Vedanta Group recently shared its business performance for Q2 FY27 following the demerger of its primary operations on May 1. The report highlighted robust growth in aluminium, zinc, steel, and power sectors, contrasted by a decline in oil and gas production on a year-over-year basis.
Zinc Production Reaches New Heights
Vedanta Limited announced its highest refined metal production levels for both the second quarter and the first half of the fiscal year. Zinc India’s refined metal output rose by 7% year-over-year, reaching 264,000 tonnes in Q2 FY27, a surge attributed to enhanced capacity from debottlenecking projects at the Chanderiya and Dariba sites, alongside the new 160 KTPA roaster at Debari.
However, Zinc International’s mined metal production saw a 12% year-on-year decrease, totaling 53,000 tonnes in the same quarter. The company noted that Phase 2 of the Gamsberg project was commissioned in Q2 FY27, with production expected to commence by October 2026.
Vedanta’s port operations also achieved a record cargo handling performance, with discharge volumes climbing 32% year-over-year to 4.185 million tonnes. In terms of dispatch volumes, a year-on-year rise of 26% was reported, totaling 1.739 million tonnes in Q2 FY27, driven by improved operational efficiency.
Aluminium and Alumina Production Increases
In the aluminium sector, Vedanta reported a 5% year-on-year increase in aluminium production, reaching 649,000 tonnes in Q2 FY27. This was a slight improvement from 632,000 tonnes in the previous quarter. The first half of FY27 saw a total production of 1.281 million tonnes, also up by 5% compared to last year’s figures.
Alumina production rocketed by 37% year-on-year to a record 895,000 tonnes in Q2 FY27, significantly higher than the previous quarter’s 826,000 tonnes. The first half production for alumina stood at 1.721 million tonnes, reflecting a 39% increase from last year.
Power Sales Surge
Vedanta Power experienced a remarkable 26% growth in sales, reaching 5,593 million units in Q2 FY27, up from 4,433 million units in Q2 FY26. Total power sales for the first half of the fiscal year amounted to 10,817 million units, marking a 32% annual increase. Key contributors to this growth included a significant rise in generation at Meenakshi Energy and improvements at the Jharsuguda Thermal Plant, where power sales surged 186% year-on-year.
Oil and Gas Production Decline
Conversely, Vedanta Oil and Gas reported a 19% year-on-year drop in average daily gross operated production, averaging 72.2 thousand barrels of oil equivalent per day in Q1 FY27. The first half production was also lower, at 74.9 kboepd, down 18% from 91.2 kboepd in the same period last year. The company continues to focus on production optimization to mitigate this decline.
Steel Production Shows Modest Increases
Vedanta Iron and Steel reported a 4% year-on-year increase in saleable steel production, reaching 532,000 tonnes in Q2 FY27. The total saleable production for the first half stood at 1.11 million tonnes, showing a 4% rise from the previous year. However, production levels were impacted by scheduled maintenance.
Overall, the Q2 FY27 performance of Vedanta Group illustrated a mixed bag of results, with strong growth in metals and power sectors, while oil and gas operations faced challenges.
