Vedanta profit plunges 33% in second quarter as demergers take toll

Vedanta reported a 33 per cent contraction in net profit attributable to shareholders for the second quarter of the financial year, with earnings falling to Rs 3,650 crore from Rs 5,473 crore in the preceding quarter.

The quarter-on-quarter dip reflects the absence of contribution from business divisions that were separated through demergers, which reshaped the company's portfolio and reduced its consolidated earnings base. The demerged entities now operate as independent listed companies, no longer consolidated into Vedanta's financial statements.

Despite the profit headwind, Vedanta demonstrated operational resilience with EBITDA climbing 17 per cent during the period. The improvement in earnings before interest, tax, depreciation and amortisation signals stronger underlying operational performance across the retained business segments, which span aluminium, zinc, oil and gas, and iron ore operations.

The mixed results underscore the transition phase Vedanta is navigating following its corporate restructuring. While near-term profit metrics have contracted due to the structural changes, management has positioned the demergers as a strategy to unlock shareholder value and allow focused operations in distinct commodity sectors.

Investors will be watching closely to assess whether the improved EBITDA trajectory can translate into stronger profitability in coming quarters as the company stabilises under its new corporate structure.