Vedanta Aluminium Metal Limited delivered record financial and operating performance during its first quarter as an independent publicly listed company following its demerger.
Quarterly EBITDA reached an all-time high of INR 10,499 crore, increasing 134% from the prior-year period and 24% sequentially.
The company’s EBITDA margin expanded to a record 50%, meaning approximately half of quarterly revenue was converted into earnings before interest, taxes, depreciation, and amortization.
Revenue increased 45% year over year and 13% from the preceding quarter to a record INR 21,105 crore.
Vedanta Aluminium attributed the increase to higher production volumes and improved realizations.
The company did not disclose its average realized aluminum price, production costs, energy expenses, or the individual contributions from volume and pricing.
Profit after tax surged 205% year over year to INR 6,597 crore.
Profit also increased 33% sequentially, outpacing the quarter-over-quarter growth rates for both revenue and EBITDA.
Based on the reported figures, Vedanta Aluminium generated a net profit margin of approximately 31.3%.
The substantial difference between revenue and profit growth indicates that stronger operating leverage, realizations, production volumes, and asset utilization supported the earnings improvement.
Vedanta Aluminium also achieved record production during the quarter.
Aluminum production reached 632 kilotonnes, while production of value-added products increased to an all-time high of 389 kilotonnes.
Value-added products represented approximately 62% of total aluminum output.
These products can include specialized aluminum offerings designed for customers in industries such as transportation, infrastructure, packaging, energy, and advanced manufacturing.
A greater concentration of value-added products can support improved realizations and differentiate Vedanta Aluminium from producers that rely more heavily on standard commodity-grade metal.
Upstream alumina production increased 41% year over year to 826 kilotonnes.
The company attributed the increase to expanded refining capacity and improved asset utilization.
Higher internal alumina production can strengthen raw-material security and support the company’s integrated operating model.
Vedanta Aluminium said its focus on resource security, integrated operations, and value-added products continues to improve its competitive position.
The company serves customers across more than 60 countries through its aluminum and alumina operations.
Balance-sheet metrics improved alongside the record operating results.
Net debt to EBITDA declined to 0.9 times from 1.3 times during the previous quarter.
The reduction indicates that earnings increased faster than net debt and gives the newly independent company additional capacity to pursue growth projects and manage shareholder distributions.
CRISIL and ICRA both upgraded Vedanta Aluminium’s credit rating to AA+ with a Stable outlook.
The upgrades reflect an improvement in the company’s credit profile following the demerger, earnings growth, and reduction in leverage.
Vedanta Aluminium also approved its first interim dividend of INR 8 per equity share.
The distribution brought the company’s cumulative dividend payout for the quarter to more than INR 3,000 crore.
The payout represented approximately 45% of quarterly profit after tax.
Management described the distribution as an uncommon milestone for a newly listed or recently demerged company.
The combination of a large dividend and improving leverage suggests that Vedanta Aluminium generated enough earnings capacity to return capital while strengthening its balance-sheet metrics.
However, the release did not disclose quarterly operating cash flow, capital expenditures, total net debt, or unrestricted cash.
Those figures would provide a more complete view of the company’s ability to sustain similarly large dividends while funding capacity expansions and other growth initiatives.
Vedanta Aluminium believes global aluminum demand will continue benefiting from spending across the energy transition, infrastructure, transportation, packaging, and advanced manufacturing markets.
Aluminum’s use in electric vehicles, renewable-energy infrastructure, power transmission, construction, and lightweight manufacturing supports the company’s long-term demand outlook.
The first-quarter results give Vedanta Aluminium a strong start as a separately listed business.
Record revenue, production, EBITDA, and profit were accompanied by a 50% EBITDA margin, lower leverage, credit-rating upgrades, and a dividend exceeding INR 3,000 crore.
Maintaining that performance will depend on aluminum prices, energy and raw-material costs, production efficiency, asset utilization, and the company’s ability to continue increasing its value-added product mix.
KEY QUOTES:
“Our first quarter as an independent company reflects disciplined execution, operational resilience and a clear long-term strategy. Our focus on resource security, integrated operations and value-added products continues to strengthen our competitive position and support sustainable growth.”
Rajesh Kumar, Whole-Time Director And Chief Executive Officer Of Vedanta Aluminium
“We begin this new phase with record financial performance, a stronger balance sheet and an improved credit profile. These provide a solid foundation to pursue growth opportunities and meet rising global demand for aluminium across energy transition, infrastructure, transportation, packaging and advanced manufacturing.”
Anup Agarwal, Chief Financial Officer Of Vedanta Aluminium
