Vedanta has released its Q2 FY27 business update following the recent demerger of its operations. Significant trends emerged, indicating robust production and sales growth in aluminium, zinc, steel, and power sectors, while oil and gas output faced a year-on-year decline.
Effective May 1, Vedanta split its four primary business units. Here’s a detailed overview of the Q2 performance across these entities.
Vedanta Q2 Production: Zinc Reaches Record Levels
Vedanta Limited achieved its highest-ever production figures for the second quarter and the first six months of refined metals.
Zinc India’s refined metal output increased by 7% year-on-year to 264,000 tonnes in Q2 FY27, attributed to enhanced capacity from debottlenecking projects at Chanderiya and Dariba, along with the new 160 KTPA roaster at Debari.
Meanwhile, Zinc International’s production reached 53,000 tonnes, marking a 9% rise from the previous quarter, boosted by stabilized operations at the Black Mountain Mining (BMM) facility.
However, year-on-year mined metal production for Zinc International saw a 12% drop to 53,000 tonnes in the second quarter. The company also announced that the Gamsberg Phase 2 project commenced during this quarter, with saleable production anticipated to start in October 2026.
In terms of logistics, Vedanta’s ports division recorded its highest first-half cargo handling figures, with discharge volumes increasing by 32% year-over-year to 4.185 million tonnes.
For the first half of FY27, dispatch volumes rose by 18% year-on-year to 3.391 million tonnes, while Q2 saw a 26% increase to 1.739 million tonnes, attributed to better operational efficiency and cargo flow.
Vedanta Aluminium Q2 Update: Aluminium and Alumina Production Surge
Vedanta Aluminium Metal announced record production levels for aluminium, alumina, and value-added products in Q2 FY27.
The company produced 649,000 tonnes of aluminium, reflecting a 5% increase from 617,000 tonnes in Q2 FY26, and was also up 3% sequentially from 632,000 tonnes in Q1 FY27.
For the first six months of FY27, aluminium production totaled 1.281 million tonnes, a growth of 5% compared to 1.222 million tonnes during the same timeframe last year.
Alumina production surged by 37% year-on-year to a record 895,000 tonnes in Q2 FY27, up from 653,000 tonnes in Q2 FY26, and exceeded the previous quarter’s 826,000 tonnes. The first half of FY27 saw alumina production reach 1.721 million tonnes, a 39% increase from 1.24 million tonnes a year earlier, driven by the ramp-up of its expansion circuit.
Vedanta Power Q2 Update: Sales Increase by 26%
Vedanta Power reported a 26% rise in power sales to 5,593 million units (MU) in Q2 FY27, compared to 4,433 MU in Q2 FY26.
The first half of the fiscal year saw total power sales reach 10,817 million units, representing a 32% year-on-year increase, driven by improved plant performance across its portfolio.
This growth was particularly influenced by a significant rise in generation at Meenakshi Energy, where power sales jumped 111% year-on-year to 1,470 million units in Q2, contributing to a total of 2,820 million units in the first half, which is up 160% year-on-year.
A turnaround at the Jharsuguda Thermal Plant also contributed, with power sales increasing 186% year-on-year to 873 million units in Q2. The plant’s availability improved significantly, rising to 98% from 43% in the same quarter of the previous year.
Vedanta Oil & Gas Q2 Update: Production Declines by 19%
Vedanta Oil and Gas reported a 19% decrease in average daily gross operated production, dropping to 72.2 thousand barrels of oil equivalent per day (kboepd) in Q1 FY27, down from 89.1 kboepd in the same quarter last year.
The company attributed this decline to production optimization initiatives and enhanced recovery projects targeting mature fields, aimed at stabilizing output and ensuring future growth.
In the first half of FY27, average daily gross operated production was 74.9 kboepd, an 18% decline from 91.2 kboepd a year earlier, with total gross oil and gas production for this period at 13.7 million barrels of oil equivalent, down from 16.7 million barrels.
Vedanta Oil & Gas continues to explore near- to medium-term opportunities for increasing production and reserves through various optimization and recovery initiatives.
Vedanta Iron and Steel Q2: Modest Increases in Production
Vedanta Iron and Steel reported a 4% year-on-year increase in saleable steel production, reaching 532,000 tonnes in Q2 FY27, compared to 512,000 tonnes in the same quarter last year.
Hot metal production rose by 3% year-on-year to 552,000 tonnes in Q2 FY27, up from 533,000 tonnes in Q2 FY26.
In the first half of FY27, total saleable production was 1.11 million tonnes, marking a 4% increase from 1.07 million tonnes in the previous year.
Despite a slight decline in pig iron production, TMT bar production increased by 12% year-on-year and ductile iron pipe production saw a remarkable 225% rise.
Saleable iron ore production fell by 13% year-on-year to 1.52 million dry metric tonnes in Q2 FY27.
Overall, Vedanta’s Q2 FY27 operating updates present a mixed performance across its various business sectors, with strong growth in aluminium, zinc, steel, and power operations juxtaposed against a decline in oil production.
