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Vedanta Aluminium reported a healthy performance in Q1FY27

ICICIdirect Research 31 Jul 2026 DISCLAIMER

News: Vedanta Aluminium reported a healthy performance in Q1FY27. On the consolidated basis, total operating income for the quarter came in at ₹21,393 crore (up 12% QoQ) with aluminium sales volume of 615 KT (up 2% YoY). Reported EBITDA for the quarter came in at ₹10,299 crore with corresponding EBITDA margins at 48% (up ~450 bps QoQ). EBITDA/tonne for the quarter stood at $1,808/tonne vs ₹1,507/tonne in Q4FY26. Consolidated PAT for the quarter was at ₹6,597 crore, up 33% QoQ. The company declared a 1st interim dividend of ₹8 per share for FY27.

View: The company’s strong performance for the quarter was driven by higher aluminium realisation which has increased by ~$364/tonne to ~$3,562/tonne. In addition, aluminium cost of production (CoP) has declined by ~3% QoQ to ~$1,698/tonne in the quarter, supported by higher captive alumina consumption, lower coal costs, and operational efficiencies.  Consequently, EBITDA/ton improved by ~$300/tonne QoQ to ~$1,808/tonne in the quarter. Going forward, volume ramp-up at the BALCO plant, higher captive alumina integration through the Lanjigarh refinery and the gradual ramp-up of bauxite and coal mines are expected to further strengthen operational performance. We remain positive view on the stock, supported by its market leadership in the domestic aluminium market, expansion-led volume growth offerings, improvement in raw material security, and capital efficient business model with return ratios above 50%.

Impact: Positive

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