Vedanta Aluminium's 48.14% margin is 29.42 points above peer median
Record 389 KT value-added aluminium output and 826 KT alumina production supported the quarter, while management flagged input inflation and a $50–100/t war-related cost risk.
Filed 30 Jul 2026, 14:25 IST · Vedanta Aluminium Metal Ltd (VAML)
Key takeaways
- Consolidated operating margin of 48.14% stood 29.42 percentage points above the median for 32 reported commodity peers.
- Management said alumina production reached 826 KT, up 41.00% YoY, while value-added aluminium output hit a record 389 KT.
- Management guided FY27 aluminium production to 2.6–2.7 MnT and hot-metal cost of production to $1,650–1,700 per tonne.
Price around the results
Output gains underpin the Q1 operating profile
Management said alumina production rose to 826 KT, up 41.00% YoY, supported by higher volumes from the 3 MTPA circuit. It also reported record value-added aluminium production of 389 KT, indicating a greater contribution from higher-value products. Management said input commodity inflation marginally offset EBITDA growth.
Operating margin remains far above the commodity peer set
The consolidated operating margin of 48.14% was 29.42 percentage points above the 18.72% median among 32 commodity peers that had reported the quarter. Management said the company anticipates an additional $50–100 per tonne cost impact from the war in H1 FY27. This makes cost control and the company’s stated hot-metal cost range of $1,650–1,700 per tonne important markers for the rest of FY27.
Expansion and production targets define the next checkpoints
Management said it is targeting more than 900 KT of alumina production in Q2 FY27. The company also said the Kuraloi Coal Mine is targeted for commissioning in Q2 FY27, while the Sijimali Bauxite and Ghogharpalli Coal mines are targeted for the second half of FY27. Management said the Lanjigarh refinery expansion is progressing from 3.5 to 5 MTPA through Train-2.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹21,393 cr |
| Other income | ₹309 cr |
| Expenses | ₹11,094 cr |
| Operating profit | ₹10,299 cr |
| Operating margin (%) | 48.14% |
| Interest | ₹1,001 cr |
| Depreciation | ₹775 cr |
| Profit before tax | ₹8,832 cr |
| Tax | ₹2,235 cr |
| Net profit | ₹6,597 cr |
| EPS (₹) | ₹14.39 |
Operating margin of 48.14% compares with a Commodities sector median of 18.72% across 32 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Alumina production was 826 KT, supported by higher volumes from the 3 MTPA circuit.
- Value-added aluminium production reached a record 389 KT.
Guidance & outlook
- FY27 aluminium production guidance is 2.6–2.7 MnT.
- FY27 alumina production guidance is 4.0–4.1 MnT.
- FY27 hot metal cost-of-production guidance is $1,650–$1,700 per tonne.
- The company is targeting more than 900 KT of alumina production in Q2 FY27.
Expansion
- Kuraloi Coal Mine is targeted for commissioning in Q2 FY27.
- Sijimali Bauxite Mine is targeted for commissioning in the second half of FY27.
- Ghogharpalli Coal Mine is targeted for commissioning in the second half of FY27.
- The Lanjigarh refinery expansion is progressing from 3.5 to 5 MTPA through Train-2 expansion.
Competition
- Lanjigarh was placed among the top three alumina refineries globally.
Problems & risks
- Input commodity inflation marginally offset EBITDA growth.
- The company anticipates an additional $50–100 per tonne cost impact from the war in H1 FY27.
What to watch
- Whether Q2 FY27 alumina production exceeds management's 900 KT target.
- Whether operating margin holds above 48.14% as input commodity inflation and the disclosed $50–100 per tonne war-related cost impact are monitored.
- Whether the hot-metal cost of production remains within management's FY27 guidance of $1,650–1,700 per tonne.