Vedanta Aluminium Metal Limited recorded its highest-ever quarterly aluminium production in the second quarter of fiscal 2027, while alumina output surged on capacity expansion, according to the company’s production release filed with the BSE on October 3.
Aluminium production rose 5% year on year to 649,000 tonnes in the July–September quarter, while alumina production increased 37% to a record 895,000 tonnes. For the first half of FY2027, aluminium output climbed 5% to 1.281 million tonnes, and alumina production rose 39% to 1.721 million tonnes, supported by the ramp-up and stabilisation of expansion capacity.
Zinc India’s refined metal production increased 7% year on year to 264,000 tonnes in Q2 FY2027, also a quarterly record. Saleable steel production rose 4% to 532,000 tonnes, while power sales increased 26% to 5,593 million units.
However, the group’s operating performance remained mixed. Saleable iron ore production declined 13% year on year to 1.52 million dry metric tonnes, while average daily gross operated oil and gas production fell 19% to 72.2 thousand barrels of oil equivalent per day.
The production update highlights continued growth in Vedanta’s aluminium and other metals operations, supported by capacity expansion and operational improvements, alongside weaker output from its oil and gas and iron ore businesses.
However, the company faces raw-material cost pressures following the Odisha High Court’s October 1 dismissal of its petition seeking bauxite supplies from Odisha Mining Corporation (OMC) under a historical pricing arrangement. Brokerage CLSA estimated that the ruling could increase Vedanta Aluminium’s production costs by around $10/tonne from Q1 FY2027 levels.
OMC has subsequently issued Vedanta Aluminium a demand notice for ₹5,600 crore, payable by October 31, 2026, according to Mint. CLSA estimated a potential one-time financial impact of up to $290 million, including interest. Vedanta is reviewing the judgment and evaluating its legal options. The company has said the court order does not affect current bauxite supplies, while increased sourcing from OMC and the planned commissioning of its captive Sijimali bauxite mine could help moderate costs over the medium term.
