Vedanta Q2 Preview: Tailwinds In Ferrous Movement, Diverse Portfolio Has Analysts Bullish
Vedanta reported a fall in both revenue and net profit for Q1 FY26.
Vedanta Ltd. is gearing up to announce its financial results for the second quarter of FY26 on Friday.
The mining giant not only has a strong 'buy' from, but is also a preferred choice for analysts at Investec. They attribute LME/FX movement tailwinds "with Zinc/Ally prices increasing 2/10% year-on-year, 7/7% sequentially" to their bullish stance. The brokerage has set its target price at Rs 550.
Whereas, Bank of America has kept its target price unchanged at Rs 455 per share for the metal major and keeps its stance at 'Neutral'.
"Given the diversity in Vedanta's business portfolio, we use sum-of-the-parts (SOTP) to arrive at our PO of Rs 455 per share," it said in its preview report.
Weakness in LME, crude oil, adverse coal mix and higher coal costs, premium valuations in potential acquisitions, lower dividend payout, incomplete demerger plan or significantly delays in it, increase in brand fee rate, further ICL issuances were some of the downside risks highlight by BofA.
On the other hand, upside risks include — higher commodity prices and visibility on captive bauxit.
Analysts' Estimates
(Consolidated, QoQ)
Revenue seen at Rs 38,312.73 crore versus Rs 37,434 crore
Ebitda seen at Rs 11,195.58 crore versus Rs 9,918 crore
Margin 29.2% versus 26.5%
Net Profit seen at Rs 3,629.54 crore versus Rs 3,185 crore
Vedanta Q1 Results
Vedanta Ltd.'s profit in the first quarter of the financial year 2026 fell 8.6% quarter-on-quarter.
The metal producer's consolidated bottom line stood at Rs 3,185 crore compared to Rs 3,483 crore in the quarter ended March, according to an exchange filing on Thursday.
Vedanta Q1 Highlights (Consolidated, QoQ)
Revenue down 6.5% at Rs 37,824 crore versus Rs 40,455 crore.
Ebitda down 13.5% at Rs 9,918 crore versus Rs 11,466 crore.
Margin at 26.2% versus 28.3%.
Net profit down 8.6% at Rs 3,185 crore versus Rs 3,483 crore.
