Vedanta Iron And Steel Limited

Key Financial Figures - Consolidated

Quarter Ended September 30, 2026 (Q2 FY27):

  • Revenue from operations: ₹2,788 crore (Q2 FY26: ₹2,858 crore)
  • Total income: ₹2,846 crore (Q2 FY26: ₹3,015 crore)
  • Total expenses: ₹3,129 crore (Q2 FY26: ₹3,458 crore)
  • Loss before exceptional items and tax: ₹283 crore (Q2 FY26: loss ₹443 crore)
  • Exceptional items: ₹37 crore (stamp duty on transfer of land, buildings and mining rights)
  • Loss before tax: ₹320 crore (Q2 FY26: loss ₹443 crore)
  • Net loss after tax: ₹324 crore (Q2 FY26: loss ₹477 crore)
  • EPS (continuing and discontinued): ₹(0.80) (Q2 FY26: ₹(1.19))

Half Year Ended September 30, 2026 (H1 FY27):

  • Revenue from operations: ₹6,450 crore (H1 FY26: ₹5,953 crore)
  • Total income: ₹6,597 crore (H1 FY26: ₹6,355 crore)
  • Total expenses: ₹6,715 crore (H1 FY26: ₹6,886 crore)
  • Loss before exceptional items and tax: ₹118 crore (H1 FY26: loss ₹531 crore)
  • Exceptional items: ₹37 crore
  • Loss before tax: ₹155 crore (H1 FY26: loss ₹531 crore)
  • Net loss after tax: ₹203 crore (H1 FY26: loss ₹622 crore)
  • EPS (continuing and discontinued): ₹(0.49) (H1 FY26: ₹(1.55))

Segment Performance - Q2 FY27

Continuing Operations:

  • Iron Ore segment revenue: ₹638 crore; EBITDA: ₹10 crore
  • Steel segment revenue: ₹2,488 crore; EBITDA: ₹73 crore

Discontinued Operations (Port Business):

  • Revenue: ₹18 crore; Profit before tax: ₹13 crore; Net profit: ₹10 crore

Assets and Liabilities Position (Consolidated)

As of September 30, 2026:

  • Total assets: ₹17,208 crore (March 31, 2026: ₹19,392 crore)
  • Total equity: ₹5,971 crore (March 31, 2026: negative ₹6,531 crore)
  • Total liabilities: ₹11,237 crore (March 31, 2026: ₹25,923 crore)
  • Cash and cash equivalents: ₹242 crore (March 31, 2026: ₹1,044 crore)

Key Events and Transactions

Demerger Scheme:

The National Company Law Tribunal, Mumbai Bench approved the Scheme of Arrangement among Vedanta Limited, the Company, and their shareholders/creditors on December 16, 2025. The scheme became effective on May 1, 2026 (Appointed Date), resulting in:

  • Demerger of Iron Ore Undertaking from Vedanta Limited to the Company
  • Allotment of 391,038,805 equity shares (face value ₹1 each) to eligible Vedanta Limited shareholders on May 4, 2026
  • The Company ceased to be a subsidiary of Vedanta Limited

Business Transfers:

1. Acquisition of MetCoke business from MALCO Energy Limited (fellow subsidiary) on slump sale basis for ₹1 consideration effective April 30, 2026. Book net worth was negative ₹299 crore, with difference recognized in capital reserve.

2. Hive-off of Port Business at Visakhapatnam to Vedanta Base Metals Limited (subsidiary of Vedanta Limited) on slump sale basis effective April 30, 2026. Assets/liabilities transferred at carrying value of ₹452 crore.

Subsidiary Matters:

1. ESL Steel Limited: Facing ongoing regulatory challenges regarding Environment Clearance (EC) and Forest Clearance (FC). The Jharkhand High Court on May 1, 2025, set aside revocation of EC and remanded matter back to MoEFCC for fresh hearing. ESL can continue operations subject to final decision.

2. Bloom Fountain Limited: Debt waiver of ₹13,138 crore (principal, accrued interest) from Fujairah Gold FZE and THL Zinc Limited effective April 30, 2026, pursuant to restructuring under the Scheme. Amount written back to capital reserve.

Audit and Compliance

  • Statutory Auditor: M/s S.R. Batliboi & Co. LLP, Chartered Accountants
  • Limited Review Report issued with unmodified opinion
  • Financial results include unaudited interim financial results of 5 subsidiaries
  • The report relies on review/audit reports of other auditors for subsidiaries

Cash Flow Highlights (H1 FY27 Consolidated)

  • Net cash from operating activities: ₹753 crore (H1 FY26: used ₹622 crore)
  • Net cash from investing activities: ₹1,446 crore (H1 FY26: ₹452 crore)
  • Net cash used in financing activities: ₹2,671 crore (H1 FY26: used ₹466 crore)
  • Net decrease in cash: ₹463 crore (H1 FY26: decrease ₹635 crore)

Capital Structure

  • Paid-up equity share capital: ₹391 crore (391,038,805 shares of ₹1 each)
  • Reserves excluding revaluation reserves: Negative ₹6,674 crore as of March 31, 2026