Vedanta Reports 88% Surge in Q4 Profit, Plans Demerger
Vedanta ends higher after Q4 PAT surges 88% YoY to Rs 9,352 cr
Business Standard
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Vedanta's consolidated net profit soared 88.51% year-on-year to ₹9,352 crore in Q4 FY26, driven by a 47.48% increase in revenue. The company plans to implement a demerger effective May 1, 2026, distributing shares in four separate businesses to shareholders.
- 01Vedanta's Q4 FY26 net profit increased by 88.51% to ₹9,352 crore.
- 02Revenue from operations rose 47.48% to ₹24,609 crore.
- 03EBITDA grew 59% to ₹18,447 crore with an expanded margin of 44%.
- 04The company is set to implement a demerger on May 1, 2026, creating four distinct entities.
- 05Vedanta's net debt to EBITDA improved to 0.95x, indicating a stronger balance sheet.
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Vedanta Limited, a global leader in critical minerals and energy transition metals, reported a remarkable 88.51% increase in consolidated net profit, reaching ₹9,352 crore for the fourth quarter of FY26, compared to the same quarter last year. This surge was fueled by a 47.48% rise in revenue from operations, totaling ₹24,609 crore. The company's profit before tax also saw a significant increase of 77.36% year-on-year, amounting to ₹5,908 crore. In addition, EBITDA rose by 59% to ₹18,447 crore, with an EBITDA margin expanding to 44% from 35% in Q4 FY25. On an annual basis, Vedanta's consolidated net profit for FY26 was ₹25,096 crore, reflecting a 22.21% increase from the previous year.
Arun Misra, executive director of Vedanta, emphasized the company's strong operational performance, highlighting record outputs across various sectors. The company invested ₹14,918 crore in growth capital expenditures, commissioning several key projects including expansions in aluminium and zinc production. Vedanta's chief financial officer, Ajay Goel, noted that the company achieved all-time highs in revenue, EBITDA, and profit after tax, positioning itself for future growth.
Looking ahead, Vedanta's board approved a demerger scheme, effective May 1, 2026, which will see shareholders receive shares in four distinct businesses: aluminium, power, oil and gas, and iron ore, in a 1:1 ratio. This strategic move aims to enhance operational focus and shareholder value.
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The demerger may lead to more focused operations and potentially higher shareholder value, impacting investors positively.
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