Vedanta Oil & Gas swings to ₹945 crore Q1 profit; operational EBITDA jumps 61%
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Vedanta Oil & Gas Ltd. reported a consolidated net profit of ₹945 crore for the quarter ended June 30, 2026, reversing a loss of ₹104 crore in the year-ago period, aided by robust operating performance and exceptional gains from discontinued operations.
Revenue from operations rose 8.5% year-on-year to ₹2,507 crore from ₹2,311 crore, driven by improved commodity realisations. Operational EBITDA climbed 61.2% to ₹814 crore from ₹505 crore a year earlier, while the EBITDA margin expanded sharply to 32.5% from 21.9%, reflecting improved operating leverage and cost efficiencies.
Operational performance improves
During the quarter, the company reported average gross operated production of 77.7 thousand barrels of oil equivalent per day (kboepd), while average working interest production stood at 51.1 kboepd.
Vedanta Oil & Gas also announced a gas discovery at the Kaam BCP-1ST well in the Kameshwari-Graben area of Rajasthan's Barmer Basin. The company said it will undertake detailed technical and commercial evaluation of the discovery.
"Q1FY27 marked a defining milestone in our journey with the company's listing on the BSE and NSE. The quarter's performance reflects the resilience of our business and our focus on operational excellence, exploration success with Deep Gas discovery, and disciplined capital allocation," Interim CEO and whole-time director Jim Johnny Gast said.
Exceptional items shape reported earnings
The reported profit included an exceptional loss of ₹441 crore in continuing operations, primarily on account of impairment provisions and demerger-related costs. However, this was more than offset by an exceptional gain of ₹1,056 crore from the slump sale of discontinued businesses, helping the company return to profitability.
Chief financial officer Arpit Mundra said the company's performance was supported by a favourable pricing environment and disciplined execution.
"We delivered a strong Q1 FY27 performance, driven by favourable commodity prices, healthy realizations, and strong operational discipline. Our focus on cost efficiency and value maximization enabled us to translate a supportive pricing environment into strong financials, while continuing to invest in future growth," Mundra said.
Vedanta Oil & Gas currently holds interests in 44 blocks spanning more than 47,000 square kilometres across India with resources of 1.4 billion barrels of oil equivalent, and said it remains focused on exploration, enhanced oil recovery and infill development campaigns to drive future production growth.