Vedanta's tax contribution to government rises 13% to ₹62,722 crore in FY26

Mining and metals major Vedanta Ltd contributed ₹62,722 crore to the national exchequer in FY26, marking a 13.3% year-on-year increase and its second-highest annual contribution on record, according to the company's 11th Tax Transparency Report. The contribution accounted for around 36% of Vedanta's consolidated revenue from operations during the fiscal year. 

The company said its cumulative contribution to the exchequer over the past decade has reached ₹4.83 lakh crore, placing Vedanta among India's top three private-sector contributors to the national exchequer. 

The higher tax contribution came on the back of Vedanta's strongest-ever financial performance in FY26. The company reported record revenue of ₹1,74,075 crore, up 15% from the previous year, while EBITDA rose 29% to ₹55,976 crore and profit after tax increased 22% to ₹25,096 crore. Vedanta also strengthened its balance sheet, with its net debt-to-EBITDA ratio improving to 0.95 times from 1.22 times, the best level in 14 quarters. 

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Zinc, aluminium and oil & gas lead contributions

Among Vedanta's business segments, zinc emerged as the largest contributor to the exchequer, accounting for ₹19,053 crore during FY26. This was followed by Vedanta Aluminium, which contributed ₹15,788 crore, and Vedanta Oil & Gas, which added ₹11,697 crore.

The company attributed its performance to strong operations across its diversified portfolio, which includes zinc, lead, silver, aluminium, copper, iron ore, steel, power, nickel, chrome, and oil and gas businesses. 

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Break-up of tax payments

The Tax Transparency Report provides a detailed breakdown of Vedanta's payments to governments at various levels.

The company paid ₹14,840 crore as government royalties and profit petroleum, including royalties to states such as Rajasthan, Odisha, Gujarat, Andhra Pradesh, Chhattisgarh, Goa, Karnataka and Assam for mining and hydrocarbon production.

Taxes on income and capital amounted to ₹8,290 crore, while other taxes borne stood at ₹11,897 crore, comprising export and import duties, oil cess, electricity duty and ineligible GST.

Vedanta also collected and remitted ₹21,777 crore in indirect taxes, including CGST, SGST and IGST, while withholding taxes totalled ₹3,188 crore. Additionally, the Government of India received ₹1,180 crore as dividends through its 27.92% stake in Hindustan Zinc Ltd, the company said. 

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Focus on tax transparency

Vedanta said the report marks the 11th consecutive year of voluntary tax transparency disclosures, which it described as a key part of its environmental, social and governance (ESG) framework.

According to the company, its tax reporting aligns with the B-Team Responsible Tax Principles and the Extractive Industries Transparency Initiative (EITI), reflecting its commitment to responsible corporate governance and stakeholder transparency. 

The company said its tax contributions support public finances through direct and indirect taxes, royalties, profit petroleum and dividends, while reinforcing its role in India's economic development and the government's Viksit Bharat vision.

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