Vedanta Q1 FY27 Results Analysis: Revenue Surges 53.6%, EBITDA Margin Expands 800 bps (VEDL)

Vedanta Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 24,205.00 Cr (+53.60% YoY) and PAT growth of +151.90% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Vedanta's Q1 FY27 shows strong growth in continuing operations, with revenue up 53.6% YoY and EBITDA margin expanding 800 bps to 35.1%, led by the Zinc India segment's 62.4% margin. The demerger has structurally improved the balance sheet, halving finance costs, while the CRISIL rating upgrade and MoPNG approval for oil & gas asset transfer add positive catalysts. However, promoter share sale and high encumbrance, along with regulatory observations on related party transactions, warrant monitoring.

Key Investment Insights

Key Positives

• Revenue from continuing operations grew 53.6% YoY to Rs.24,205 Cr
• EBITDA margin expanded 800 bps YoY to 35.1%
• PAT from continuing operations grew 151.9% YoY to Rs.5,294 Cr
• Zinc, Lead & Silver segment achieved EBITDA margin of 62.4%
• Interest Service Coverage Ratio improved to 12.59x from 8.52x in Q4
• CRISIL upgraded long-term rating to AA+/Stable post-quarter

Risk Factors

• Copper segment EBITDA margin remains negligible at 0.1%
• Promoter holding reduced from 40.02% to 38.35% via share sale
• Promoter encumbrance at 54.72% of shares under a US$2.25B facility
• SEBI observations on HZL's related party transactions (approvals and disclosure aspects)
• ED conducted FEMA search at company premises in June; no further communication received