Vedanta Q1 FY2027 Earnings Watch: What the Group's Business Updates Signal Ahead of June Quarter Results

Vedanta Group's recently demerged companies have released their business updates for the April-June quarter, giving investors the first indication of operating performance ahead of the Q1 FY2027 results.

The updates come less than a month after Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas and Vedanta Iron & Steel were listed on the stock exchanges following the group's demerger. While the businesses reported varied operating trends during the quarter, the numbers provide an early read on production before the companies announce their June quarter financial results.

Key Q1 FY2027 Business Highlights

Vedanta Oil & Gas:

Vedanta Oil & Gas reported a 17% year-on-year decline in gross oil and gas production to 7.1 million barrels of oil equivalent (boe) during the April-June quarter, compared with 8.5 million boe a year ago. Production also slipped from 7.3 million boe reported in the March quarter.

The company's total working interest production stood at 4.7 million boe, down 16% from the corresponding period last year.

Its largest producing asset in Rajasthan recorded a 15% year-on-year decline in average daily gross operated production to 63.1 thousand barrels of oil equivalent per day (kboepd).

Vedanta Aluminium:

Vedanta Aluminium reported its highest-ever quarterly aluminium production at 632,000 tonnes, up 5% year-on-year and 3% higher than the previous quarter.

Power sales at BALCO increased 21% from a year ago.

In its business update, the company said progress on the BALCO expansion remains steady, with a measured approach towards operational stability and efficiency as capacity is gradually ramped up. It expects the expansion to achieve full capacity utilisation by the fourth quarter of FY2027.

The company also said the mining lease for the Kuraloi (A) North Coal Block has been executed and mine opening permission was received during June, strengthening long-term raw material availability.

Vedanta Iron & Steel:

Vedanta Iron & Steel reported saleable iron ore production of 2.6 million dry metric tonnes (DMT), up 4% from the year-ago period.

Saleable steel production also increased 4% year-on-year to 582,000 tonnes.

Production varied across regions. Karnataka recorded a decline in saleable iron ore production, while Goa and Odisha posted strong growth during the quarter.

Vedanta Power:

Vedanta Power reported power sales of 5,225 million units during the first quarter of FY2027, an increase of 38% from 3,784 million units in the corresponding quarter last year.

Meenakshi Energy remained the biggest contributor to growth, with power sales rising sharply on a year-on-year basis.

Sequentially, however, power sales declined from the March quarter. The company attributed the decline to lower plant availability at the Sakti Thermal Plant following a boiler incident in April.

Vedanta Ltd:

Vedanta Ltd, which continues to house businesses including Hindustan Zinc, Zinc International, copper, ferro alloys and port operations, reported mixed operating performance during the quarter.

At Hindustan Zinc, mined metal production increased 1% year-on-year to 268 kilotonnes (kt), while saleable metal production rose 4% to 260 kt.

Zinc International reported a 14% decline in mined metal production to 48 kt.

Elsewhere, ferro alloys ore production increased 41%, copper sales rose 3%, while global copper rod sales declined 51%. The company's Vizag General Cargo Berth also reported higher discharge and dispatch volumes during the quarter.

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What to watch in the June quarter results

The business updates offer an early indication of production trends, but the June quarter earnings will provide a clearer picture of financial performance across the newly demerged companies.

Investors will watch for management commentary on commodity prices, operating margins, demand, capital expenditure, expansion projects and production guidance. Updates on the BALCO expansion, production recovery at Vedanta Oil & Gas and the outlook across the power and iron & steel businesses are also expected to remain in focus when the companies announce their Q1 FY2027 results.