Vedanta Limited , a leading diversified natural resources company, has recently secured interim protection from the Bombay High Court against the recovery of penalty amounts related to an appeal filed against an order from the Appellate Tribunal under SAFEMA (Smugglers and Foreign Exchange Manipulators Act), New Delhi. This development comes alongside the company's announcement of robust financial results for the first quarter.

Court Protection Against SAFEMA Penalty

The Bombay High Court, in its order dated July 30, granted interim protection and injunction against penalty recovery from Vedanta Limited and other appellants, subject to certain conditions. This interim relief follows an appeal filed by the company and individuals before the Bombay High Court, which has already been admitted. The case stems from a previous order issued by the SAFEMA Appellate Tribunal in November.

Strong Financial Performance in Q1

Vedanta Limited has reported impressive financial results for the quarter ended June 30:

• EBITDA Margin: 35%, up 81 basis points YoY, the highest in the last 13 quarters
• The company achieved its highest ever first quarter EBITDA

Operational Highlights

The company demonstrated strong operational performance across its various segments:

• Aluminium: Record alumina production at 587 kt, up 9% YoY
• Zinc India: Highest-ever first quarter mined metal production at 265 kt, up 1% YoY
• Zinc International: Mined metal production jumped 50% YoY to 57 kt
• Oil & Gas: Production at 93.2 kboepd
• Iron Ore: Saleable production up 42% YoY to 1.8 mnt
• Power: Total power sales increased 33% QoQ

Financial Position and Dividend

Vedanta's financial position remains robust:

• Net Debt/EBITDA ratio improved to 1.3x from 1.5x in Q1 of the previous fiscal year
• Cash and Cash Equivalents stood at ₹22,137 crore, up 33% YoY
• The company declared an interim dividend of ₹7 per share

Management Commentary

Anil Agarwal, Chairman of Vedanta, commented on the results: "Our 1Q performance has set a strong foundation for the year ahead. Amidst global market volatility, we delivered the highest-ever first quarter EBITDA. Operationally, we achieved the lowest hot metal cost in the last 16 quarters, lowest-ever 1Q Zinc India CoP, and significant production increases across various segments."

Ajay Goel, CFO of Vedanta, added: "This quarter, we achieved the highest-ever first quarter EBITDA of ₹10,746 crore, reflecting 5% YoY growth. Our adjusted PAT grew 13% YoY to ~5,000 crores. The recent reaffirmation in credit rating at AA by both Crisil and ICRA highlights our financial strength and market confidence in Vedanta's growth story."

As Vedanta Limited navigates legal challenges and continues to deliver strong financial results, the company remains focused on its growth strategy and operational excellence across its diverse portfolio of natural resources businesses.

Vedanta Limited , a leading diversified natural resources company, has obtained interim protection from the Bombay High Court against the recovery of penalty amounts related to an appeal filed against an order from the Appellate Tribunal under SAFEMA (Smugglers and Foreign Exchange Manipulators Act), New Delhi.

Court Order Details

The Bombay High Court, in its order dated July 30, 2025, granted interim protection and injunction against penalty recovery from Vedanta Limited and other appellants, subject to certain conditions. This development follows a previous order from the SAFEMA Appellate Tribunal that was disclosed by Vedanta in November 2024.

Legal Proceedings

The company, along with certain individuals, had filed the appeal before the Bombay High Court. The court noted that the appeals have already been admitted, indicating that the legal process is ongoing.

Financial Implications

While the specific amount of the penalty has not been disclosed, this interim protection provides Vedanta with temporary relief from immediate financial obligations related to the SAFEMA case. This allows the company to continue its operations without the immediate pressure of penalty payments while the legal proceedings are underway.

Company's Performance

Despite the ongoing legal challenges, Vedanta Limited has reported strong financial results for the first quarter:

Operational Highlights

Vedanta also reported several operational achievements across its various business segments:

• Record alumina production of 587 kt, up 9% year-on-year
• Highest-ever first quarter mined metal production in Zinc India at 265 kt
• Mined metal production at Zinc International increased by 50% year-on-year to 57 kt
• Saleable iron ore production rose by 42% year-on-year to 1.8 million tonnes

Management Commentary

Anil Agarwal, Chairman of Vedanta, commented on the company's performance: "Our 1Q performance has set a strong foundation for the year ahead. Amidst global market volatility, we delivered the highest-ever first quarter EBITDA."

The interim protection granted by the Bombay High Court provides Vedanta with some breathing room as it navigates the legal challenges related to the SAFEMA case. Meanwhile, the company's strong financial and operational performance in the first quarter demonstrates its resilience in the face of these challenges.

Investors and stakeholders will likely continue to monitor both the progress of the legal proceedings and Vedanta's ongoing business performance in the coming months.