Vedanta Aluminium shares climb 4% as Q1 FY27 profit jumps 205% YoY

Shares of Vedanta Aluminium Metal Ltd surged 5.41 per cent in Thursday's fag-end trade to hit a high of Rs 463.55 after the company reported a strong performance for the June quarter (Q1 FY27). The stock eventually settled 3.77 per cent higher at Rs 456.35. 

The recently demerged Vedanta Group company reported a profit after tax (PAT) of Rs 6,597 crore for the quarter, up 33 per cent quarter-on-quarter (QoQ) and 205 per cent year-on-year (YoY), reflecting strong operating performance.

Revenue rose to a record Rs 21,105 crore, increasing 13 per cent QoQ and 45 per cent YoY, driven by higher volumes and improved realisations.

EBITDA also touched a record high of Rs 10,499 crore, up 24 per cent sequentially and 134 per cent from the year-ago period, supported by cost efficiencies. The company's EBITDA margin expanded to a record 50 per cent during the quarter.

Vedanta Aluminium said it further strengthened its balance sheet through deleveraging, with its net debt-to-EBITDA ratio improving to 0.9x from 1.3x in Q4 FY26. It added that both CRISIL and ICRA upgraded its credit rating to AA+ (Stable).

On the operational front, aluminium production reached an all-time high of 632 KT, rising 3 per cent QoQ and 5 per cent YoY. Production of value-added products (VAP) also hit a record 389 KT, up 4 per cent sequentially and 14 per cent annually.

Alumina production stood at 826 KT during the quarter, registering a 41 per cent YoY increase, which the company attributed to enhanced refining capacity and improved asset utilisation.

Commenting on the quarterly performance, Anup Agarwal, CFO, Vedanta Aluminium, said, "Our inaugural quarter as an independent company marks a strong start, with record revenue at Rs 21,105 crore, EBITDA at Rs 10,499 crore, and PAT at Rs 6,597 crore. We enter this phase from a position of robust financials, with a strengthened balance sheet and improved credit profile, offering increased flexibility for our strategic growth ambitions."

According to the company, it is India's largest aluminium producer and is focused on building a fully integrated, globally competitive aluminium business.

Separately, Vedanta Aluminium's board has approved the execution of definitive agreements with Serentica Renewable India 9 Pvt Ltd (SRI9PL) for integration of a Battery Energy Storage System (BESS) having a capacity of 150 MW Round-The-Clock (RTC) (with 95 per cent assured supply) by utilising the existing 600 MW Solar Power Delivery Agreement (PDA).

It stated that the proposed project will enable conversion of the existing solar power arrangement into an RTC renewable power solution, thereby ensuring reliable renewable power supply during non-solar hours and supporting the Company's renewable energy transition, decarbonization roadmap, and regulatory compliance requirements.

As part of the Group Captive structure, the company also said it proposes to infuse Rs 165 crore, representing 26 per cent investment in the project, in compliance with the group captive provisions under the applicable regulations.

"The BESS project is proposed to be developed on a BOOM (Build-Own-Operate-Maintain) basis and power shall be supplied under a long-term arrangement for a period of 25 years from the date of commissioning of the project. The SPV is expected to start delivering the power within 12 months of the PDA signing. The project will be funded on 70:30 debt-to-equity basis," the company further stated.