Vedanta's margin reaches 30.72% as quarterly profit rises 19.79% QoQ
Revenue grew faster than expenses sequentially, while lower interest costs supported profit; the stock's initial gain was large relative to its recent results-day history.
Filed 29 Apr 2026, 14:42 IST · Vedanta Ltd (VEDL)
Key takeaways
- Vedanta's consolidated operating margin expanded 1.34 percentage points QoQ to 30.72%, its fourth consecutive quarterly increase.
- Consolidated net profit rose 19.79% QoQ despite a 5.43-percentage-point rise in the tax rate, helped by lower interest costs.
- The stock gained 4.64% on results day, an unusually positive response against its 8-result history in which 6 reactions were negative.
Price around the results
Revenue momentum lifted the consolidated operating margin
Consolidated revenue rose 5.31% QoQ, while expenses grew 3.31%, allowing operating profit to increase 10.09% and margin to widen by 1.34 percentage points. The margin also improved 2.38 percentage points YoY even as revenue fell 39.17%, because expenses declined faster than revenue. At 30.72%, Vedanta's margin was 11.95 percentage points above the 18.77% median for the 51 Commodities peers that had reported.
Lower interest costs supported the sequential profit rise
Interest expense fell 25.48% QoQ and depreciation declined 6.46%, helping profit before tax rise 24.48% even as the tax rate increased 5.43 percentage points. Other income contributed 7.08% of pre-tax profit, so it was a meaningful but not dominant part of reported earnings. YoY, interest expense was down 71.47% and depreciation was down 55.42%, while net profit increased 88.51% despite a 11.25% decline in profit before tax.
Capacity additions and alumina output shaped the operating backdrop
Management said Vedanta deployed Rs 14,918 crore of growth capex in FY26 and commissioned capacities including Lanjigarh Train II, the new BALCO smelter, downstream expansions at Jharsuguda, the Debari roaster and 1.3 GW of power capacity. The company also reported record quarterly alumina production of 882 kt, up 104% YoY. Management said it had approved Rs 12,000 crore for a 250 KTPA integrated zinc metal complex.
Results-day gain was unusual for Vedanta
The stock rose 4.64% on the results date, with a 10.39% gain after five sessions and a 19.19% gain after 15 sessions; the results-day volume was 2.97 times the reference level. That reaction was notably stronger than Vedanta's recent pattern: across eight results, six reactions were negative and the median absolute move was 2.64%. The reported reaction overlapped with a corporate action, which makes the immediate move less clean as a results-only signal.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹24,609 cr | ₹23,369 cr | +5.31% | -39.17% |
| Other income | ₹418 cr | ₹293 cr | +42.66% | -45.14% |
| Expenses | ₹17,050 cr | ₹16,503 cr | +3.31% | -41.18% |
| Operating profit | ₹7,559 cr | ₹6,866 cr | +10.09% | -34.07% |
| Operating margin (%) | 30.72% | 29.38% | — | — |
| Interest | ₹737 cr | ₹989 cr | -25.48% | -71.47% |
| Depreciation | ₹1,332 cr | ₹1,424 cr | -6.46% | -55.42% |
| Profit before tax | ₹5,908 cr | ₹4,746 cr | +24.48% | -11.25% |
| Tax | ₹1,658 cr | ₹1,074 cr | +54.38% | -2.24% |
| Net profit | ₹9,352 cr | ₹7,807 cr | +19.79% | +88.51% |
| EPS (₹) | ₹17.15 | ₹14.62 | +17.31% | +92.26% |
Operating margin of 30.72% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.64% | +3.88% |
| Next session | -1.85% | — |
| 5 sessions | +10.39% | +9.01% |
| 15 sessions | +19.19% | — |
| 30 sessions | +11.92% | — |
Volume on the results session was 2.97× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Quarterly alumina production reached a record 882 kt, up 104% year on year.
Expansion
- Vedanta deployed ₹14,918 crore of growth capex and commissioned several new capacities in FY26.
- Vedanta has approved ₹12,000 crore for a 250 KTPA integrated zinc metal complex.
New orders
- The power business secured a five-year, 500 MW PPA for Meenakshi and Athena.
New initiatives
- Hindustan Zinc partnered with Tata Steel and Silox India to scale low-carbon zinc adoption.
- Vedanta signed a PNG agreement with IOCL to replace LPG at ESL.
Problems & risks
- Oil and gas operating expense increased 8% QoQ, primarily because of lower production volumes.
- Vedanta challenged the rejection of its PSC extension application before the Delhi High Court.
What to watch
- Whether consolidated operating margin holds above 30.72% after four consecutive quarterly increases.
- Whether oil and gas operating expense moderates from the 8% QoQ increase management attributed to lower production volumes.
- Progress on the Rs 12,000 crore, 250 KTPA integrated zinc metal complex approved by management.