Vedanta Aluminium's net profit fell 6% to Rs 6,187 crore in the July-September quarter, even though it produced a record 649,000 tonnes of aluminium. Revenue rose 4.4%, but its operating margin narrowed and EBITDA slipped 1.8%.
At a glance
- Alumina output rose 37% to a record 895,000 tonnes.
- Net debt fell by Rs 3,090 crore in the quarter, and India Ratings upgraded the company to AA+.
- CLSA kept an Outperform rating, while Motilal Oswal cut its target price but kept a Buy rating.
Background
Vedanta Aluminium runs aluminium smelters and alumina refineries in India, including Bharat Aluminium Company (BALCO). EBITDA, or earnings before interest, tax, depreciation and amortisation, measures operating profit. Alumina, refined from bauxite, is the raw material that smelters turn into aluminium.
What happened
Vedanta Aluminium's net profit fell to Rs 6,187 crore in the September quarter from Rs 6,597 crore a year earlier, CNBC TV18 reported. Revenue rose 4.4% to Rs 22,324 crore, while EBITDA fell 1.8% to Rs 10,113 crore.
The EBITDA margin narrowed to 45.3% from 48.1%, showing pressure on operating profit despite higher sales.
Record production
Aluminium output reached a record 649,000 tonnes, up 5% from a year earlier, and value-added products rose 31% to a record 432,000 tonnes. Alumina production jumped 37% to 895,000 tonnes.
The company started the second zone of its 435,000-tonne expansion at BALCO and secured consent to operate the Sijimali bauxite block, which will help secure raw materials.
Debt and outlook
Net debt fell by Rs 3,090 crore during the quarter, cutting the ratio of net debt to EBITDA to 0.7 times from 0.9 times. India Ratings upgraded the company to AA+ with a stable outlook.
CLSA said results were slightly ahead of expectations on lower costs and kept a target of Rs 525 a share. Motilal Oswal cut its target to Rs 480 from Rs 500 but kept a Buy rating.
Our read
Outlook: neutral. Record Indian output adds supply, but Vedanta Aluminium's volumes are small relative to the global market.
What to watch
- Progress on the BALCO expansion and the Sijimali bauxite block.
- Aluminium prices, which drive Vedanta Aluminium's margins.
- Plans for a proposed 3-million-tonne smelter targeted for the end of FY28.
For information only, not investment advice.
Aluminium price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-28: Vedanta Aluminium reports July-September quarter results.
Supply Drivers
Vedanta Aluminium produced a record 649,000 tonnes of aluminium and 895,000 tonnes of alumina.
What could lift prices
- Narrower margins show rising costs for aluminium producers.
- Strong output reflects steady demand for value-added aluminium products.
What could weigh on prices
- Vedanta Aluminium is producing record amounts of aluminium.
- More capacity at BALCO will add further supply.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | Medium | A major domestic aluminium producer posted record output and lower debt. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Aluminium Smelting | Positive | Record output and lower debt strengthen the producer's position. |
Who gains, who loses
- Vedanta Aluminium's lenders: Net debt fell by Rs 3,090 crore and its credit rating was upgraded.
- Vedanta Aluminium shareholders: Net profit fell 6% despite record production.
Other ways this could play out
- If aluminium prices hold near current levels, cost savings could lift margins again.
- If costs keep rising, margins could narrow further despite higher output.
Price risks
- Lower aluminium prices would cut earnings quickly.
- Delays at BALCO or Sijimali could slow growth.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
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