Vedanta Aluminium Posts 205% Profit Surge in First Quarter as Independent Entity

Record Financial Results Mark Strong Independence

Vedanta Aluminium Metal Limited has delivered exceptional financial results for the quarter ended June 30, 2026, marking a robust debut as an independent listed company following its demerger from Vedanta Limited. The company announced record revenue of INR 21,105 crore, representing a 13% increase quarter-on-quarter and a 45% surge year-on-year.

The Board of Directors approved the company's first interim dividend of INR 8 per equity share, translating to a cumulative dividend payout exceeding INR 3,000 crore for the quarter. This represents an uncommon achievement for a newly independent entity.

The demerger became effective on May 1, 2026, creating independent sector-focused entities spanning aluminium, power, oil and gas, and iron and steel alongside the residual Vedanta Limited business. Vedanta shareholders received one equity share of Vedanta Aluminium Metal Limited for every share held on the record date. The four new entities commenced trading on stock exchanges on June 15, 2026.

Financial Performance Highlights

EBITDA reached an all-time high of INR 10,499 crore, up 24% quarter-on-quarter and 134% year-on-year, with the EBITDA margin expanding to a record 50%. Profit after tax climbed to INR 6,597 crore, marking a 33% increase quarter-on-quarter and a 205% surge year-on-year.

The company strengthened its balance sheet substantially, with Net Debt-to-EBITDA improving to 0.9x from 1.3x in the previous quarter. Both CRISIL and ICRA upgraded its credit rating to AA+ (Stable), reflecting enhanced financial stability.

Operational Excellence

On the operational front, aluminium production reached a record 632 KT, while value-added products production achieved an all-time high of 389 KT. Alumina production increased 41% year-on-year to 826 KT, supported by expanded refining capacity and improved asset utilisation.

These operational gains come as India's aluminium production capacity stands at approximately 4.5 million tonnes annually. However, the country imports over 1.5 million tonnes of aluminium value-added products each year, indicating significant domestic manufacturing opportunities in specialized segments that Vedanta is positioned to capture.

Market Conditions Support Growth

The strong performance reflects favourable market dynamics. The global aluminium market is expected to remain in deficit of approximately 140-200 thousand tonnes in 2026, driven by constrained supply growth and structural demand increases from energy transition, electric vehicles, and infrastructure development.

LME cash aluminium prices reached above USD 3,200 per tonne by early August 2026, supported by supply constraints and rising demand. Analyst forecasts expect prices to average USD 2,945 per tonne for the full year 2026.

India ranked second globally in aluminium production in 2024 with approximately 4.2 million metric tons of output, after China, which maintains a self-imposed production cap of 45 million tonnes. This production constraint in the world's largest producer has contributed to tighter global supply conditions.

Global aluminium demand is estimated at 72-74 million tonnes annually and is projected to grow at 3-4% per year over the next decade, driven by energy transition applications including electric vehicles, renewable energy infrastructure, and sustainable packaging.

Strategic Outlook

Rajesh Kumar, Whole-Time Director and CEO, stated:

Our first quarter as an independent company reflects disciplined execution, operational resilience and a clear long-term strategy. Our focus on resource security, integrated operations and value-added products continues to strengthen our competitive position and support sustainable growth.

The company plans to lift its aluminium capacity to around 6 million tonnes per year from current levels, focusing on backward integration and cost controls to maintain its position among the most cost-efficient producers globally.

Anup Agarwal, CFO, added:

We begin this new phase with record financial performance, a stronger balance sheet and an improved credit profile. These provide a solid foundation to pursue growth opportunities and meet rising global demand for aluminium across energy transition, infrastructure, transportation, packaging and advanced manufacturing.

Vedanta Aluminium serves customers in more than 60 countries through its integrated aluminium and alumina operations.