Vedanta – VRL H1 FY26 Analysis

Author: Viceroy Research Published on: December 8, 2025 Published in: Vedanta (NSE:VEDL)

December 8, 2025 – On December 5, 2025, Vedanta Resources Limited (VRL) released its H1 FY26 earnings. The headline consolidated numbers mask the reality: VRL PropCo posted its worst half-year performance on record. To isolate credit risk, Viceroy subtracted VEDL’s H1 FY26 consolidated results from VRL’s figures to analyze the PropCo earnings directly.

VRL PropCo delivered its worst half-year on record in H1 FY26, with negative earnings, negative liquidity and negative free cash flow.
PropCo reported a $1,261m net loss to owners, confirming that the holding structure cannot generate sustainable earnings.
Liquidity deteriorated sharply, with a $549m free cash flow loss, driven largely by dividends to non-controlling interests.
KCM reported a $192m operating loss and spending only $8m on its key expansion project despite receiving $346m in funding. Depreciation of $186m indicates continued asset shrinkage.
VRL PropCo gross debt fell by $689, but this was offset by a $370m increase in net debt at the consolidated level, meaning the group is merely shifting leverage between entities rather than deleveraging

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