Anil Agarwal-owned Vedanta Ltd. has delivered exceptional Q1 FY27 results with consolidated net profit attributable to owners surging 152% year-on-year to ₹5,294 crore compared to ₹2,102 crore in Q1 FY26, as reported by Business Standard. The company's consolidated revenue from continuing operations rose 51% year-on-year to ₹23,456 crore from the previous year. This strong performance was driven by robust volume growth across all business segments, with EBITDA increasing by 98% YoY to ₹8,469 crore while EBITDA margin expanded 985 basis points YoY to 57%. The company's profit before tax stood at ₹7,189 crore, up by 145% from ₹2,933 crore in Q1 FY26. As per Business Standard, the revenue growth was driven by higher LME prices, premiums, and forex gains. The company also completed a massive $1.75 billion debt refinancing on June 26, 2026, replacing high-interest bonds with cheaper paper in the 7% to 7.75% coupon range. As of June 30, 2026, gross debt was ₹28,291 crore while net debt was ₹8,299 crore.
The board has approved the demerger of its surplus real estate business into a separate listed entity on a going concern basis, according to the company's exchange filing. The real estate business is involved in development, construction, reconstruction, renovation, redevelopment, improvement, operations and other activities, including residential, commercial, retail, industrial, hospitality and infrastructure-related developments. As per Business Standard, the board has approved the demerger of the real estate business into Vedanta Property Platforms Ltd (VPPL), a new pure-play real estate company, subject to statutory and regulatory approvals. The transaction will be executed through a scheme of arrangement between Vedanta and VPPL, with the parent company planning to apply for no-objection certificates from both BSE and NSE in the coming period. Existing shareholders of Vedanta Ltd. will be eligible to receive one share of the demerged real estate business for every 20 shares of the parent company they own, with the record date for the demerger exercise yet to be disclosed. As per The Economic Times, the surplus real estate portfolio to be demerged comprises 2,200 acres of industrial land and around 55,000 sq ft of residential and commercial properties across India, with the assets spread across Maharashtra, Goa, Tamil Nadu, Gujarat and Karnataka. The demerged real estate undertaking had turnover, including other operating income, of ₹1.26 crore for FY26, representing 0.001% of Vedanta's standalone turnover as on March 31, 2026.
The demerger will create an independent global scale company focusing on the real estate business and take advantage of the growth potential specific to the sector. As reported by Business Standard, this move aims to unlock value from surplus land and built-up assets across India, with the latest filing emphasizing that the demerger aims to improve management focus and value realisation in real estate. The platform will facilitate leasing operations, township development, industrial development and comprehensive infrastructure services, while also undertaking development and operations of special economic zones, industrial estates and a wide range of infrastructure facilities. The vertical split gives real estate-focused investors direct exposure to a premium 2,200-acre land bank, while simultaneously, debt reductions and AA+ credit rating upgrades will structurally lower Vedanta's cost of capital, strengthening long-term valuation multiples. The decision follows Vedanta's landmark five-way restructuring in June 2026, which culminated in the separate listing of its oil and gas, power, aluminium, and iron ore entities, positioning the company for focused management and improved transparency. Anil Agarwal, chairman of Vedanta Group, stated that this is yet another exciting announcement from Vedanta, after the recent success of the five-way demerger creating "pure-play" entities across oil and gas, aluminium, power, and steel, planning to demerge the surplus real estate assets into an independent "pure-play company" to unlock significant value for the stakeholders.
According to Business Standard, Arun Misra, executive director of Vedanta, highlighted strong operational performance across all business segments. Zinc India registered its highest-ever first-quarter mined metal production, while FACOR delivered its highest-ever quarterly ore production and EBITDA. Copper India recorded its highest first-quarter sales in eight years. Zinc International continued to build momentum at Gamsberg, with Phase-1 output rising sequentially and Phase-2 on track to commence this quarter. The consistent operational execution across the portfolio reflects the strength of the underlying asset base and the company's continued focus on volume growth, cost efficiency and value creation. Vedanta houses the Group's base metals portfolio, including Zinc India, Zinc International, copper and other emerging businesses such as nickel, with Hindustan Zinc being among the largest producers of zinc, lead and silver in India.
Under the terms of the vertical split, Vedanta shareholders will receive one fully paid-up equity share of VPPL for every 20 fully paid-up equity shares held in the parent firm, with no cash component involved. The newly formed entity, VPPL, is slated for listing on both major stock exchanges - NSE and BSE. According to the exchange filing, Vedanta's real estate business had a turnover of ₹1.26 crore or 0.001% of the total standalone turnover of Vedanta as on March 31, 2026. The demerger is part of Vedanta's broader strategy to streamline its approach towards real estate and enable focused management, improved transparency, and more productive deployment of real estate assets. The move, which currently represents a negligible share of standalone turnover, aims to unlock value from surplus and non-core properties through focused management, improved transparency and more productive deployment. NSE and BSE approval of the draft Scheme of Arrangement is expected in August 2026. The stock rose 1.17% to end at ₹267.60 on the BSE following the announcement, with shares closing 1.17% higher at ₹267.6 compared to a 0.35% rise in the benchmark Sensex on Wednesday. The company has a market capitalisation of more than ₹1.04 lakh crore.
