MUMBAI–Vedanta Iron and Steel reported a consolidated net loss of Rs 324 crore for the quarter ended September 2026, reversing a profit of Rs 121 crore in the preceding quarter as weaker performance in its iron ore and steel businesses weighed on earnings.
According to the company’s stock exchange filing Tuesday, revenue from operations declined 23.87% to Rs 2,788 crore during the second quarter of fiscal year 2027, compared with Rs 3,662 crore in the April-June period.
The company’s operating profitability deteriorated significantly, with earnings before interest, taxes, depreciation and amortization (EBITDA) plunging 90.55% to Rs 48 crore from Rs 508 crore in the previous quarter.
As a result, its EBITDA margin contracted sharply to 1.7% from 13.9%, reflecting substantially weaker operating performance.
Despite the sequential deterioration, Vedanta Iron and Steel reported an improvement in its financial results compared with the same period last year.
The company’s consolidated net loss narrowed 32.08% from Rs 477 crore in the July-September quarter of fiscal year 2026.
Revenue from operations declined 2.45% year-over-year from Rs 2,858 crore, while total expenses fell 9.51% to Rs 3,129 crore from Rs 3,458 crore.
The reduction in expenses helped limit the company’s losses compared with the previous year, although it was insufficient to offset the sharp decline in quarterly operating earnings.
During the September quarter, Vedanta Iron and Steel recorded an exceptional gain of Rs 11 crore following the acquisition of company-owned land by the Maharashtra State Infrastructure Development Corporation.
The transaction involved approximately 7,200 square meters of land in Nashik acquired for the proposed Ring Road Project.
The company’s iron ore business experienced a particularly steep decline during the quarter.
Revenue from the segment dropped to Rs 638 crore from Rs 1,190 crore in the preceding quarter, while segment EBITDA plunged to Rs 10 crore from Rs 179 crore.
The sharp reduction in earnings highlighted the challenges facing the company’s iron ore operations during the period.
Performance in the steel division also weakened considerably.
Revenue from the steel segment declined to Rs 2,488 crore from Rs 2,839 crore in the June quarter.
Segment EBITDA fell to Rs 73 crore from Rs 336 crore, reflecting a substantial decline in profitability.
Despite the disappointing quarterly financial results, Vedanta Iron and Steel shares gained ground during Tuesday’s trading session.
The company’s stock closed at Rs 27.95, rising 5%, or Rs 1.33, for the day.
However, the shares remained under pressure over longer periods, reflecting weaker investor sentiment surrounding the company’s recent performance.
The stock declined 3.35% over the previous week and 14.73% during the past month. Over the last three months, shares were down 7.91%.
The latest quarterly results underscore the challenges facing Vedanta Iron and Steel as declining revenue and compressed operating margins in its core businesses continue to weigh on profitability. (Source: IANS)
