Vedanta's board has approved the issue of 3.5 lakh non-convertible debentures to raise ₹3,500 crore from investors on a private placement basis. As per the company's regulatory filing, the Committee of Directors approved the issue at its meeting on September 18, 2026, with each NCD carrying a face value of ₹1 lakh. The securities will be unsecured, rated, listed and redeemable and will be offered through private placement to institutional and eligible investors, with listing planned on BSE Ltd.. This represents a significant increase from the previously announced proposal and is larger than the ₹3,000 crore NCD issuance approved by Vedanta in February 2026. The debt issuance is part of Vedanta's routine refinancing programme, with the company targeting borrowing costs below 8.5% per annum.
Vedanta reported robust financial results for the June quarter, with consolidated net profit rising 152% to ₹5,294 crore compared with the year-ago period. As reported by CNBC TV18, revenue from operations during the first quarter of FY27 rose by 53.6% to ₹24,205 crore from ₹15,754 crore a year ago. The company's EBITDA margin expanded sharply to 35.1% from 30.7% in the previous quarter. Executive Director Arun Misra stated that the company delivered a strong start to FY27 with robust performance across all business segments of demerged Vedanta, reflecting the strength of its underlying asset base. Additionally, the company's net debt declined by ₹2,223 crore during the quarter, demonstrating improved financial health.
Several Vedanta businesses delivered exceptional operational performance during the quarter. According to CNBC TV18, Zinc India posted its highest-ever first-quarter mined metal production at 268 kt, while refined metal production increased 4% year-on-year to 260 kt. The business also reported its lowest zinc cost of production since transitioning underground, with costs falling 16% year-on-year to ₹851 per tonne. Elsewhere, FACOR recorded its highest-ever ore production of 153 kt, up 41% year-on-year, alongside a 4% increase in ferrochrome production. However, Vedanta also faced some operational challenges, with Zinc International's mined metal production declining 14% year-on-year as the Deep mine at Black Mountain nears the end of its operational life, while copper rod sales at the Fujairah facility were impacted by disruptions arising from the closure of the Strait of Hormuz.
Vedanta's latest NCD issue comes after ICRA and CRISIL upgraded the company's credit ratings to AA+/Stable in July 2026, from AA/Stable previously, according to the company's regulatory filing. The proposed NCDs will be listed on BSE Ltd., providing a route for secondary-market trading of the securities. Following the board approval of the ₹3,500 crore fundraising initiative, Vedanta shares have responded positively, rising 1.2% in recent trading. The company's ports business also reported record discharge volumes of 2,358 kt, up 40% from a year ago, while the Copper India business registered its highest first-quarter sales in eight years. The company has also been actively expanding its operations, with Vedanta Oil and Gas Ltd partnering with Beicip-Franlab India Pvt Ltd to accelerate exploration in the Northeast, covering nine Open Acreage Licensing Programme blocks. Additionally, Vedanta deployed India's first portable rig for gold and critical mineral exploration at two flagship projects in Chhattisgarh, capable of drilling up to 1,000 metres compared to typical 300-400 metre range.
