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Informist, Tuesday, Oct. 27, 2026

 

--Vedanta Iron: Expect capex of INR 6 bln-INR 7 bln for second half of FY27 

--CONTEXT: Vedanta Iron and Steel mgmt comments in post-earnings analyst call 

--Vedanta Iron: Sees first production from Liberia project in 24-30 months 

 

By Ayush Jaiswal and Arundathi A R

 

MUMBAI – Vedanta Iron and Steel Ltd. is expected to incur capital expenditure of INR 6 billion to INR 7 billion in the second half of 2026-27 (Apr-Mar), the company's management said at a post-earnings analyst call Tuesday. The company incurred capital expenditure of INR 3 billion during Apr-Sept. Of its total capital expenditure programme, it has spent INR 28 billion to date, with another INR 9 billion to be spent. 

 

The company will expand its overall hot metal capacity at Bokaro from 1.6 million tonnes per annum to 3.2 million tonnes per annum. "And when we look at the capacities of both Bokaro and Goa put together, the capacity will move closer to 4.4 million tonnes with this expansion," a senior company official said.

 

"We have made good progress on statutory approval for our ESL growth project, and we are in the final stage of it, and we are expecting some good news to come soon," the company's management said.

 

The company expects the added capacity to drive cost efficiencies. "With the capacity enhancement and with the railway line logistics network coming in, totally we will be saving around $30 (per tonne) to $35 and also the fixed cost absorptions will give me another $10," the company's senior official said. "We are seeing that we will be able to save around $50 (per tonne) and that around INR 4,500 to INR 5,000 per tonne we will be able to get from there," he added.

 

The company expects mining at its plant in Liberia, West Africa, to begin operations in 24–30 months. "So somewhere in FY30, we will start seeing the first production coming from that particular asset, if everything goes well," the company said.

 

For the September quarter, Vedanta Iron & Steel's consolidated net loss narrowed to INR 3.11 billion from INR 4.65 billion a year ago. Revenue from operations fell 2% year on year to INR 27.88 billion. The company's consolidated earnings before interest, tax, depreciation, and amortisation rose 56% on year to INR 830 million, while its EBITDA margin expanded by 112 basis points to 3%. 

 

Tuesday, the company's shares ended at INR 27.95 on the National Stock Exchange, up 5% from the previous close. The company released its September quarter results after market hours.  End

 

Edited by Saji George Titus

 

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