Vedanta share price rallied over 3% in early trade on Monday after the company reported its Q2 results. Vedanta shares rallied as much as 3.19% to ₹509.35 apiece on the BSE.
Billionaire Anil Agarwal-led metals and mining major Vedanta reported a 59% fall in its consolidated net profit at ₹1,798 crore for the second quarter of FY26, compared to ₹4,352 crore in the year-ago period. The sharp fall in Vedanta’s Q2 net profit was attributed to a net exceptional loss of ₹2,067 crore.
The company reported its highest-ever quarterly revenue at ₹39,868 crore in Q2FY26, registering a growth of 5.9% from ₹37,634 crore, year-on-year (YoY).
Vedanta also achieved a record second-quarter EBITDA of ₹11,612 crore. Strong operational performance in aluminium, zinc, and other segments supported these results.
The company’s EBITDA during the September quarter increased 12% YoY to ₹11,612 crore, supported by margin expansion of 69 bps to 34%.
Vedanta Q2 results met street expectations on robust operational performance, with analysts viewing the miner as well-positioned to benefit from the commodity rebound while advancing its deleveraging strategy.
Should you buy, sell or hold Vedanta shares?
“Vedanta delivered a steady Q2 performance led by a stronger aluminium show and alumina-led cost control, while zinc and O&G were broadly in line. The management reiterated its confidence in the demerger timeline, guiding for aluminium cost tailwinds in H2, and highlighting ongoing deleveraging at Vedanta Resources Ltd,” said Amit Lahoti, Senior Research Analyst at Emkay Global Financial Services Ltd.
With aluminium and zinc prices currently trending ~10% above their Q2 averages, the management expects unit costs to decline through H2 vs Q2 run-rates, reinforcing margin expansion visibility.
Emkal Global revised up its EBITDA estimates by 2-4% and raised Vedanta share price target to ₹625 apiece from ₹550 earlier. It retained a ‘Buy’ rating on the stock.
Brokerage firm Motilal Oswal Financial Services said that Vedanta Q2 results were better than its expectation, mainly driven by the outperformance of the aluminum business. It increased FY26 revenue, EBITDA, and PAT estimates by 4%, 2%, and 4%, factoring in the earnings beat in Q2FY26 and a stronger near-term outlook, and largely retained FY27 earnings.
“Capex plans are progressing well and will likely lead to further cost savings. Management targets to maintain strong growth in earnings, led by the upcoming capacity, which will produce higher VAP products. Vedanta remains firm on its deleveraging plans, and going forward, higher cash flows will support both its expansion plans and deleveraging efforts. The stock currently trades at 5.7x EV/EBITDA and 3.4x P/BV on the FY27 estimate,” Motilal Oswal said.
The brokerage firm reiterated its ‘Neutral’ rating on the stock with a SoTP-based target price of ₹550.
Vedanta Share Price Performance
Vedanta share price has been on a decent upward trend. The stock has gained 8% in one month and 20% in three months. Vedanta shares have rallied 15% on a year-to-date (YTD) basis, while the stock has jumped 118% in two years. Vedanta share price has delivered multibagger returns of 435% over the past five years.
At 9:30 AM, Vedanta share price was trading 2.80% higher at ₹507.40 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
