Vedanta shares rally 5% on 'best-ever financial performance'; net debt/EBITDA ratio at 0.95x in Q4, best in 14 quarters

In its earnings press release, Vedanta said it registered a record-best profit after tax (PAT) of ₹9,352 crore, up 89% YoY and 20% QoQ.

It added that it clocked best-ever quarterly revenue of ₹51,524 crore, up 29% YoY and 12% QoQ.

Vedanta said it recorded the highest-ever quarterly EBITDA of ₹18,447 crore, up 59% YoY and 22% QoQ, and the best-ever EBITDA margin of 44%, up by 915 bps YoY and 306 bps QoQ.

Additionally, it saw a record return on capital employed at nearly 32%, improved by 539 bps YoY.

FCF (pre-capex) stood at ₹11,930 crore, up 53% YoY.

The net debt/EBITDA ratio at 0.95x, the best in 14 quarters, improved significantly from 1.22x in Q4 FY25.

The net debt/EBITDA ratio is one of the most closely tracked leverage metrics for capital-intensive companies like Vedanta Limited.

It measures how many years a company would take to repay its net debt using its operating earnings (EBITDA).

Net debt = Total debt – cash & equivalents EBITDA = Earnings before interest, tax, depreciation, amortisation

For metals, mining, and commodities (which are cyclical), analysts note:

• Below 2x → Comfortable
• 2x – 3x → Manageable but needs monitoring
• Above 3x → Elevated risk (especially in downturns)

Vedanta also said it paid a dividend of ₹11/share in Q4 FY26.

Vedanta Financial Highlights FY26

• Best-ever annual revenue at ₹1,74,075 crore, up 15% YoY

• Record-best annual EBITDA at ₹55,976 crore, up 29% YoY

• Highest-ever annual PAT at ₹25,096 crore, up 22% YoY

• Total capital expenditure in the year stood at ₹14,918 crore, focused on volume expansion, cost compression, and supply chain integration.

• Cash and cash equivalents stood at ₹28,485, improving by 38% YoY on the back of free cash flow (pre-capex) of ₹26,013 crore.

• Credit Rating reaffirmed at AA/Watch with Developing Implications by both CRISIL & ICRA.

• Total Shareholder Return of 48.6%, 2.1x that of the Nifty Metal Index, and paid a dividend of ₹34/share

What the top official said

Arun Misra, Executive Director, Vedanta, said, “FY26 was a year of strong execution for Vedanta, with record operational performance across the portfolio. We delivered 2.9 million tonnes of alumina, 2.46 million tonnes of aluminium, 1.1 million tonnes of mined metal at Zinc India, 895 kt of pig iron and 101 kt of ferrochrome, reflecting improved operating efficiency alongside the ramp up of new capacities."

During the year, the company deployed ₹14,918 crore of growth capex, commissioning key projects including Lanjigarh Train II, the new BALCO smelter, downstream expansions at Jharsuguda, the Debari roaster at Zinc India, and 1.3 GW of power capacity.

"Our continued focus on operational excellence resulted in lowest costs in last five years at Aluminium and Zinc business," Misra added.

Business Highlights – FY26

Aluminium

• Record aluminium production at 2,456 kt (+1% YoY), driven by operational efficiencies
• Record alumina production at Lanjigarh refinery: 2,916 kt (+48% YoY)
  • Exit run rate reached 4 MTPA
• Lowest cost of production (COP) in 5 years at $1,752/t (↓5% YoY)

Zinc India

• Best-ever mined metal production at 1,114 kt (+2% YoY)
• Record refined zinc production at 851 kt (+3% YoY)
• Lowest COP in 5 years at $959/t (↓9% YoY)

Zinc International

• Mined metal production rose 27% YoY to 225 kt
• Gamsberg production surged 39% YoY to 185 kt

Oil & Gas

• Average gross operated production at 87.2 kboepd
• New gas discovery at Ambe Block (West Coast)
  • Adds ~13 mmboe of reserves & resources

Power

• TSPL plant availability stood at 83%
• Secured 5-year, 500 MW PPA for Meenakshi and Athena

Iron Ore, Steel & Others

• Record pig iron production at 895 kt (+10% YoY)
• Ferro chrome output at 101 kt (+21% YoY)
• Cathode production at 170 kt (+14% YoY)