Vedanta Oil & Gas Q1 PAT Negative ₹151 Crore

Gross operated production averaged 77.7 thousand barrels of oil equivalent per day (kboepd) during Q1 FY27.
Production breakdown: 63.1 kboepd from Rajasthan, 11.6 kboepd from offshore assets (Ravva and Cambay), and 3.1 kboepd from OALP blocks.
Working interest production averaged 51.1 kboepd.
Key drivers: Well productivity improvement programs in Rajasthan, targeted well recovery, operational optimization, low-pressure operations offshore, and focused well interventions.

Rajasthan block production was 63.1 kboepd (Q1 FY26: 74.6 kboepd).
Ravva offshore production was 7.0 kboepd (Q1 FY26: 8.4 kboepd).
Cambay offshore production was 4.6 kboepd (Q1 FY26: 6.8 kboepd).
OALP blocks production was 3.1 kboepd (Q1 FY26: 3.5 kboepd).
Explanation: Production declines were attributed to natural reservoir decline, partially offset by operational improvements.

Revenue: ₹2,507 crore (QoQ: -3%; YoY: +9%)
EBITDA: ₹1,232 crore (QoQ: +16%; YoY: -3%)
EBITDA Margin: 49%
PAT from continuing operations: Negative ₹151 crore (includes exceptional cost net of tax of ₹345 crore for impairment and one-off items)
PAT before exceptional items from continuing operations: ₹194 crore
PAT from discontinued operations: ₹1,097 crore (one-time profit from transfer of non-mining business)
Reported PAT (continuing + discontinued): ₹945 crore
Unit operating cost: $17.4 per barrel (QoQ: -3%)
Drivers: Higher Brent prices (+15% QoQ) offset by lower volumes. Cost reduction driven by efficiencies in workover and well intervention programs.
Key Risks: Natural production decline, geopolitical disruptions affecting oil supply chains (Strait of Hormuz, Red Sea conflicts).

Not Specified

Liquid Investments including Cash & Cash Equivalents: ₹2,859 crore (corrected figure)
Net Debt: Near Zero (corrected figure)
Financial Health: Company maintains strong credit profile with AA+ stable ratings from CRISIL and ICRA.

Capital Expenditure: Focus on growth projects and infill wells (3 wells brought online; 5 wells drilled during quarter).
Investment Rationale: Focus on volume delivery, capex projects, maintaining cost discipline, and building exploration/development pipeline.

Investments in Innovation: Well productivity improvement programs, targeted well recovery, operational optimization, low-pressure operations.
Strategic Rationale: Strengthening decline management, accelerating well interventions, improving execution, maintaining high asset reliability.

Macro/Industry Trends: Continued disruptions in global oil production and supply chains; swinging status of Strait of Hormuz opening; Red Sea conflict disruptions; damage to Qatar's gas processing facilities impacting global gas trade.
Impact on Company: Higher commodity price volatility; supply glut during brief open periods of Strait of Hormuz drove price variability.

Strategic Outlook: Focus remains on safe operations, production delivery, cost discipline, and execution of growth portfolio.
FY Guidance: Full year FY27 direct operating costs expected to be in line with FY26 levels.
Risks and Opportunities: Geopolitical tensions affecting supply chains; commodity price volatility; natural production decline.

Renewable power sourcing: 40+ million units (MM kWh) run-rate
Emissions avoidance: 124 ktCO2e/annum
Waste & sludge processing: ~12 kbbls
Community outreach: ~0.6 million beneficiaries
Education support: ~1k students through career counselling & vocational training
Awards: India's Best Workplaces, Oil & Gas 2026 by GPWI