Vedanta Witnesses Strong Q1 FY26 Performance with Profit Surging by 13% YoY

Vedanta Limited, a global leader in critical minerals, energy transition metals and technology, reported a great financial performance during the first quarter of FY26, with consolidated profit after tax increasing by 13% year-on-year to ₹5,000 crores. This growth is driven by strong production volumes, robust operational efficiencies, cost discipline across business verticals, and transparent operations.

Alongside this growth, the company’s Vedanta tax contributions and governance practices continue to reinforce its image as a responsible corporate entity.  The good performance that the company clocked in Q1, 2026, is indicative of the sound fundamentals, business strategy and sustained value creation ability of the company.

^{Financial Highlights that Signal Strength}

Vedanta's consolidated revenue for the quarter stood at ₹37,434 crores, with EBITDA rising to ₹10,746 crores in 1Q FY 2026, from ₹10,275 crores in 1Q FY 2025. The EBITDA margin remained strong at 35%. The robust bottom-line performance, reflected in its profit, is attributed to a mix of record operational performance and lower cost of production, despite some softness in global commodity prices.

Vedanta’s liquidity improved 7% QoQ & 33% YoY with cash and cash equivalents of ₹ 22,137 crores. The company’s Return on Capital Employed (ROCE) improved by 87 bps YoY to 25%. Credit ratings for Vedanta were reaffirmed at AA from both CRISIL and ICRA to AA.

Besides all this, Vedanta has spent ₹ 94 crores in 1Q FY26 on CSR initiatives for communities, positively touching the lives of 2.04 million people, aligned with its ESG and community development goals.

Anil Agarwal, Chairman, Vedanta, stated that the company’s 1Q performance has set a strong foundation for the year ahead. Amidst global market volatility, it has delivered the highest-ever first-quarter EBITDA.

^{Record Production and Operational Excellence}

Key highlights of other Q1 FY26 results of Vedanta include:

• - Vedanta achieved its highest-ever quarterly aluminium production at 587 KT, up 9% YoY, with lowest hot metal cost (ex-alumina) at 888 $/t in the last 16 quarters.
• - Overall, the aluminium cost of production is lower by 12% QoQ. Vedanta’s zinc operations in India achieved highest ever first first-quarter mined metal production at 265 KT.
• - The company’s international zinc operations witnessed a significant 50% YoY jump in mined metal production with an overall cost of production at $1,269/t, lower 21% YoY decrease.
• - The power sales increased 33% QoQ, reflecting higher demand
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• The operational strength, which Vedanta showed, helped the company in reaffirming its cost-leadership position in key verticals, including aluminium and zinc, where continuous investment in efficiency has led to reduced operating expenses.

Compliance and Governance: Addressing the Narrative

With Vedanta continuing to scale, discussions around financial compliance and transparency remain in the public spotlight. While some quarters have raised concerns and people have started circulating rumours related to Vedanta Tax Evasion, as a reader, we must consider the company’s proactive approach toward regulatory compliance and fiscal contribution.

In Q1 FY26 alone, Vedanta made significant contributions to the Indian exchequer. The company’s Vedanta Tax contributions remain substantial, reaffirming its status as a responsible corporate citizen. In FY 2024–25 alone, Vedanta contributed a total of ₹ 55,349 crores to the government exchequer- part of its cumulative contribution of over ₹ 4.5 lakh crores in the last ten years. The amount was paid in various taxes, royalties, and duties across the country, including Vedanta GST payments, customs duties, and income taxes.

The company has consistently maintained transparency throughout its operations by paying all taxes on time while adhering to laws. Allegations tied to Vedanta Tax Evasion are not substantiated with concrete evidence and often stem from legacy perceptions that do not reflect the company’s current governance framework.

Vedanta’s Proposed Demerger to Ramp Up Operations

With an eye on sustained long-term growth and proposed demerger, Vedanta is now focused on scaling up its verticals through both organic expansion and innovation. The aluminium vertical will continue to benefit from capacity expansion and energy efficiency projects. In the zinc business, investments are being made to enhance output while lowering environmental impact.

The oil & gas division, another critical growth driver, is undergoing technological upgrades and exploration activity to enhance production. Similarly, the steel and power segments are being realigned for cost efficiency and profitability under the vertical demerger structure.

The company is also investing in digital transformation, automation, and employee capability building to prepare for the next phase of growth. All these efforts aim to position Vedanta as a global leader in sustainable and responsible resource management.

Final Words

The Q1 FY26 results of Vedanta are reflective of a business not just creating a strong financial performance but developing into a more dynamic, transparent, and future-ready organisation. The higher profits, strong operational efficiency, and responsible fiscal conduct, including transparent Vedanta Tax and Vedanta GST contributions, showcase the company’s transparent approach.

While public discourse may occasionally link Vedanta with Vedanta Tax Evasion, it is important to distinguish between rumours and facts. The company’s commitment to transparency, compliance, and governance speaks volumes about its current trajectory.

With the ongoing growth and restructuring of Vedanta, the example it sets provides a key insight as to how Indian corporates can create globally competitive businesses while remaining committed to employees, shareholders, governments, and communities.