Vedanta Q2 profit plunges 38% to Rs 3,479 crore amid write-offs, settlements

New Delhi: Anil Agarwal-led Vedanta Ltd on Friday reported a 37.9 per cent decline in consolidated profit after tax to Rs 3,479 crore for the September quarter due to an exceptional item.

The company had posted consolidated profit after tax (PAT) of Rs 5,603 crore in the year-ago period.

However, the company had posted an increase in total income to Rs 40,464 crore over Rs 38,934 crore in the corresponding quarter of the previous fiscal year, Vedanta said in a regulatory filing.

The PAT was impacted due to exceptional item outgo of Rs 2,067 crore during the second quarter.

Vedanta CFO Ajay Goel told PTI that the exceptional item is primarily due to a Rs 1,407 crore write-off from an adverse Supreme Court ruling on a power benefit claim and a Rs 660 crore settlement payment to SEPCO for an arbitration dispute at the Talwandi Sabo power unit. While Talwandi Sabo Power Ltd (TSPL) has filed a review petition before the Supreme Court, the receivable of Rs 1,407 crore is not recoverable and has been written off in the second quarter.

The company's consolidated revenue during the second quarter rose 6 per cent to Rs 39,218 crore due to higher LME, premia and forex gain.

Vedanta Executive Director said that the company's H1 FY26 performance reflects its resilience.

The company delivered 8 per cent year-on-year EBITDA growth in a period marked by uncertainties and lower prices of key commodities.

"This performance is on the back of our disciplined approach, focusing on volume growth and cost reduction across businesses," he said.

The company delivered strong progress on new projects, including commissioning of 1.3 GW of new power plant capacities, first metal production from new BALCO smelter, first alumina from 1.5 MTPA train 2 at Lanjigarh refinery and start of 160 KTPA Roaster at Debari, he said.

"Supported by this increased production capacity and the recovery in commodity prices, Vedanta is well positioned to deliver its best performance in FY26, with full year EBITDA surpassing the historic best EBITDA of USD 6 bn delivered in FY22," Vedanta Executive Director Arun Misra said.

As on September 30, 2025, Vedanta's gross debt stood at Rs 83,544 crore and net debt at Rs 62,063 crore.

Vedanta Group is a global leader in critical minerals, energy transition metals, power, and technology, with operations spanning India, South Africa, Namibia, Liberia, the UAE, Saudi Arabia, Korea, Taiwan, and Japan.