Vedanta Q1 FY27: continuing-ops PAT jumps 152% YoY to ₹5,294 Cr as Zinc-Silver margins hit 30%

Vedanta's consolidated net profit from continuing operations rose 152% YoY to ₹5,294 Cr in Q1 FY27 (quarter ended 30 June 2026), against a restated ₹2,102 Cr a year earlier, and beat Street's modest bar — Uniresearch had modelled PAT of ~₹3,899 Cr on revenue of ~₹40,003 Cr. Revenue from continuing operations of ₹24,205 Cr (+54% YoY, -2% QoQ) undershot that estimate, but the comparison is distorted by scope: the Aluminium, Oil & Gas, Iron Ore and Power businesses were demerged into separate listed entities effective 1 May 2026, so only one month (April) of those operations sits in this quarter's discontinued-operations line, versus what the Street estimate likely assumed was a fuller overlap. Including that one month, total company net profit was ₹7,918 Cr versus ₹9,352 Cr last quarter and ₹4,457 Cr a year ago — again not like-for-like given the shrunk base.

On a continuing-operations basis, operating margin expanded sharply to 30% from a restated 20% a year ago and 26% last quarter, with net margin at 22% versus 13% YoY — squarely within the 30-32% EBITDA-margin band flagged in our pre-result preview. The entire improvement traces to the Zinc, Lead & Silver India segment, where EBITDA more than doubled to ₹8,096 Cr from ₹3,815 Cr, powered by Silver-India segment revenue jumping to ₹3,839 Cr from ₹1,426 Cr — consistent with the record mined-metal output flagged pre-result. Copper contributed almost nothing (₹11 Cr EBITDA versus a ₹26 Cr loss last year) and Zinc-International EBITDA actually fell to ₹250 Cr from ₹422 Cr, making this a single-segment, price/volume-driven print rather than a broad-based improvement.

The stock went into the print at ₹267, down 3.1% over the past month of trading.

For context: PAT has now risen for 2 consecutive quarters.

Management gave no formal FY27 guidance or outlook alongside these results — none is on record from this or prior calls — leaving the 30-32% margin band from our preview as the only external marker, and the quarter met it. The dominant management news alongside the print was the board's approval to demerge Vedanta's Real Estate business, which the company itself used to frame the announcement (performance characterised as neutral in its own release); the board also re-appointed directors at the same meeting. Balance-sheet metrics reflect the completed four-segment demerger: net worth fell to ₹19,867 Cr from ₹68,577 Cr as assets/equity transferred to the resulting companies, pushing Debt-Equity to 1.42x from 1.19x — a structural shift from the demerger accounting, not a leverage deterioration signal on its own.