Mumbai: Shares of Vedanta Ltd fell sharply on Friday, January 30, dropping over 8 percent in early trade after the company announced its Q3 FY26 results. The stock touched an intraday low of Rs 702.40 on the NSE, as investors reacted to the earnings and overall financial position of the company.
The fall came even though Vedanta reported strong profit and revenue growth for the December quarter.
Vedanta Q3 FY26 financial performance
Vedanta reported a consolidated profit after tax (PAT) of Rs 7,807 crore in Q3 FY26, marking a 60 percent rise compared to Rs 4,876 crore in the same quarter last year.
The company’s consolidated revenue from operations rose 19 percent year-on-year to Rs 45,899 crore, supported by higher metal prices and improved production levels.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at a record Rs 15,171 crore, making it the company’s highest-ever quarterly operating profit.
Production growth across key segments
Vedanta saw strong growth in production across several businesses. Alumina production jumped 57 percent to 7.94 lakh tonnes, while aluminium cast metal production stood at 6.20 lakh tonnes, slightly higher than last year.
At Zinc India, mined metal production increased 4 percent to 2.76 lakh tonnes. Zinc International reported even stronger growth, with mined metal production rising 28 percent to 59,000 tonnes.
These numbers show better operational performance across most of Vedanta’s major divisions.
Debt position remains a concern
Despite strong earnings, Vedanta continues to carry high debt. As of December 31, 2025, the company’s net debt stood at Rs 60,624 crore, while gross debt was Rs 80,709 crore.
High debt levels remain one of the key concerns for investors, especially in a volatile commodity market.
What global brokerages say?
Citi said Vedanta’s Q3 EBITDA rose 34 percent year-on-year, driven by strong commodity prices, higher volumes and lower costs. The brokerage expects aluminium prices to remain strong and estimates Vedanta’s FY26 dividend at Rs 40 per share.
JP Morgan said EBITDA was slightly better than estimates and noted improvement in net debt-to-EBITDA, which fell to 1.23x from 1.37x in the previous quarter.
Both brokerages highlighted progress in capacity expansion projects and said the company’s demerger is likely to be completed by Q1 FY27.
Demerger and future outlook
Vedanta plans to split its businesses into separate listed companies. The demerger is targeted for April 1, with listings expected by mid-to-end May.
The company believes this move will unlock value and improve focus across businesses. However, short-term market reaction shows investors remain cautious due to debt and future execution risks.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to risks, and readers should consult certified financial advisors before making decisions.
