Vedanta Ltd. has released its financial results for the second quarter, revealing a significant drop in net profit despite revenue growth.

Financial Performance

Vedanta reported a quarterly net profit of ₹18.00 billion, marking a 58% decrease from ₹43.00 billion in the same period last year. This figure fell short of analyst estimates, which had projected a net profit of ₹34.64 billion.

Despite the profit decline, the company's revenue grew to ₹399.00 billion from ₹376.00 billion year-over-year, surpassing analyst expectations of ₹382.50 billion.

EBITDA and Margins

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed improvement, increasing to ₹114.00 billion from ₹98.28 billion in the previous year. This figure exceeded analyst estimates of ₹105.90 billion.

Vedanta's EBITDA margin also saw an uptick, rising to 28.59% from 26.11% in the comparable period.

Profit Before Tax and Exceptional Items

The company's profit before tax increased to ₹70.15 billion from ₹57.60 billion year-over-year. However, Vedanta recorded an exceptional item of ₹20.70 billion, which significantly impacted its bottom line.

Dividend Declaration

Despite the profit decline, Vedanta's Board has approved a second interim dividend of ₹16.00 per equity share for the current fiscal year. This brings the total dividend declared for the year to ₹23.00 per share, demonstrating the company's commitment to shareholder returns.

Market Outlook

While Vedanta has shown revenue growth and improved EBITDA, the substantial drop in net profit may concern investors. The impact of the exceptional item highlights the challenges faced by the company in the current market environment.

Investors and analysts will likely focus on:

1. The nature and potential recurrence of the exceptional items
2. Strategies to improve profitability in future quarters
3. The sustainability of the dividend policy given the profit decline
4. Operational performance across various segments of the business

Conclusion

Vedanta's Q2 results present a mixed picture, with strong top-line growth and improved operational efficiency offset by a significant decline in net profit. The company's ability to navigate market challenges and improve its bottom line will be crucial in maintaining investor confidence in the coming quarters.

Vedanta Ltd. is set to release its financial results for the second quarter and first half of fiscal year 2026 on October 31, 2025. The mining and metals conglomerate has scheduled an earnings call with investors and analysts from 5 p.m. to 6 p.m. on the same day.

Recent Performance and Stock Movement

In the previous quarter, Vedanta reported a consolidated profit after tax of Rs 4,457.00 crore, marking a 12.5% year-on-year decline. However, the company's total income saw a 5.8% increase, reaching Rs 38,809.00 crore.

Vedanta's stock has shown positive momentum in recent trading sessions:

• The shares have gained 2.79% in the past five trading sessions
• Over the past month, the stock has risen by 8.68%
• In December 2024, Vedanta's stock hit a 52-week high of Rs 526.95

Corporate Actions and Debt Repayment

Vedanta has fully repaid its facilities under a previous agreement dated December 13, 2023 (as amended on January 25, 2024). This repayment has led to the release of several encumbrances and restrictions:

1. All encumbrances created over Vedanta Limited's shares have been released as of October 27, 2025.
2. Restrictions imposed on Vedanta Limited by the facilities agreement have been lifted.
3. A global deed of release was executed on October 27, 2025, involving various Vedanta group entities and financial institutions.

Insider Trading Window

The company has announced that the trading window for designated persons will remain closed from October 1 to November 2, 2025, in line with regulatory requirements surrounding the quarterly results announcement.

Investors and analysts will be keenly watching Vedanta's Q2FY26 results, particularly in light of the company's recent debt repayment and the positive stock performance. The earnings call scheduled for October 31 is expected to provide further insights into the company's financial health and future outlook.