Vedanta Q1 FY27: First Results After Demerger, Profit Up 152%

Vedanta Limited reported its first post-demerger results, consolidated Q1 FY27 for the quarter ended 30 June 2026, on 30 July 2026. Aluminium, oil and gas, iron ore and merchant power moved into separate companies from 1 May 2026, listing on 15 June, leaving Vedanta primarily zinc, silver, copper and ferro alloys. Q1 FY27 numbers (continuing operations): Revenue: Rs 24,205 crore, up 53.6% YoY from Rs 15,754 crore EBITDA: Rs 8,501 crore, up 98.8% YoY; margin 35.1% vs 27.1% PAT from continuing operations: Rs 5,294 crore, up 151.9% YoY Owners' net profit: Rs 5,473 crore, up 71.8%, including one April month of demerged units; non-comparable per the company Record production at Zinc India, FACOR and Copper India drove the quarter. In August, Vedanta Resources repaid its facilities and fully released encumbrances on 2.14 billion Vedanta shares, easing the pledge overhang. Vedanta [][***** shares closed at Rs 259.05 on 19 August 2026, down 1.4 percent over the past month. The screen's 5.2x P/E and 5 percent yield carry pre-demerger earnings and payouts, so they overstate cheapness. My view: the operating quarter is strong and the August pledge release removes the oldest discount on this name. But every historical metric here is demerger-distorted, so treat this as fresh underwriting, not a continuation trade. The residual is a zinc-silver cash engine; the bet is commodity prices and capital discipline in the new structure. Levels: the stock has held a narrow Rs 258 to 267 band; the June block deal near Rs 294 is the overhead to clear, below Rs 258 the drift extends. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.