Single-Digit PE Stock Reports Highest-Ever Quarterly Revenue and Profit; Announces Interim Dividend of Rs 5

Vedanta’s zinc operations remain central to its earnings profile, with Hindustan Zinc delivering higher mined-metal and silver output while lowering production costs. The diversified metals and mining group has now reported record financial results for the second quarter of FY27, supported by stronger operating performance and a sharp improvement in cash generation.

In Q2FY27, Vedanta Limited (VEDL) acheived highest quarterly revenue, up 57 per cent YoY to Rs 25,812 crore in the quarter, while earnings before interest, Tax, depreciation and amortisation (EBITDA) more than doubled to a record Rs 9,938 crore. Profit after tax (PAT) from continuing operations also was highest as it jumped 151 per cent YoY and 17 per cent QoQ to Rs 6,202 crore. 

The EBITDA margin, excluding the copper business, widened to 60 per cent from 49 per cent a year earlier and 57 per cent in the preceding quarter. Finance costs declined 9 per cent YoY to Rs 696 crore, although they increased 5 per cent QoQ. For the first half of FY27, revenue reached a record Rs 49,268 crore and EBITDA rose 103 per cent YoY to Rs 18,407 crore.

Cash generation was a major feature of the quarter. Free cash flow before capital expenditure rose to Rs 5,803 crore from Rs 4,412 crore in Q1 FY27. This helped reduce net debt by Rs 4,624 crore QoQ to Rs 3,675 crore as of September 30, 2026, while net debt to EBITDA improved to 0.1 times from 0.3 times. The company invested Rs 1,135 crore in growth capital expenditure during the quarter and declared a first interim Dividend of Rs 5 per share.

At Zinc India, mined-metal production increased 5 per cent YoY to 271 kilotonnes, while saleable metal output rose 7 per cent to 264 kilotonnes. Silver production grew 20 per cent to 173 tonnes. Zinc production cost after the underground transition declined 29 per cent YoY to USD 703 per tonne. Vedanta also commissioned Gamsberg Phase II in South Africa, adding 200 kilotonnes per annum of metal-in-concentrate capacity. The project is being stabilised, with the company targeting a progressive ramp-up.

Copper International remained a counterpoint, with sales falling 74 per cent YoY to 6 kilotonnes following disruption caused by the Strait of Hormuz closure. Vedanta said operations have resumed and it is targeting a quarterly run rate of more than 20 kilotonnes by Q3 FY27.

As of 2:20 pm on October 28, 2026, Vedanta shares were trading at Rs 230.50, up 1.99 per cent from the previous close. The stock was close to its 52-week low of Rs 226 and remained about 71 per cent below its 52-week high of Rs 787.60. Over one year, the shares have declined 52.94 per cent, compared with a 9.01 per cent fall in the BSE 500, highlighting the extent of the stock’s underperformance. 

What This Means for Investors

The quarter supports Vedanta’s strategy of using higher zinc volumes, lower production costs and expansion projects to strengthen cash flows. Zinc India’s cost reduction and the commissioning of Gamsberg Phase II improve the platform for future output growth. The sharp fall in net debt also gives the company greater financial flexibility to fund expansion, manage borrowing costs and support shareholder distributions.

The development is potentially supportive for the investment case because profit growth was accompanied by stronger cash conversion rather than only accounting gains. However, earnings remain exposed to metal prices, foreign exchange and execution at expansion projects. Gamsberg’s stabilisation, the recovery in Copper International and delivery of the Saudi Arabia rod plant will be important near-term operating markers. The stock trades at 4.49 times trailing earnings and 3.21 times enterprise value to trailing EBITDA, though commodity-linked earnings and capital requirements remain central considerations.

Disclaimer: The article is for informational purposes only and not investment advice.