Rs 945 cr net profit despite Rs 327 cr pre-tax loss
A negative Rs 175 cr tax line and -Rs 290 cr other income made reported profit diverge from operating earnings.
Filed 29 Jul 2026, 15:50 IST · after market close · Vedanta Oil and Gas Ltd (VOGL)
Key takeaways
- Consolidated operating profit was Rs 814 cr at a 32.47% margin, 21.95 percentage points above the 10.52% median for 8 Energy peers.
- Net profit was Rs 945 cr despite a Rs 327 cr loss before tax, with tax reported at -Rs 175 cr.
- Management said Q1 revenue declined 3% QoQ as production fell 5%, while average gross operated output was 77.7 kboepd.
Price around the results
Operating earnings did not flow through to reported profit
The consolidated business generated Rs 814 cr of operating profit, but depreciation of Rs 741 cr and interest of Rs 110 cr pushed profit before tax into a Rs 327 cr loss. Negative other income of Rs 290 cr added to the pressure below operating profit. The Rs 945 cr net profit therefore does not provide a clean read-through to operating performance, given the negative Rs 175 cr tax line.
Lower production drove the quarter’s revenue pressure
Management said revenue declined 3% QoQ because production was lower by 5%. Average gross operated production was 77.7 kboepd, including 63.1 kboepd from Rajasthan. The company reported 3 wells online and 5 drilled under its capital expenditure programme, while management said its pipeline includes exploration drilling, enhanced oil recovery and infill development.
Operating margin remained well above the Energy peer median
The 32.47% consolidated operating margin was 21.95 percentage points above the 10.52% median for the 8 Energy peers that had reported. Management said it was working on commodity-consumption efficiency through injection-pattern optimisation and had onboarded Surface O&M and Chemicals partners in Rajasthan for further cost synergies. The presentation also flags exploration costs written off for 4 OALP blocks and exceptional items from demerger expenses and a Cambay impairment provision.
Results were filed after market close
The company filed these consolidated results at 15:50 IST after market close, so there is no post-results market reaction to assess yet. Management said Vedanta Oil and Gas aims to expand domestic production, and the company reported a gas discovery in the Kaam BCP-1ST well that will undergo technical and commercial evaluation.
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 | ₹2,507 cr |
| Other income | ₹-290 cr |
| Expenses | ₹1,693 cr |
| Operating profit | ₹814 cr |
| Operating margin (%) | 32.47% |
| Interest | ₹110 cr |
| Depreciation | ₹741 cr |
| Profit before tax | ₹-327 cr |
| Tax | ₹-175 cr |
| Net profit | ₹945 cr |
| EPS (₹) | ₹2.42 |
Operating margin of 32.47% compares with a Energy sector median of 10.52% across 8 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
- Average gross operated production was 77.7 kboepd in Q1 FY27.
- Rajasthan recorded average daily gross operated production of 63.1 kboepd during the quarter.
Guidance & outlook
- Vedanta Oil and Gas aims to significantly expand domestic production toward India’s energy security and economic growth.
Expansion
- The company has a pipeline of exploration drilling, enhanced oil recovery and infill development campaigns to enhance production and resources.
- The company reported three wells online and five drilled under its capital expenditure programme.
New initiatives
- The company is optimizing commodity consumption by focusing on injection patterns.
- The company onboarded end-to-end Surface O&M and Chemicals partners in Rajasthan to generate further cost synergies.
- The company notified a gas discovery in the Kaam BCP-1ST well and will conduct technical and commercial evaluations.
Problems & risks
- Damages to Qatar’s gas processing facilities are expected to affect global gas trade balances for the foreseeable future.
- Revenue declined 3% quarter on quarter because production was lower by 5%.
- The company recorded exploration costs written off toward four OALP blocks in Q1 FY27.
- Q1 FY27 exceptional items included demerger expenses and a provision for Cambay impairment.
What to watch
- Whether average gross operated production moves from 77.7 kboepd
- Whether operating margin remains near 32.47% and above the 10.52% Energy peer median
- The next-quarter effect of the -Rs 175 cr tax line and -Rs 290 cr other income