Vedanta Limited is a globally diversified natural resources company, a leading producer of metals, oil & gas, critical minerals, and power. The company's strategic focus is on supplying essential materials that are fundamental to the global energy transition, the advancement of emerging technologies, and the development of the future green economy. Its extensive and varied portfolio underpins industrial growth, enhances energy security, and drives technological progress across international value chains. With a significant operational footprint spanning India, Africa, the Middle East, and East Asia, Vedanta is strategically positioned in high-growth geographies that are poised to shape the next phase of global development. Sustainability is a core pillar of the company's strategy, which is executed through robust ESG governance, a people-first workplace culture, and a firm commitment to achieving net-zero emissions by 2050 or sooner. By operating at the intersection of resources, technology, and human potential, Vedanta aims to strengthen economies, empower communities, and create sustainable, long-term value for all its stakeholders.

Official Website: http://www.vedantalimited.com/

• Record-Breaking Performance (FY26 & Q4 FY26)

• Full Year FY26: The company achieved its best-ever annual financial performance. Revenue grew 15% YoY to ₹1,74,075 crore. EBITDA reached a record ₹55,976 crore, a 29% YoY increase. Profit After Tax (PAT) was the highest ever at ₹25,096 crore, up 22% YoY.

• Fourth Quarter Q4 FY26: The quarter marked the company's strongest financial performance. Revenue was ₹51,524 crore, up 29% YoY. EBITDA hit a record ₹18,447 crore, a significant 59% YoY jump. PAT surged 89% YoY to ₹9,352 crore.

• Balance Sheet Strength and Liquidity

• Deleveraging: The company has significantly improved its leverage position. The Net Debt to EBITDA ratio improved to 0.95x as of March 31, 2026, down from 1.22x a year prior. This is the best leverage ratio in 14 quarters.

• Debt Position: Gross debt stood at ₹81,740 crore, with net debt at ₹53,254 crore.

• Liquidity: The company maintains a strong liquidity position with Cash and Cash Equivalents of ₹28,485 crore, an increase of 38% YoY. Free Cash Flow (pre-capex) for the year was robust at ₹26,013 crore.

• Credit Rating: Credit rating agencies CRISIL and ICRA have reaffirmed Vedanta's rating at 'AA / Watch with Developing Implications', signaling confidence in its financial stability.

• Shareholder Returns

• Dividends: The company has been consistent in rewarding shareholders, paying a total dividend of ₹34 per share for the full fiscal year FY26.

• Total Shareholder Return (TSR): For FY26, Vedanta delivered a TSR of 48.6%, which is 2.1 times the return of the Nifty Metal Index, indicating significant outperformance.

Vedanta's financial performance in FY26 was exceptionally strong, marked by record-breaking revenue and profits, coupled with a significant strengthening of the balance sheet through deleveraging.

• Diversified Commodities Portfolio

• Vedanta operates across a wide range of commodities, including Aluminium, Zinc (India and International), Oil & Gas, Power, and Iron & Steel. This diversification provides a natural hedge against price volatility in any single commodity, ensuring more stable and resilient earnings streams.

• Vertical Integration and Cost Leadership

• The company demonstrates strong vertical integration, particularly in its Aluminium business, with record production from its Lanjigarh alumina refinery feeding its smelters. This integration is a key driver of cost efficiency.

• This operational model has resulted in achieving the lowest cost of production (COP) in the last five years for both the Aluminium business ($1,752/t) and the Zinc India business ($959/t), creating a significant competitive advantage.

The company's unique strength lies in its diversified, vertically integrated business model, which enables it to achieve industry-leading cost structures and maintain operational resilience across cycles.

• Financial Growth Metrics

• The company's growth is evident in its key financial indicators for FY26: Revenue increased by 15% YoY, EBITDA by 29% YoY, and PAT by 22% YoY. These figures reflect substantial growth in both the top and bottom lines.

• Operational Production Growth

• Aluminium: Achieved record annual Aluminium production of 2,456 kt (+1% YoY) and record Alumina production of 2,916 kt (+48% YoY).

• Zinc India: Delivered its best-ever annual mined metal output at 1,114 kt (+2% YoY) and record refined zinc metal production of 851 kt (+3% YoY).

• Zinc International: Mined metal production jumped 27% YoY to 225 kt, driven by a 39% increase at the Gamsberg mine.

• Iron & Steel: Recorded the highest-ever annual pig iron production at 895 kt (+10% YoY) and Ferro Chrome production at 101 kt (+21% YoY).

Vedanta demonstrated robust growth in FY26, with strong financial results directly fueled by record-breaking operational performance and increased production volumes across its core business segments.

• Value Unlocking through Demerger

• The planned demerger of Vedanta Limited, effective from May 1, 2026, is a major strategic initiative. This move is designed to create separate, pure-play companies for Aluminium, Oil & Gas, Power, Iron & Steel, and a streamlined Vedanta Limited. This structure is intended to unlock value for shareholders by allowing for more focused capital allocation and attracting specific investor interest for each business.

• Strategic Acquisitions and Discoveries

• Downstream Expansion: The acquisition of Incab Industries is a strategic move to strengthen its downstream presence in the copper and aluminium sectors.

• Resource Augmentation: A significant gas discovery at the Ambe Block on the West Coast adds approximately 13 million barrels of oil equivalent (mmboe) to the company's reserves and resources, presenting a clear opportunity for future production growth in the Oil & Gas business.

