Now Reading: Vedanta sets $10 billion Ebitda target for FY27, plans Rs 20,000 crore debt cut
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Vedanta sets $10 billion Ebitda target for FY27, plans Rs 20,000 crore debt cut
Vedanta sets $10 billion Ebitda target for FY27, plans Rs 20,000 crore debt cut
Vedanta has set a group Ebitda target of about $10 billion for FY27, up from $6 billion in FY26, and plans to cut overall debt by more than Rs 20,000 crore, its…
The Story in Brief
Vedanta has set a group Ebitda target of about $10 billion for FY27, up from $6 billion in FY26, and plans to cut overall debt by more than Rs 20,000 crore, its CFO Ajay Goel told Business Standard. The parent entity Vedanta Resources reduced debt by $1.1 billion in Q1FY27 and refinanced borrowings to lower annual interest costs by over Rs 1,000 crore.
The guidance follows record quarterly earnings driven by higher production, lower costs, and a richer product mix, as per company leaders. Vedanta also urged retaining import duty on aluminium scrap to encourage domestic investment, though it expects minimal impact on its own operations. It has started exploration for critical minerals, including a monazite block in Uttar Pradesh that could yield neodymium by 2030-31.
The Indian Opinion
Vedanta’s debt reduction plan sounds ambitious, but the firm’s track record of leveraging makes investors wary. The narrative that a miner can slash Rs 20,000 crore in debt while pursuing a $10 billion Ebitda ignores volatile commodity prices and regulatory risks. A concrete test: can Vedanta maintain its Q1FY27 debt reduction pace for the rest of the year? The price of Brent crude and LME metals will answer that question.
Source: rediff.com
This story was synthesised by AI from the source linked above.
