Vedanta Aluminium Metal Limited delivered exceptional first quarter results for FY27, with consolidated net profit surging more than threefold year-on-year to ₹5,629 crore. The company reported revenue from operations jumping 46% YoY to ₹21,393 crore during the April-June quarter, while total income rose over 46% YoY to ₹21,702 crore. According to the latest financial disclosure, total expenses increased over 7.5% YoY to ₹12,870 crore during the quarter. The company's net profit margin more than doubled to 31% in Q1 FY27 from 15% in Q1 FY26, while operating profit margin improved to 45% from 26% in the corresponding quarter last year. Net worth surged more than 86% YoY to ₹30,441 crore at the end of the first quarter, demonstrating strong balance sheet growth.
Vedanta Aluminium Metal Limited announced that its board will consider and approve the first interim dividend for FY27 on Thursday, July 30, 2026, alongside the announcement of June quarter results. According to the company's announcement, the record date for determining shareholder entitlement to any declared dividend has been fixed as Wednesday, August 05, 2026. This marks the company's first interim dividend since its recent demerger from Vedanta Ltd. Along with its Q1 results, the company announced its first interim dividend of ₹8 per share on a face value of Re 1 for FY27, reflecting the strong financial performance and improved profitability metrics.
Vedanta Aluminium Metal Limited stands as one of the world's largest aluminium producers and India's largest, according to the company's disclosure. The entity produced 2.42 million tonnes of aluminium in FY25, accounting for more than half of the country's total output. The company supplies aluminium products to customers across over 60 countries, demonstrating its significant global market presence in the aluminium sector. The company operates one of the world's largest alumina refineries at Lanjigarh and one of the world's largest aluminium smelters at Jharsuguda, both in Odisha, as well as Bharat Aluminium Company Limited (BALCO) at Korba in Chhattisgarh.
Vedanta Aluminium Metal shares gained nearly 2% on Friday morning to trade at ₹465 apiece following the strong Q1 results announcement. The stock has gained around 6% in one week and 3% in a month, though it remains overall down more than 7% since listing. Global brokerages including Citi, CLSA, Nuvama, and Emkay remain bullish on the shares, projecting up to 20% upside driven by cost discipline, capacity expansions, and captive mine operations. Emkay has a 'Buy' call with a target price of ₹550, implying an upside potential of more than 20% from the current market price. The brokerages view the aluminium entity as the group's most valuable demerged entity and a key driver of future value creation.
According to ICICI Securities, Vedanta Aluminium is well positioned to benefit from a favorable aluminium cycle as the industry undergoes structural transformation. The brokerage expects the company to report EBITDA of ₹38,900 crore in FY28, implying a 24% CAGR over FY26-FY28E, with EBITDA per tonne rising to $1,429, an 11% CAGR. Aluminium volumes are projected to increase to 2.9 million tonnes by FY28, translating into a 9% CAGR over FY26-FY28E. The ramp-up of captive alumina, bauxite and coal mines will reduce input cost volatility and generate incremental cost savings of around $70 per tonne during the period. In June, Vedanta Aluminium had announced plans to double its production capacity to 60 lakh tonnes per annum (LTPA) to cater to rising demand from the infrastructure, automotive and electrification sectors.
