Vedanta’s Q2 FY27 Results Show Record Aluminium Output and Power Sales Surge, but Oil & Gas Operations Falter

What Happened

Vedanta’s demerged units posted a record 649 kt total production in Q2 FY27, driven by a 37% year‑on‑year jump in alumina to 895 kt and a 31% rise in value‑added products to 432 kt. The company secured a Consent to Operate for the Sijimali Bauxite Block and commissioned the second zone of BALCO’s 525 kA smelter potline, actions that lower raw‑material risk and cut unit power use. Vedanta Power’s quarterly sales hit a new high of 5,593 million units, up 26% from a year earlier, thanks to a 111% surge at Meenakshi Energy and strong performance at its Talwandi Sabo plant, which ran at 83% availability against an 80% benchmark. Daily gross operated production fell 19% to 72.2 kboepd, reflecting a 15% natural decline in Rajasthan and an 83% drop at Cambay, with no major reserve replacements or breakthrough discoveries to offset mature‑field depletion.

Reaction

Seema Srivastava of SMC Global Securities highlighted Vedanta Aluminium’s aggressive margin protection against LME price swings and named Hindustan Zinc as the top dividend‑paying defensive pick. She advised investors seeking long‑term capital growth to favour Vedanta Aluminium, while conservative investors should lean on Hindustan Zinc for balance‑sheet strength and free‑cash‑flow conversion. Sugandha Sachdeva of SS WealthStreet called Vedanta Power the best stock to buy, noting the share’s dip from a June 2026 peak near ₹50 but pointing to a technical support level at ₹30 and a key upside hurdle at ₹35, beyond which a move to the ₹48‑50 range could follow. She cited rising electricity demand, better power infrastructure and government focus on the energy ecosystem as supportive factors.

Context

Vedanta’s split into separate mining, metal and power entities lets each business pursue its own growth levers, such as volume expansion in aluminium and integrated power generation. The power‑sector outlook stays upbeat as India’s electricity demand continues to climb, even as mature oil and gas fields face declining output.