Vedanta Iron And Steel Returns to Profit in Q1 FY27 as Revenue Climbs 18% to ₹3,662 Crore

Vedanta Iron And Steel Limited (VISL) has reported a strong turnaround in its financial performance for the first quarter of FY2026-27, returning to profitability on the back of higher production volumes, improved operating efficiencies and reduced finance costs. The company posted a consolidated net profit of ₹121 crore for the quarter ended June 30, compared with a net loss of ₹145 crore during the corresponding period last year.

Revenue from core operations increased 18% year-on-year to ₹3,662 crore, reflecting stronger steel and iron ore sales along with improved product realisations. EBITDA rose 54% to ₹515 crore, while the EBITDA margin improved to 14%, highlighting better operational performance across the company’s steel and mining businesses.

One of the key contributors to the improved earnings was a sharp decline in finance costs, which fell 55% year-on-year to ₹207 crore following debt reduction before and after the company’s demerger. The company’s Net Debt-to-EBITDA ratio also improved to 1.3 times, supported by cash and cash equivalents of ₹1,018 crore at the end of the quarter.

Operationally, VISL continued to strengthen its manufacturing performance. Steel saleable production increased 4% year-on-year to 582 KT, while iron ore production reached 2.6 million dry metric tonnes. The Goa pig iron plant achieved its highest-ever quarterly production of 238 KT, and overall pig iron production touched a record 291 KT during the quarter. The steel business also reported a 60% improvement in EBITDA per tonne, demonstrating stronger profitability despite changing market conditions.

Looking ahead, the company remains focused on executing expansion projects, improving cost competitiveness and strengthening long-term value creation. Management said strategic investments, operational discipline and continued emphasis on value-added products are expected to support future growth. With stronger profitability, healthy liquidity and an improving balance sheet, Vedanta Iron And Steel enters the remainder of FY2026-27 with a more resilient financial position and an expanding operational base.