Vedanta Iron Q2 Results: Loss narrows to Rs 324 crore, revenue declines 2% YoY

The growth was driven by better steel realisations, operational excellence and efficiency improvements.Vedanta Iron Q2FY27 operational highlightsVISL reported a 60% YoY and 17% quarter-on-quarter (QoQ) reduction in finance costs, primarily due to the settlement of inter-company payables as part of group demerger adjustments. Finance costs declined 58% on a half-yearly basis.Live EventsInterest income fell 85% YoY and 75% QoQ, mainly due to the elimination of inter-division receivables under Vedanta's approved demerger scheme.

On a half-yearly basis, interest income declined 74%.The company recorded its highest-ever half-yearly pig iron production of 568 kilotonnes (KT), up 4% YoY. It also completed planned shutdowns at its Bokaro and Goa steel plants to enhance operational reliability for the second half of FY27.VISL further secured 21 MW of solar power through open access at ESL Bokaro, an initiative expected to reduce carbon emissions by approximately 50,000 tonnes annually.The company's Lost Time Injury Frequency Rate (LTIFR) improved to 0.41 in Q2FY27 from 0.64 in Q1FY27.

The Total Recordable Injury Frequency Rate (TRIFR) also declined to 0.71 from 1.59 over the same period.VISL's corporate social responsibility (CSR) programmes reached more than 57,000 beneficiaries across 69 villages in five states. The initiatives covered healthcare, education, skill development, livelihoods, women's empowerment, sports, environmental protection and community infrastructure.Flagship initiatives, including Nand Ghars, the TACO-supported Animal Birth Control Centre, Vedanta Computer Centres and Labs, the Sesa Football Academy and the ESL Archery Academy, continued to support community development through improved access to education, livelihoods, community services and sporting opportunities.Management commentary Looking ahead, VISL said India's infrastructure development, manufacturing expansion and rising steel demand presented a long-term opportunity for the sector.

The company remains focused on improving operational efficiency, managing costs, strengthening production consistency and maintaining financial discipline to build resilience through industry cycles and create sustainable long-term value.Pankaj Kumar Sharma, CEO of VISL, said the company delivered a stronger year-on-year operating performance in the first half of FY27, supported by improved steel realisations, higher steel volumes and continued efficiency initiatives.He added that the company had completed planned shutdowns at its Bokaro and Goa operations to strengthen asset reliability for the second half of the fiscal year.

VISL also continued to advance its growth projects and renewable energy initiatives, while maintaining a focus on safety, operational discipline and long-term value creation.Navin Jaju, CFO of VISL, said the company's EBITDA for the first half of FY27 increased 54% YoY to Rs 598 crore, while margins expanded by 275 basis points to 9%. He noted that profitability had improved materially from the corresponding period last year and that the company's net debt-to-EBITDA ratio reflected a healthy balance sheet position."We remain focused on disciplined capital allocation, working capital management and cash generation as we progress our strategic growth investments," Jaju said.Vedanta Iron share priceVedanta Iron shares settled 5% higher at Rs 27.95 apiece on the NSE on Tuesday, compared with the previous close of Rs 26.62.The stock has gained 32.72% so far in 2026, according to the NSE data.At Tuesday's closing price, the company's market capitalisation stood at approximately Rs 10,929.53 crore.Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser.

Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution.

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