Vedanta Iron and Steel Limited (VISL) has reported a substantial increase in its earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the first half of the fiscal year 2027. The company’s EBITDA surged by 54% year-on-year, reaching ₹598 crore, while revenue rose by 8% to ₹6,450 crore. This performance was accompanied by an expansion in the EBITDA margin by 275 basis points to 9%, reflecting improved operational efficiency.
Despite the positive growth in operating earnings, VISL recorded a loss after tax of ₹203 crore for H1 FY27, a significant improvement from the ₹622 crore loss in the corresponding period of the previous year. The company’s integrated mining and steel operations contributed to a 4% increase in steel production, reaching 1.114 million tonnes. The highest ever half-yearly production of pig iron was recorded at 568 kilotonnes, marking a 4% year-on-year increase.
In the second quarter of FY27, VISL’s EBITDA stood at ₹83 crore, a 56% increase from the previous year, while the EBITDA margin improved by 112 basis points to 3%. The company reported a loss after tax of ₹324 crore, a reduction from the ₹477 crore loss in Q2 FY26. The quarterly performance was impacted by seasonal disruptions in iron ore production, planned plant shutdowns, and higher input and conversion costs.
VISL’s integrated business model, which combines resource access, mining operations, and steel production, continues to provide a strategic advantage in managing operational interdependencies. The company remains focused on improving operational efficiency, managing costs, and ensuring consistent production performance.
The company’s financial resilience was further supported by CRISIL’s assignment of an AA/Stable credit rating during Q2 and H1 FY27. This rating reflects an independent assessment of VISL’s financial profile, underpinned by its EBITDA growth and margin expansion. Analysts note that VISL’s focus on prudent liquidity management, disciplined capital allocation, and robust financial controls positions it well to navigate the cyclical nature of the industry and capitalise on long-term opportunities in India’s growing infrastructure and manufacturing sectors.
