Vedanta’s Oil & Gas and Power Units Turn Profit, Lifting Shares Over 13%

Vedanta’s Oil & Gas and Power divisions posted profits in the September quarter, sending their share prices soaring more than 13% on Friday. The Oil & Gas unit closed at ₹31.64, up 13.5%, while Power finished at ₹32.69, up 13.4%. Iron & Steel rose 3.7% to ₹26.25, but the newly demerged aluminium arm slipped 2% to ₹342.25 and the group’s overall stock fell 1.1% to ₹232.15. Power recorded a net profit of 83 crore rupees, reversing a loss of 1,688 crore rupees a year earlier. Its core EBITDA more than doubled to 421 crore rupees and earnings per share turned positive at 0.21 rupee. Oil & Gas posted a net profit of 746 crore rupees against a loss of 92 crore rupees in the same quarter last year. Operating income rose 3% to 2,628 crore rupees, helped by a 26% rise in sales volume and better international price realisations. Iron & Steel’s revenue fell 2% year‑on‑year to 2,788 crore rupees, yet operating EBITDA jumped 56% to 83 crore rupees and margins improved by 112 basis points. The segment posted a net loss of 324 crore rupees, narrower than the 477‑crore loss a year ago. Aluminium reported consolidated revenue of 22,300 crore rupees, driven by a record 649‑kilotonne output. EBITDA surged 82% to 10,100 crore rupees and net profit doubled to 5,650 crore rupees, with cash flow earmarked for debt reduction rather than a dividend. The parent company posted revenue of 25,812 crore rupees, up 57%, and EBITDA of 9,938 crore rupees, up 106%. Net profit reached 6,202 crore rupees, of which 3,650 crore rupees were attributable to shareholders, and the board approved its first interim dividend of five rupees per share.

Context

These results show that Vedanta’s core mining and energy businesses are recovering from previous losses, while the aluminium segment focuses on debt pay‑down. The mixed share‑price reaction reflects investors weighing the strong profit turnarounds against weaker performance in some units.