Vedanta Aluminium Metal Ltd delivered exceptional financial performance in the second quarter, with consolidated net profit rising to ₹6,187 crore for the quarter ending September 30, representing a remarkable 105% increase from ₹2,373 crore in the corresponding quarter of the previous year. According to The Economic Times, this significant profit surge was primarily driven by elevated aluminium prices due to Middle East supply disruptions and strong global demand. The company's revenue from operations increased 41% to ₹22,066 crore during the same period, demonstrating robust operational performance across all business segments.
The company achieved a significant milestone in operational performance with aluminium production reaching a record 649,000 metric tons, representing a 5% year-on-year increase and 3% quarter-on-quarter growth. As reported by Motilal Oswal, aluminium production stood at 649kt, up 5% YoY and 3% QoQ, supported by higher volumes and improved marketing mix. Production at its Jharsuguda facility reached 470,000 tonnes, while BALCO's output increased 19% YoY to 178,000 tonnes. The company's value-added aluminium production rose 31% to a record 432,000 tonnes, reflecting its efforts to increase the share of higher-value products. Alumina production at its Lanjigarh refinery also reached a quarterly record of 895,000 tonnes, registering 37% YoY growth and 8% QoQ increase.
The company's EBITDA margin expanded to 46% from 36% in the year-ago quarter, indicating enhanced operational efficiency and cost management. According to The Economic Times, EBITDA increased 83% to ₹10,192 crore from ₹5,582 crore, marking the second consecutive quarter in which operating profit exceeded ₹10,000 crore. The company benefited from elevated aluminium prices that rose 23% year-on-year in the September quarter, with the benchmark London Metal Exchange aluminium price averaging $3,226 per tonne during the quarter, compared with $2,618 a year earlier. The company's aluminium production cost declined 6% to $1,722 per tonne from $1,826 per tonne in the corresponding period last year, demonstrating effective cost management despite sequential increases. Blended NSR for the quarter stood at USD3,600/t (+22% YoY and -2% QoQ), with an 11% premium over LME prices of USD3,220/t.
Total income stood at ₹22,066 crore compared with ₹15,670 crore in the year-ago period, representing a significant increase in the company's overall financial performance. As reported by The Economic Times, profit before exceptional items rose 117% YoY to ₹6,550 crore, while the company recorded an exceptional charge of ₹363 crore during the September quarter. The company demonstrated strong balance sheet management with consolidated net debt declining by ₹3,090 crore to ₹26,442 crore as of September 30, from ₹29,532 crore at the end of June. Cash and cash equivalents stood at ₹6,318 crore, while consolidated gross debt was ₹32,800 crore. Finance costs declined 4% YoY to ₹911 crore from ₹949 crore, supported by lower average borrowings and disciplined cash generation.
ICICI Securities has recommended a buy rating on Vedanta Aluminium Metal with a target price of ₹490 in its research report dated October 29, 2026, maintaining its buy rating based on 6.5x FY28E EV/EBITDA. According to ICICI Securities's report, VAML reported in-line EBITDA of ~₹102bn, up 83% YoY/down 3% QoQ and EBITDA/t of USD 1,630/t (up 59% YoY/down 5% QoQ) driven by higher volumes, improved realisations and an increasing share of value-added products. Emkay Global Financial has also recommended a buy rating on Vedanta Aluminium Metal with a target price of ₹550 in its research report dated October 29, 2026, maintaining its buy rating based on 6.0x Sep-27E EV/EBITDA. Motilal Oswal has recommended a buy rating on Vedanta Aluminium Metal with a target price of ₹480 in its research report dated October 28, 2026.
