Vedanta Oil & Gas reported average daily gross operated production of 72.2 kboepd for the second quarter ended September 30, 2026. This represents a 19% decline compared to 89.1 kboepd recorded in the corresponding period of the previous fiscal year.

The company attributed the sequential drop of 7% from the first quarter to natural decline at Rajasthan, partially offset by successful production optimization initiatives at the Ravva block. The strategic focus remains on arresting base decline through enhanced oil recovery projects and pursuing growth via near-to-medium term opportunities.

Regional production performance

Production across key basins showed mixed trends, with Rajasthan witnessing a significant contraction while Ravva demonstrated resilience and growth on a quarter-on-quarter basis.

Working interest and total volumes

Average daily working interest production stood at 47.8 kboepd, down 18% year-on-year from 58.2 kboepd. Total oil and gas production on a gross basis was 6.6 million boe for the quarter, reflecting an 18% decline over the half-year period compared to FY26 levels.

What the numbers show

A stark divergence is visible between the Ravva and Cambay blocks. While Ravva production grew 16% sequentially due to optimization efforts, Cambay volumes collapsed by 76% quarter-on-quarter to 1.1 kboepd. This sharp decline in Cambay is not merely operational but structural; the block's average production was factored only until July 21, 2026, following ONGC's takeover of operations on July 24, 2026. The loss of this asset significantly drags down the overall portfolio performance, masking the relative stability in other producing assets like OALP, which remained flat at 3.1 kboepd sequentially.

Vedanta Oil & Gas has initiated a postal ballot process seeking member approval for the introduction of new employee stock option and share purchase plans, alongside authorizing material related party transactions with group entities. The company proposes to create a combined equity pool of approximately 5% of its paid-up capital through an irrevocable employee welfare trust, utilizing secondary market acquisitions to avoid direct equity dilution for existing shareholders.

Employee Benefit Plans Structure

The proposed resolutions seek approval for two distinct schemes: the Vedanta Oil & Gas Limited – Employee Stock Option Plan 2026 (VOGL ESOP 2026) and the Employee Share Purchase Plan 2026 (VOGL ESPP 2026). The ESOP plan contemplates granting up to 16,62,04,184 options, representing 4.25% of the total paid-up share capital. Separately, the ESPP plan allows for the transfer of up to 2,93,30,150 shares, representing 0.75% of the paid-up capital. Both plans are designed to be implemented through a trust structure named 'VOGL ESOS Trust'.

To facilitate these plans, the company seeks authorization to provide financial assistance to the Trust by way of interest-free loans, guarantees, or security, capped at 5% of the aggregate of paid-up share capital and free reserves. The shares required for implementation will be acquired from the secondary market, ensuring no new shares are issued.

Related Party Transactions Overview

The company also seeks approval for material related party transactions (RPTs) for FY27 with entities including Serentica Renewables India 3 Private Limited, STL Digital Limited, and Vedanta Resources Limited (VRL). These transactions are necessitated by the recent demerger of the oil and gas business from Vedanta Limited, which became effective on May 1, 2026. Due to the timing of the demerger, the materiality threshold is calculated based on the pre-demerger standalone turnover of approximately ₹354 crore, rather than the post-demerger consolidated revenue of ~₹9,606 crore.

Voting Timeline and Details

The remote e-voting period commences on September 27, 2026, at 9:00 am and ends on October 26, 2026, at 5:00 pm. Members whose names appear in the register of members as of the cut-off date, September 18, 2026, are eligible to vote. The resolutions require special majority approval for the employee benefit plans and ordinary resolution status for the related party transactions.

What the Numbers Show

A significant divergence exists between the regulatory materiality calculation and the operational reality of the business. While the proposed RPTs with STL Digital (₹130 crore) and VRL (₹116 crore) appear substantial against the legacy standalone turnover of ₹354 crore (constituting ~34-37% of that base), they represent a negligible fraction of the actual post-demerger oil and gas business revenue of ~₹9,606 crore. This technical classification as 'material' is driven by the statutory requirement to use the last audited standalone figures prior to the scheme's effectiveness, rather than reflecting a change in the economic significance of these inter-company services.