance, stating, "Our inaugural quarter as an independent company marks a strong start, with record revenue at Rs 21,105 crore, EBITDA at Rs 10,499 crore, and PAT at Rs 6,597 crore. We enter this phase from a position of robust financials, with a strengthened balance sheet and improved credit profile, offering increased flexibility for our strategic growth ambitions."
As India's largest aluminium producer, Vedanta Aluminium is focused on establishing a fully integrated and globally competitive aluminium business, positioning itself for sustained growth in the market.