Vedanta Limited has delivered exceptional production performance in Q3FY26, achieving record quarterly and nine-month production levels across its key aluminium and alumina operations. The oil-to-metals conglomerate announced its production results for the third quarter and nine months ended December 31, 2025, reporting record output across multiple businesses with significant growth recorded across various segments.

Record-Breaking Aluminium and Alumina Performance

The company achieved its highest-ever quarterly aluminium production of 620kt, representing a 1% year-on-year increase, while alumina production reached a record 794kt, marking a substantial 57% YoY growth. The nine-month performance was equally impressive, with aluminium production totaling 1,842kt (+1% YoY) and alumina reaching 2,034kt (+32% YoY).

The outstanding alumina performance was driven by the commissioning of Train II at the Lanjigarh refinery, while aluminium production benefited from operational efficiencies at the Jharsuguda facility.

Zinc Operations Achieve New Milestones

Zinc India operations delivered their best-ever third quarter performance, with mined metal production reaching 276kt (+4% YoY) and saleable metal production hitting 270kt (+4% YoY). The strong performance was attributed to higher ore production and the commissioning of debottlenecking projects at Chanderiya and Dariba facilities.

Zinc International operations also performed well, with total mined metal production of 59kt representing a 28% YoY increase, primarily driven by higher throughput at Gamsberg operations where production rose 40%.

Power Segment Delivers Strong Growth

The power segment achieved remarkable growth with sales increasing 40% YoY to 4,530 million units in Q3FY26. This performance was supported by the successful commissioning and ramp-up of the Athena 600MW and Meenakshi 1000MW power plants.

Athena achieved a plant load factor of 72% in Q3FY26 after commencing commercial operations, while Talwandi Sabo Power Ltd's availability stood at 76% during the quarter.

Operational Improvements Across Other Segments

Several other business segments demonstrated strong performance improvements. Steel finished production reached 325kt, achieving the highest-ever quarterly billet production of 285kt driven by improved operational efficiency. Iron ore saleable production increased 3% YoY to 1.6 million tonnes, while pig iron production rose 6% to 229kt.

FACOR reported ore production of 103kt, up 54% YoY, and ferrochrome production of 24kt, up 32%, supported by the restart of Kalarangiatta Mines. Copper India operations marked their highest quarterly cathode production in seven years at 45kt. Oil and gas operations maintained average daily gross operated production of 84.9 thousand barrels of oil equivalent per day, with total production for the quarter at 7.8 million barrels of oil equivalent.

Strategic Positioning and Market Performance

Vedanta's Q3FY26 results underscore the company's position as a global leader in critical minerals and transition metals. As the world's largest integrated zinc producer, fourth-largest global silver producer, and one of the top aluminium producers globally, the company continues to play a pivotal role in supplying essential materials for the energy transition. The strong operational performance was reflected in the stock price, with shares ending at ₹616.55, up by ₹2.31 or 13.90% on the BSE.

Vedanta received a credit rating reaffirmation from ICRA Limited on January 02, 2026, maintaining its existing ratings despite the company's ongoing business demerger process. The rating agency published its decision around 04:00 PM IST, providing continuity for the mining and metals conglomerate during a period of significant corporate restructuring.

Credit Rating Details

ICRA Limited reaffirmed Vedanta's credit ratings across multiple categories, maintaining the company's financial standing in the market.

The rating reaffirmation comes at a crucial time as Vedanta undergoes a major corporate transformation through the demerger of its various business segments.

Demerger Process Acknowledgment

ICRA specifically noted the ongoing demerger of Vedanta's businesses into separate standalone listed entities. The rating agency emphasized that despite this significant corporate restructuring, the credit ratings remain unchanged. This decision reflects ICRA's assessment that the demerger process does not currently impact the company's creditworthiness.

The rating agency indicated it will maintain active oversight of the demerger proceedings. ICRA stated it will continue monitoring the development of the demerger process and the associated timelines, with provisions to take appropriate rating actions as required based on future developments.

Regulatory Compliance

Vedanta communicated this rating reaffirmation to both major Indian stock exchanges - BSE Limited and National Stock Exchange of India Limited - in compliance with Regulation 30 and 51 of the SEBI Listing Regulations. The company provided detailed rationale from ICRA, accessible through the rating agency's official documentation.

Market Implications

The rating reaffirmation provides stability for Vedanta's stakeholders during the complex demerger process. By maintaining the ICRA AA/Watch Developing/ICRA A1+ ratings, the company retains its established credit profile while navigating the separation of its diverse business portfolio into independent entities.

The "Watch Developing" component of the rating indicates ICRA's active monitoring stance, reflecting the dynamic nature of the ongoing corporate restructuring while maintaining confidence in the company's current financial position.