Vedanta Iron And Steel Ltd (VISL) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- The steel plant's Phase 1 expansion is awaiting a final regulatory approval, expected soon, after which it will take 4-5 months and INR 600 crore to complete.
- Management projects total cost savings of around $50 per tonne in the steel business post-expansion, aiming for an EBITDA of INR 10,000-11,000 per tonne by FY28.
- The Liberia iron ore project requires $70-75 million capex per million-tonne and has a 3.5-year payback at a $90/tonne index, with capex expected to start later this year.
Performance Overview
- Vedanta Iron And Steel reported flat year-on-year revenue for Q2, which was a seasonally soft quarter impacted by plant shutdowns, softer steel prices in the first two months, and elevated input costs.
- Despite flat revenue, EBITDA for the quarter grew by a significant 56% year-on-year, although profitability was sequentially weaker.
- Steel production increased by 4% year-on-year to 532 kt, supported by completed plant shutdowns at Bokaro and Goa, which are expected to improve production stability in the coming quarters.
- Iron ore production declined by 13% year-on-year to 1.5 million tonnes, primarily due to monsoon seasonality and lower sales from Karnataka.
- The company maintained a healthy balance sheet with a net debt-to-EBITDA ratio of 1.3x and a stable credit rating of AA from CRISIL.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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Tone & Disclosure
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