Vedanta Ltd., a prominent mining and metals conglomerate, announced a substantial contribution of ₹62,722 crore to the national exchequer for the fiscal year 2026 (FY26). This represents a significant 13.3% increase compared to the previous year and stands as the company's second-highest annual contribution on record, as detailed in its 11th Tax Transparency Report.
The impressive tax contribution accounts for approximately 36% of Vedanta's consolidated revenue from operations during FY26. Over the past decade, Vedanta's cumulative contribution to the exchequer has reached ₹4.83 lakh crore, solidifying its position among India's top three private-sector contributors.
Strong Financial Performance Fuels Contribution
The surge in tax payments is directly attributed to Vedanta's strongest-ever financial performance in FY26. The company reported record revenue of ₹1,74,075 crore, marking a 15% increase from the prior year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a robust 29% rise to ₹55,976 crore, while profit after tax (PAT) grew by 22% to ₹25,096 crore.
Vedanta also demonstrated improved balance sheet strength, with its net debt-to-EBITDA ratio enhancing to 0.95 times from 1.22 times, achieving its best level in 14 quarters.
Key Business Segments Driving Contributions
Among Vedanta's diverse business segments, zinc emerged as the largest contributor to the exchequer, accounting for ₹19,053 crore during FY26. This was closely followed by Vedanta Aluminium, which contributed ₹15,788 crore, and Vedanta Oil & Gas, adding ₹11,697 crore. The company's performance was bolstered by strong operational results across its varied portfolio, which includes zinc, lead, silver, aluminium, copper, iron ore, steel, power, nickel, chrome, and oil and gas operations.
Detailed Breakdown of Tax Payments
The Tax Transparency Report provides an in-depth look at Vedanta's payments across various governmental levels. Key components of the contribution include:
- Government Royalties and Profit Petroleum: ₹14,840 crore, paid to states like Rajasthan, Odisha, Gujarat, Andhra Pradesh, Chhattisgarh, Goa, Karnataka, and Assam for mining and hydrocarbon production.
- Taxes on Income and Capital: ₹8,290 crore.
- Other Taxes Borne: ₹11,897 crore, encompassing export and import duties, oil cess, electricity duty, and ineligible GST.
- Indirect Taxes Collected and Remitted: ₹21,777 crore, including CGST, SGST, and IGST.
- Withholding Taxes: ₹3,188 crore.
Additionally, the Government of India received ₹1,180 crore in dividends through its 27.92% stake in Hindustan Zinc Ltd.
Commitment to Tax Transparency
Vedanta emphasized that the FY26 report marks its 11th consecutive year of voluntary tax transparency disclosures. This initiative is a crucial element of its environmental, social, and governance (ESG) framework. The company's tax reporting adheres to the B-Team Responsible Tax Principles and the Extractive Industries Transparency Initiative (EITI), underscoring its dedication to responsible corporate governance and stakeholder transparency. Vedanta reiterated that its tax contributions play a vital role in supporting public finances and reinforcing its commitment to India's economic development and the government's Viksit Bharat vision.