Vedanta Revenue Segmentation: What drove 89% earnings growth in Q4?

Synopsis: The share of the company rose after strong FY26 results, showing record revenue, EBITDA and PAT, along with lower costs, higher production, and reduced debt

The shares of this company, which is a major global natural resources conglomerate with operations in India, South Africa, Namibia, and Australia, gained investor traction after a strong Q4.

With a market capitalization of Rs 3,03,094 crore, Vedanta Ltd’s share on Wednesday made a day high of Rs 779.45 per share, up by 5.1 percent from its previous day’s close of Rs 739.20 per share. The share of this company has given a return of 201 percent over the last five years.

Result Overview

• QoQ View: revenue from operations in Q4 FY26 rose to Rs 51,524 crore from Rs 45,899 crore in Q3 FY26, up about 12.3 percent, indicating strong top-line growth. EBITDA increased to Rs 18,447 crore in Q4 FY26 from Rs 15,171 crore in Q3 FY26, a rise of around 21.6 percent, reflecting improved operating performance. Profit after tax also grew to Rs 9,352 crore in Q4 FY26 from Rs 7,807 crore in Q3 FY26, up nearly 19.8 percent, showing healthy sequential earnings growth. 
• YoY View: On a YoY basis, revenue from operations in Q4 FY26 rose to Rs 51,524 crore from Rs 39,789 crore in Q4 FY25, up about 29.5 percent, indicating strong top-line expansion. EBITDA increased to Rs 18,447 crore in Q4 FY26 from Rs 11,618 crore in Q4 FY25, a rise of nearly 58.8 percent, reflecting sharp operating leverage. Profit after tax also surged to Rs 9,352 crore in Q4 FY26 from Rs 4,961 crore in Q4 FY25, up around 88.5 percent, showing strong bottom-line growth. 
• Fiscal Year comparison: revenue from operations in FY26 rose to Rs 1,74,075 crore from Rs 1,50,725 crore in FY25, up about 15.5 percent, reflecting steady business expansion. EBITDA increased to Rs 55,976 crore in FY26 from Rs 43,541 crore in FY25, a rise of nearly 28.6 percent, indicating strong operating leverage. Profit after tax also improved to Rs 25,096 crore in FY26 from Rs 20,535 crore in FY25, up around 22.2 percent, showing healthy growth in overall profitability.

Business Highlights FY26

• Aluminium and Zinc India deliver record operational efficiency: Aluminium production rose to 2,456 kt, up 1 percent YoY, supported by operational efficiency, while alumina output surged 48 percent to 2,916 kt with strong refinery ramp-up. Zinc India also posted record performance, with mined metal at 1,114 kt and refined zinc at 851 kt, both at lifetime highs, while COP reduced significantly across both segments.
• Zinc International and Oil & Gas show strong growth: Zinc International mined metal production jumped 27 percent YoY to 225 kt, driven by a 39 percent rise in Gamsberg output. In Oil & Gas, average production stood at 87.2 kboepd, supported by a new gas discovery at the Ambe Block adding around 13 mmboe to reserves.
• Power segment stabilises with improved visibility: Power operations saw TSPL plant availability at 83 percent, ensuring steady generation performance. The business also secured a 5-year 500 MW PPA for Meenakshi and Athena, improving long-term revenue visibility and stability in the power portfolio.
• Steel, iron ore and others post record output: Iron ore pig iron production reached 895 kt, up 10 percent YoY, while ferro chrome output rose 21 percent to 101 kt. Cathode production also increased 14 percent to 170 kt, reflecting strong momentum across diversified metal and industrial operations.

Profit growth was achieved through several key drivers

Higher commodity prices and better realisations: Profit growth was supported by stronger LME prices and improved premiums across metal products. A better pricing environment helped boost overall revenue realisation and contributed meaningfully to margin expansion during the year.

Sharp reduction in production costs: Cost efficiency played a key role, with Aluminium CoP falling 5 percent YoY to $1,752 per tonne and Zinc India CoP declining 9 percent YoY to $959 per tonne. These multi-year lows significantly improved operating margins.

Lower finance costs support earnings: Finance costs declined 21 percent YoY in Q4 to Rs 2,039 crore, driven by lower average borrowings and reduced interest rates. This directly supported higher net profitability during the period.

Strong operational performance across segments: Record production across key businesses strengthened earnings, including the highest-ever mined and refined metal output in Zinc India. Zinc International also grew 27 percent YoY, reflecting broad-based volume expansion across the portfolio.

Management highlighted FY26 as a strong execution year with record operational performance across key businesses, including alumina at 2.9 million tonnes, aluminium at 2.46 million tonnes, zinc mined metal at 1.1 million tonnes, and record output in pig iron and ferrochrome, supported by capacity ramp-ups and Rs 14,918 crore growth capex 

CFO noted record financial performance with revenue up 15 percent YoY to Rs 1,74,075 crore, EBITDA up 29 percent to Rs 55,976 crore, and PAT up 22 percent to Rs 25,096 crore, along with improved leverage at 0.95x and strong credit ratings, while maintaining shareholder returns through dividends and 48.6 percent total shareholder return. 

About the Company 

Vedanta Limited is the world’s leading producer of metals, oil & gas, critical minerals, power and technology. The company supplies essential materials that power the global energy transition, emerging technologies and the green economy of the future.

Its diversified portfolio supports industrial growth, energy security and technological advancement across global value chains. With operations spanning India, Africa, the Middle East and East Asia, Vedanta is embedded in high-growth geographies, shaping the next era of global development.

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