Vedanta Iron & Steel reported a return to profitability in the first quarter, aided by the absence of the large one-time loss that had weighed on earnings in the preceding quarter. However, the company reported lower revenue, operating profit and margins. The company posted a net profit of Rs 122 crore for the quarter, compared with a loss of Rs 1,913 crore in the March quarter.
The sharp turnaround was primarily due to the absence of a one-time loss of Rs 1,512 crore that had impacted the fourth quarter of FY26.
Revenue declined 5% sequentially to Rs 3,612 crore from Rs 3,803 crore in the previous quarter, reflecting softer business performance during the period. Operating performance also weakened, with Ebitda falling 7% to Rs 458 crore from Rs 493 crore. Ebitda margin narrowed to 12.7% from 13%, indicating some pressure on profitability.
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Despite the softer operating numbers, the company returned to the black as the previous quarter’s exceptional loss did not recur.
Vedanta Iron & Steel (Q1, Consolidated QoQ)
- Net profit at Rs 122 crore versus loss of Rs 1,913 crore.
- Revenue down 5% to Rs 3,612 crore versus Rs 3,803 crore.
- Ebitda down 7% to Rs 458 crore versus Rs 493 crore (YoY).
- Margin at 12.7% versus 13% (YoY).
- One-time loss of Rs 1,512 crore in Q4 FY26.
This is the first earnings after the demerger of Vedanta. Vedanta group’s four demerged businesses made their stock market debut on the bourses last month. Besides Vedanta Ltd, which is already listed, the shares of four newly created entities — Vedanta Aluminium Metal (VAML), Vedanta Oil & Gas (VOGL), Vedanta Power and Vedanta Iron & Steel (VISL), got listed on NSE and BSE.
Vedanta shareholders had received one equity share in each of the four demerged cos for every one share held in the Anil Agarwal-led group.
The demerger of the metals-to-mining conglomerate was approved by the National Company Law Tribunal in December last year. Under the 1:1 approved demerger scheme, shareholders will receive one share of each demerged company for every one share held in Vedanta Ltd.