Vedanta Iron and Steel Ltd reported a 32.1 per cent year-on-year decline in net loss after tax to Rs 324 crore in the September quarter of FY27, compared with Rs 477 crore in the corresponding quarter last fiscal.
Revenue from operations fell 2.4 per cent to Rs 2,788 crore in the second quarter from Rs 2,858 crore a year earlier. Total income declined 5.6 per cent to Rs 2,846 crore from Rs 3,015 crore in the year-ago period.
Total expenses fell 9.5 per cent to Rs 3,129 crore in the quarter from Rs 3,458 crore a year earlier. Loss before exceptional items and tax narrowed to Rs 320 crore from Rs 443 crore, a decline of 27.8 per cent.
Finance costs fell 60.3 per cent to Rs 171 crore from Rs 431 crore in the corresponding quarter last year. However, the cost of materials consumed rose 9.2 per cent to Rs 1,714 crore from Rs 1,569 crore.
The company’s loss after tax from continuing operations narrowed to Rs 324 crore from Rs 494 crore in the year-ago quarter.
Vedanta Iron and Steel H1 performance
For the first half of FY27, Vedanta Iron and Steel reported an increase of 54 per cent in earnings before interest, taxes, depreciation and amortisation (EBITDA) to Rs 598 crore. Revenue rose 8 per cent to Rs 6,450 crore.
The EBITDA margin expanded by 275 basis points year-on-year to 9 per cent. The company reported a loss after tax of Rs 203 crore for the first half, compared with Rs 622 crore in the corresponding period of FY26.
Steel production increased 4 per cent year-on-year to 1.114 million tonnes in the first half. Pig iron production rose 4 per cent to 568,000 tonnes, the highest half-yearly output recorded by the company.
Iron ore production stood at 4.2 million tonnes during the period. In the September quarter, iron ore production in Odisha increased 34 per cent year-on-year to 0.9 million dry metric tonnes, while production in Goa rose 22 per cent to 0.1 million tonnes.
Quarterly operating performance
For the September quarter, EBITDA stood at Rs 83 crore, up 56 per cent year-on-year. The EBITDA margin increased by 112 basis points to 3 per cent.
The company said quarterly performance was affected by seasonal disruptions in iron ore production, planned plant shutdowns and higher input and conversion costs.
Pankaj Kumar Sharma, CEO of Vedanta Iron and Steel, said the company completed planned shutdowns at its Bokaro and Goa operations during the quarter to improve asset reliability for the second half of FY27.
He said the company also continued work on growth projects and renewable energy initiatives, with a focus on safety and operational discipline.
Navin Jaju, CFO of Vedanta Iron and Steel, said first-half EBITDA rose 54 per cent to Rs 598 crore, while the margin expanded by 275 basis points to 9 per cent. He said the company would continue to focus on capital allocation, working capital management and cash generation.
Credit rating and renewable energy initiatives
CRISIL assigned Vedanta Iron and Steel an AA/Stable credit rating during the September quarter and the first half of FY27.
The company also secured 21 MW of solar power through open access for its ESL Bokaro operations. The arrangement has the potential to reduce annual carbon dioxide emissions by around 50,000 tonnes.
The lost-time injury frequency rate (LTIFR) improved to 0.41 in the September quarter from 0.64 in the June quarter. The total recordable injury frequency rate (TRIFR) declined to 0.71 from 1.59 over the same period.