Vedanta Limited reported its highest-ever consolidated EBITDA of ₹8,469 crore for the quarter ended June 30, 2026, representing a 98% increase from the same period last year. The company also achieved its best-ever Profit After Tax (PAT) of ₹5,294 crore, up 152% year-on-year. This significant improvement in profitability coincides with a substantial reduction in net debt by ₹2,223 crore, strengthening the balance sheet ahead of future capital allocation decisions.

The Board of Directors approved the unaudited consolidated results in a meeting held on July 30, 2026. The statutory auditors carried out a limited review and issued an unmodified conclusion on the financial statements. The results were filed with stock exchanges under Regulations 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Highlights

Revenue from operations stood at ₹33,515 crore for the quarter, compared to ₹37,824 crore in the corresponding period of the previous year. Despite the decline in top-line revenue, operating efficiencies drove margins higher. Net profit before exceptional items, taxes, non-controlling interests, and share in jointly controlled entities was ₹10,630 crore, up from ₹6,053 crore in the prior year.

*EBITDA for Q2 FY26 derived from reported growth percentage.

Balance Sheet and Credit Metrics

The company’s outstanding debt decreased significantly to ₹28,291 crore from ₹80,357 crore in the previous year, reflecting aggressive deleveraging efforts. Consequently, the Debt Service Coverage Ratio improved to 2.52 times from 1.06 times, while the Interest Service Coverage Ratio rose to 12.59 times from 4.79 times. These metrics contributed to an upgrade in the credit rating to AA+, described as the decadal best for the company.

Standalone revenue from operations was ₹13,731 crore, down from ₹18,870 crore in the prior year. Standalone PAT was ₹4,384 crore, compared to ₹5,709 crore previously. Standalone outstanding debt fell to ₹12,178 crore from ₹46,857 crore.

What the Numbers Show

The divergence between declining revenue and surging EBITDA indicates a structural shift in Vedanta’s cost base or mix of operations, likely aided by the demerger adjustments mentioned in the notes. The drastic reduction in debt has materially improved interest coverage ratios, suggesting enhanced financial flexibility. The upgrade to AA+ rating validates the market’s confidence in the company’s improved risk profile and ability to service obligations without relying on external funding pressure.

Mahanagar Gas Limited reported a standalone net profit of ₹193.70 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 46.83% increase from ₹131.92 crore in the preceding quarter. The Mumbai-based natural gas distributor saw revenue from operations grow 15.05% to ₹2,597.89 crore, primarily driven by robust growth in compressed natural gas (CNG) volumes which surpassed analyst estimates. Earnings per share stood at ₹19.61, compared to ₹13.35 in the prior period. This quarterly performance highlights a strong operational recovery, with consolidated net profit attributable to owners of the company recorded at ₹193.00 crore.

The Board of Directors approved the unaudited financial results at a meeting held on July 30, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by Deloitte Haskins & Sells LLP, the company's independent auditors, in accordance with Standard on Review Engagements (SRE) 2410. The filing complies with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, an investor presentation was released on July 31, 2026, pursuant to Regulation 30 and Schedule III of the same regulations, detailing operational performance and forward-looking statements.

Operational Performance

Total gas sales volumes increased 3.14% quarter-on-quarter to 433.71 million standard cubic meters (SCM). CNG volumes rose 5.55% to 318.09 million SCM, exceeding analyst estimates of 309 million SCM. Total piped natural gas (PNG) volumes declined 2.95% to 115.61 million SCM due to an 8.90% drop in industrial and commercial demand, which was partially offset by a 4.13% rise in domestic PNG sales. The company’s infrastructure includes over 8,477 km of pipeline and 519 CNG filling stations, serving a strong customer base of 1.31 million CNG vehicles and over 3.24 million PNG households.

Net revenue from operations grew 15.62% to ₹2,371.71 crore. CNG net sales increased 9.42% to ₹1,618.51 crore, while PNG net sales surged 32.34% to ₹738.56 crore. Other operating income rose 14.27% to ₹9.92 crore. The gross profit per SCM improved to ₹14.50 from ₹13.35 in the previous quarter, reflecting better pricing dynamics despite higher gas costs.

Financial Highlights

EBITDA expanded 31.74% quarter-on-quarter to ₹342.98 crore, with the EBITDA margin improving to 14.46% from 12.69%. Purchase of natural gas and traded items rose to ₹1,733.38 crore from ₹1,481.56 crore. Employee benefits expense increased to ₹46.34 crore, and depreciation and amortization expenses were ₹108.55 crore. Finance costs remained low at ₹5.73 crore. Year-on-year, however, results showed a decline due to a one-time revenue reversal in the prior year. Net profit fell 39.39% to ₹193.70 crore from ₹319.56 crore in Q1FY25. EBITDA dropped 31.50% to ₹342.98 crore from ₹500.71 crore, as the comparable period included a ₹112.87 crore reversal of trade margin revenue related to an agreement with oil marketing companies.

Strategic Investments and Legal Matters

The company continued its expansion into electric mobility and renewable energy. It invested an additional ₹0.99 crore in Optionally Convertible Debentures (OCDs) in 3EV Industries Private Limited during the quarter, bringing its total investment to ₹83.99 crore for a 26.13% fully diluted equity stake. Additionally, Mahanagar Gas invested ₹3.89 crore in FPEL Reliant Energy Private Limited to acquire a 26% equity stake as a captive user.

Two significant legal matters remain sub judice. The company is contesting a ₹331.80 crore transportation tariff demand from GAIL (India) Limited regarding the ONGC Uran Trombay Natural Gas Pipeline, with the next hearing in the Delhi High Court scheduled for August 13, 2026. Separately, it is challenging a GST liability demand of ₹54.33 crore under the Reverse Charge Mechanism for road reinstatement charges, with a hearing scheduled for August 17, 2026. Management maintains that it has a strong case in both instances and has not recognized any provisions.

What the Numbers Show

The quarter-on-quarter improvement in profitability was largely driven by operational efficiencies rather than volume growth alone. While total volumes increased modestly by 3.14%, EBITDA grew by 31.74%, indicating a significant improvement in margin quality. The gross profit per SCM rose to ₹14.50 from ₹13.35, suggesting that the company successfully passed on higher input costs to consumers or benefited from favorable tariff adjustments. However, the year-on-year comparison remains distorted by the one-time revenue reversal in Q1FY25, making quarter-on-quarter trends more indicative of current business health. The decline in industrial and commercial PNG volumes highlights ongoing challenges in that segment, but the resilience of domestic PNG and CNG segments provided a stable base for overall performance.