• Growth Projects Nearing Completion

• Key growth projects are advancing, such as the commissioning of India's largest 525 kA Smelter at BALCO and the ramp-up of Gamsberg Phase 2 in the Zinc International business, which is targeted for Q2FY27. These projects are set to contribute to future volume growth.

The company is actively pursuing growth through a strategic corporate restructuring, value-accretive acquisitions and discoveries, and the execution of a strong pipeline of organic growth projects.

• Disciplined Capital Expenditure

• Vedanta invested a total of ₹14,918 crore in growth capex during FY26. This investment was strategically focused on projects aimed at volume expansion, cost compression, and enhancing supply chain integration.

• The projected capex for FY2027 is guided to be between ₹17,000 to ₹19,000 crore, indicating a continued commitment to investing in value-adding growth projects across its businesses.

• Power Plant Performance

• The company’s power assets demonstrated strong operational performance. The TSPL (Talwandi Sabo Power Limited) plant maintained a high availability factor (PAF) of 83% for FY26, ensuring reliable power generation.

• The company also secured a 5-year, 500MW Power Purchase Agreement (PPA) for its Meenakshi and Athena plants, which provides long-term revenue visibility for these assets.

Vedanta is executing a disciplined but significant capex program to fuel future growth, while its existing power assets continue to operate at high levels of availability.

• FY27 Production & Cost Guidance

• Aluminium: Production is guided at 2.6 - 2.7 million tonnes (Mnt) with a target cost of production (CoP) of $1,650/t - $1,700/t.

• Zinc India: Mined metal production is projected to be between 1,140 - 1,160 kt, with a CoP target of $975/t - $1000/t.

• Zinc International: Gamsberg is expected to produce 280 - 300 kt.

• Oil & Gas: Average gross operated production is guided at 90 - 95 kboepd.

• Iron Ore: Total production from Goa, Karnataka, and Orissa is guided between 11.9 - 13.5 Mnt.

• Project Commissioning Timelines

• Several key projects are scheduled for commissioning in the near term, which will drive future growth.

• FY27: Key projects include the Gamsberg Phase 2 commissioning (1HFY27), ramp-up of the Kuraloi and Sijimali mines (1HFY27), and expansion of hot metal capacity at the steel plant (2HFY27).

• FY28: Longer-term projects include a 10 Mtpa Zinc Tailings Reprocessing Plant and expansion of the Ferrochrome smelter plant capacity.

The company has provided clear, data-driven guidance for FY27 and a detailed project pipeline, offering investors strong visibility into its operational and growth trajectory for the coming years.

• Record EBITDA Margins

• Vedanta achieved a record-best EBITDA margin of approximately 44% in Q4 FY26, an improvement of 915 basis points (bps) YoY.

• For the full year FY26, the EBITDA margin was approximately 39%, up 470 bps YoY, marking the second-highest annual margin ever. This expansion was driven by higher commodity prices, increased volumes, and operational efficiencies.

• Cost Reduction Initiatives

• A primary driver of margin expansion was a relentless focus on cost control. The company achieved its lowest cost of production in five years in two of its key businesses:

• Aluminium: COP was $1,752/t, down 5% YoY.

• Zinc India: COP was $959/t, down 9% YoY.

• These cost reductions were realized through operational efficiencies, better raw material sourcing, and higher production volumes.

Vedanta's significant margin expansion in FY26 was a direct result of both favorable market dynamics and successful internal initiatives to drive down production costs to multi-year lows.

• Market and Commodity Price Volatility

• As a diversified natural resources producer, Vedanta's revenues and profitability are directly exposed to the fluctuations of global commodity markets, including metal prices on the London Metal Exchange (LME) and Brent crude oil prices. A downturn in these markets could materially impact financial results.

• The company's earnings sensitivity indicates that a 10% increase in the average price of Aluminium would impact EBITDA by $641 million, while a similar increase in Zinc prices would impact it by $278 million.

• Foreign Exchange Fluctuations

• A significant portion of the company's operations and debt is linked to the US dollar. Fluctuations in the INR/USD exchange rate can impact earnings and the value of its liabilities.

• The company quantifies this risk, stating that a ₹1 depreciation in the INR against the USD would impact annual EBITDA by approximately ₹1,050-1,100 crore.

The company's performance is inherently exposed to external macroeconomic risks, primarily the volatility in global commodity prices and currency exchange rates, which are beyond its direct control.

• Corporate Structure: Demerger

• The demerger, effective May 1, 2026, is the most significant upcoming corporate action. The move will create separately listed entities, each with a distinct capital structure.

• Proforma financials indicate the Net Debt/EBITDA for the new Vedanta Aluminium will be 1.3x, Vedanta Limited (Zinc & others) will be 0.4x, and Vedanta Oil & Gas will have zero net debt, allowing each to pursue its own growth strategy.

• Credit Profile

• Vedanta's credit profile remains strong, reaffirmed at 'AA' by domestic agencies CRISIL and ICRA.

• The parent company, Vedanta Resources Ltd (VRL), has also seen its credit rating upgraded by Fitch to 'BB-', with a continued "Positive" outlook from S&P and Moody's, reflecting successful deleveraging and debt maturity management at the group level.

• ESG Leadership

• The company has made significant strides in its ESG initiatives. Hindustan Zinc became the first Indian company to join the International Council on Mining & Metals (ICMM).

• Vedanta increased its renewable energy consumption by 52% YoY in FY26 and invested ₹418 crore in CSR initiatives, positively impacting 7.8 million lives.

Key updates for investors include a major value-unlocking demerger, a strengthened credit profile at both the company and parent level, and a demonstrated commitment to ESG leadership.