Vedanta Aluminium reported a 105% year-on-year increase in consolidated net profit to Rs 6,187 crore for the September quarter, supported by record aluminium production, higher sales volumes, improved realisations and lower production costs. The company’s results point to stronger operating performance as it expands capacity and seeks to increase domestic bauxite supplies.
Revenue from operations rose 41% to Rs 22,066 crore from Rs 15,670 crore in the corresponding quarter last year. EBITDA increased 83% to Rs 10,192 crore from Rs 5,582 crore, marking the second consecutive quarter in which operating profit exceeded Rs 10,000 crore.
On a sequential basis, however, net profit declined 6% from Rs 6,597 crore in the June quarter. Revenue increased 5% from Rs 21,105 crore, while EBITDA fell 3% from Rs 10,499 crore. The EBITDA margin expanded to 46% from 36% a year earlier but moderated from 50% in the preceding quarter.
Profit before exceptional items rose 117% year on year to Rs 6,550 crore. The company recorded an exceptional charge of Rs 363 crore, net of tax, during the September quarter. Vedanta Aluminium attributed the annual improvement to higher production, a better sales mix, favourable currency movements and lower production costs.
Aluminium production reached a quarterly record of 649,000 tonnes, up 5% from 617,000 tonnes a year earlier and 3% from 632,000 tonnes in the June quarter. Production at the Jharsuguda facility reached 470,000 tonnes, while output at BALCO increased 19% year on year to 178,000 tonnes.
Value-added aluminium production rose 31% to a record 432,000 tonnes. Alumina production at the Lanjigarh refinery also reached a quarterly record of 895,000 tonnes, up 37% from the same period last year. The company’s aluminium production cost declined 6% to $1,722 per tonne from $1,826 per tonne, although it increased 1% sequentially.
The benchmark London Metal Exchange aluminium price averaged $3,226 per tonne during the quarter, compared with $2,618 a year earlier. Aluminium is a key industrial input used across construction, transport, power and manufacturing, making production capacity and raw-material access important to the broader supply chain.
Vedanta Aluminium continued work on its expansion projects during the quarter, including the operationalisation of the second zone of BALCO’s 435,000-tonne annual capacity expansion. It also obtained consent to operate for its Sijimali bauxite mine, which the company identified as an important step towards securing domestic raw-material supplies.
The Lanjigarh refinery is targeting alumina production of more than one million tonnes in the December quarter. Vedanta Aluminium expects domestic bauxite to account for more than 90% of its raw-material mix by the end of FY27, compared with 37% during the September quarter.
The company’s consolidated net debt declined by Rs 3,090 crore to Rs 26,442 crore as of September 30, from Rs 29,532 crore at the end of June. Its net debt-to-EBITDA ratio improved to 0.7 times from 0.9 times. Cash and cash equivalents stood at Rs 6,318 crore, while consolidated gross debt was Rs 32,800 crore.
Finance costs declined 4% year on year to Rs 911 crore from Rs 949 crore, supported by lower average borrowings. Vedanta Aluminium CEO Rajesh Kumar said record production and progress on bauxite resources would support the company’s expansion plans. CFO Anup Agarwal said cash generation and capital management helped reduce debt while the company continued investing in expansion projects.
