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/Ally prices as a key factor. This is a significant development for investors, as it indicates a positive outlook for the company’s future performance. To learn more about Zinc prices in India, and how they impact the metal sector, 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 its stance at ‘Neutral’. The bank’s analysts use a sum-of-the-parts (SOTP) approach to arrive at their price objective of Rs 455 per share. This approach takes into account the diversity of Vedanta’s business portfolio, which includes metal sector operations, as well as other segments.
Bank of America has highlighted several downside risks for Vedanta, including weakness in LME, crude oil, adverse coal mix, and higher coal costs. The bank also notes that premium valuations in potential acquisitions, lower dividend payout, incomplete demerger plan, or significantly delays in it, increase in brand fee rate, and further ICL issuances are potential risks. However, the bank also notes that higher commodity prices and visibility on captive bauxite are potential upside risks. For more information on commodity prices in India, and their impact on the stock market, read our latest article.
Q2 Preview
For the second quarter, Vedanta’s revenue is seen at 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, compared to Rs 9,918 crore in the previous quarter. The company’s margin is expected to be 29.2%, up from 26.5% in the previous quarter. Net profit is seen at Rs 3,629.54 crore, up from Rs 3,185 crore in the previous quarter.
Q1 Highlights
Vedanta’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. Revenue was down 6.5% at Rs 37,824 crore, compared to Rs 40,455 crore in the previous quarter. Ebitda was down 13.5% at Rs 9,918 crore, compared to Rs 11,466 crore in the previous quarter. Margin was at 26.2%, compared to 28.3% in the previous quarter.
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Conclusion
In conclusion, Vedanta’s Q2 preview is expected to be positive, driven by tailwinds in ferrous movement and a diverse portfolio. While Bank of America has maintained a neutral stance, Investec’s analysts are bullish on the company’s future performance. Investors should keep a close eye on the company’s Q2 results and future developments, as they are likely to have a significant impact on the stock price. For more information on stock market analysis and how to make informed investment decisions, read our latest articles.