Vedanta Iron and Steel Limited reports strong Q1 FY27 results, driven by operational efficiencies and rising realization

Vedanta Iron and Steel Limited reports strong Q1 FY27 results, driven by operational efficiencies and rising realization​

Mumbai, July 29, 2026: Vedanta Iron and Steel Limited (VISL) today announced its consolidated financial results for the first quarter of fiscal year 2027 (Q1 FY27), ending June 30, 2026. The company reported significant improvements in revenue and profitability, attributing the performance to increased volumes and improved product realization across its steel and iron ore businesses.

The company's revenue from operations for Q1 FY27 stood at ₹3,612 crore, marking an 18% year-on-year (YoY) increase. EBITDA jumped 54% YoY to ₹515 crore, with the operating margin improving by 322 basis points (bps) to 14%. The company’s total profit after taxes reached ₹121 crore, in contrast to a net loss of ₹145 crore reported in the corresponding quarter of FY26.

Operational and Market Highlights​

VISL demonstrated robust operational performance across its key segments during the quarter:

• Steel Production: Saleable steel production increased 4% YoY and 2% Quarter-on-Quarter (QoQ), reaching 582 kilotonnes (KT). The steel business reported an EBITDA margin of ₹5,864 per ton, a 60% improvement YoY.
• Iron Ore Production: Iron ore production increased 4% YoY to 2.6 million dry metric tonnes (Mn DMT). This segment achieved an EBITDA margin of ₹1,226 per ton, representing a 24% jump YoY.
• Pig Iron Output: The company recorded its highest ever quarterly Pig Iron production at 291 kt, an 8% increase YoY. The Goa pig iron plant also reached a record high of 238 kt, up 12% YoY.

The financial performance metrics highlight notable improvements in cost management and debt reduction. Finance costs saw a sharp decrease of 55% YoY, reduced from ₹461 crore in Q1 FY26 to ₹207 crore in Q1 FY27, primarily due to reduced debt following pre and post-demerger adjustments.

VISL maintained a strong liquidity position, with Cash and cash equivalents standing at ₹1,018 crore. The Net Debt/EBITDA ratio improved to 1.3x as of Q1 FY27.

Debt Structure and Stability​

The company has made substantial progress in managing its debt profile. The consolidated debt structure showed a reduction in net external debt from ₹2,862 crore in March ’26 to ₹1,773 crore by June ’26.

Financial details related to the company’s debt and liquidity are summarized below:

Management Commentary​

Pankaj Kumar Sharma, CEO & WTD of VISL, stated that the company delivered resilient operational and financial performance despite a dynamic market. He credited margin improvements to higher iron ore production, record quarterly pig iron output, and operational efficiencies across steel businesses. He added that the company remains focused on growth projects and building a sustainable platform for long-term value creation.

Navin Jaju, CFO of VISL, noted that the business maintained healthy revenue growth (18%) and EBITDA growth (54%). He highlighted that disciplined capital allocation, improving operating performance, and a focus on cash generation position the company well for its next phase of expansion.

Segment Summaries​

Iron Ore Business:
The segment saw sales volumes reach 2.0 mn DMT, up from 1.9 mn DMT in Q1 FY26. The production breakdown across regions included Goa (0.6 mn DMT), Karnataka (0.5 mn DMT), and Odisha (0.9 mn DMT).

Steel Business:
Revenue for the steel segment was ₹2,839 crore (up from ₹2,428 crore in Q1 FY26). The financial health of the segment, underscored by an EBITDA margin of ₹5,864 per ton, reflects successful operational and efficiency improvements.

Awards and Recognition​

Vedanta Iron and Steel Limited received several accolades during the quarter, including:

• The Best Safety & Health Culture of the Year Award at the Minerals & Mining Conclave 2026 and the ASSOCHAM Business Excellence Awards.
• A Gold Award from the CII IQ National Safety Practice Competition 2026 for excellence in safety management practices.
• The Platinum Award for Best Kaizen in the Large Manufacturing Category.
• Recognition as one of India's Best Workplaces in Basic Metals & Fabricated Metal Products 2026 by Great Place to Work®.

VISL Stock Price Movement​

Today, shares of Vedanta Iron and Steel Limited gained strongly in post-market trading, closing at ₹30.78, reflecting a 4.98% increase. The stock traded within an intraday range of ₹29.25 to ₹30.98, with total trading volume reaching 24.77 million shares.