Vedanta Q2 Preview: Tailwinds In Ferrous Movement, Diverse Portfolio Has Analysts Bullish
Vedanta Ltd. is gearing up to announce its financial results for the second quarter of FY26 on Friday. The mining giant not only has a strong ‘buy’ from, but is also a preferred choice for analysts at Investec. They attribute LME/FX movement tailwinds “with Zinc/Ally prices increasing 2/10% year-on-year, 7/7% sequentially” to their bullish stance. The brokerage has set its target price at Rs 550.
Investec’s Bullish Stance
Investec’s analysts are bullish on Vedanta due to the company’s diverse portfolio and the tailwinds in ferrous movement. The brokerage firm has set a target price of Rs 550, citing the increase in Zinc and Ally prices as a key driver of their bullish stance.
For more information on Vedanta Ltd., please visit our website.
Bank of America’s Neutral Stance
On the other hand, Bank of America has kept its target price unchanged at Rs 455 per share for the metal major and maintains a ‘Neutral’ stance. The brokerage firm uses a sum-of-the-parts (SOTP) approach to arrive at its target price, considering the diversity in Vedanta’s business portfolio.
The firm has highlighted several downside risks, including weakness in LME, crude oil, adverse coal mix, and higher coal costs, premium valuations in potential acquisitions, lower dividend payout, incomplete demerger plan, increase in brand fee rate, and further ICL issuances.
However, the firm also notes that upside risks include higher commodity prices and visibility on captive bauxite.
For more information on Bank of America, please visit our website.
Q2 Preview
Vedanta Ltd.’s profit in the first quarter of the financial year 2026 fell 8.6% quarter-on-quarter. The metal producer’s consolidated bottom line stood at Rs 3,185 crore compared to Rs 3,483 crore in the quarter ended March, according to an exchange filing on Thursday.
The company’s revenue is expected to be Rs 38,312.73 crore, up from Rs 37,434 crore in the previous quarter. Ebitda is expected to be Rs 11,195.58 crore, up from Rs 9,918 crore, with a margin of 29.2% compared to 26.5% in the previous quarter.
Net profit is expected to be Rs 3,629.54 crore, up from Rs 3,185 crore in the previous quarter.
For more information on Q2 results, please visit our website.
Vedanta Q1 Highlights
Vedanta Ltd.’s Q1 highlights include a revenue decline of 6.5% to Rs 37,824 crore, down from Rs 40,455 crore in the previous quarter. Ebitda declined 13.5% to Rs 9,918 crore, down from Rs 11,466 crore, with a margin of 26.2% compared to 28.3% in the previous quarter.
Net profit declined 8.6% to Rs 3,185 crore, down from Rs 3,483 crore in the previous quarter.
For more information on Vedanta Q1 results, please visit our website.
Investment Strategy
Investors looking to invest in Vedanta Ltd. should consider the company’s diverse portfolio and the tailwinds in ferrous movement. However, they should also be aware of the downside risks highlighted by Bank of America.
For more information on investment strategy, please visit our website.
Conclusion
In conclusion, Vedanta Ltd. is set to announce its Q2 FY26 results, with analysts at Investec and Bank of America sharing their previews and target prices. The company’s diverse portfolio and the tailwinds in ferrous movement are expected to drive growth, but investors should also be aware of the downside risks.
For more information on Vedanta Ltd. stock price, please visit our website.