Thank you, Sagar. Good evening, everyone, and welcome to the Q1 FY 2027 earnings call jointly hosted by Vedanta Limited, Vedanta Aluminium, Vedanta Iron and Steel, Vedanta Power, and Vedanta Oil and Gas.

On behalf of team Vedanta, I sincerely thank you all for joining us today. To provide a comprehensive and efficient update while making the best use of your time, we are hosting a combined call covering all five entities.

I trust you have had an opportunity to review the respective earnings presentations, press releases, and the detailed financial statements which have been filed with the stock exchanges and are also available on the website of each of the companies. Joining us on today's call are the CEOs and CFOs of each entity, who will discuss their operational and financial performance for the quarter.

In the sequence, we will begin with Vedanta Oil and Gas led by Mr. Jim Gable and Arpit Mundra, followed by Vedanta Power represented by Rajinder Ahuja and Pankaj Jha, Vedanta Iron and Steel led by Pankaj Sharma and Navin Jaju, Vedanta Aluminium represented by Rajesh Kumar and Anup Agarwal, and finally Vedanta Limited addressed by Mr.

Arun Misra and Ajay Goel. Following the update, we will open the floor for questions.

With that, let me hand over the call to Jim. Jim, over to you.

Thank you, Charanjit. Namaste.

We welcome you to the first quarterly Vedanta Oil and Gas results call as a newly listed company. Safety remains our number one priority, and while we continue to strengthen safety leadership, critical risk management, and frontline engagement, our safety performance shows that there is more work to do.

At the same time, we have made good progress across ESG. Higher commodity prices supported our Q1 performance, but our focus remains on safe operations, production delivery, cost discipline, and execution of our growth portfolio.

Our assets continue to demonstrate resilience whilst maintaining natural reservoir decline. Gross operated production averaged 77.7 thousand barrel of oil equivalent per day during the quarter, comprising 63.1 thousand barrel of oil equivalent per day from Rajasthan, 11.6 from offshore assets, and 3.1 from OLPs.

Working interest production averaged 51.1 thousand barrel of oil per day. In Rajasthan, production was supported by well productivity improvement programs, targeted well recovery, and continued operational optimization.

Offshore performance benefited from production optimization initiatives, including low-pressure operations and focused well interventions, while OLP production remained stable. Our priority remains to strengthen decline management, accelerate well interventions, improve execution, and maintain high asset reliability.

Over the last few years, we have delivered a positive change in our operating cost profile, particularly for mature tertiary recovery portfolio. The direct operating cost trend demonstrates that cost discipline has been sustained, with FY 2027 currently expected to be aligned with the FY 2026 levels.

These improvements have been driven by optimizing commodity consumption, especially through monitoring well patterns, and by maximizing well gains through targeted rigless interventions. These interventions are generally faster, lower cost, and more flexible than conventional workover activity.

The focus is to remain strong cost discipline while supporting safe operations, production reliability, and future volume delivery. Cost efficiency must therefore go hand in hand with execution and as well.

I will now hand over to Arpit, our CFO, for the financial update.

Thank you, Jim. Good evening, everyone.

On the financial front, let me highlight the key numbers for our performance in the Q1 FY '27. Our revenue stood at Rs 2,507 crore, which is 3% lower quarter-on-quarter basis, and EBITDA at Rs 1,232 crore, being 16% higher on quarter-on-quarter basis, resulting in an EBITDA margin of 49% for the current quarter.

Our unit operating cost for the period was $17.4 per barrel, down 3% quarter-on-quarter basis, despite the production decline and a lower base. The lower cost was driven by efficiencies and optimization in our workover and well intervention programs.

These initiatives reflect our intrinsic focus on cost leadership with persistent rigor while holistically supporting the reliability metrics. Our profit after tax before exceptional items from continuing operations stands at Rs 194 crore.

The exceptional cost net of tax is Rs 345 crore towards provision for impairment and one-off exceptional items during the quarter. The PAT from continuing operation hence stands at a negative Rs 151 crore.

Following the transfer of the non-oil and business undertaking that was earlier held in the erstwhile Malco Energy Limited, there has been a one-time profit from discontinued operations which stood at Rs 1,097 crore. Consequently, the reported PAT for the company, from continuing as well as discontinued operations, stands at Rs 945 crore.

Also, we are pleased to inform and share that we have been assigned a long-term credit rating of AA+ Stable by both CRISIL and ICRA during the recent months, which reaffirms company's strong credit profile and robust capability to meet its financial obligations. The rating further validates the company's continued resilient operational performance and positive growth outlook.

Let me cover some of the specifics on the EBITDA bridge. Quarter-on-quarter basis, our EBITDA is higher by 16%, which is supported mainly by the Brent prices, which was 15% higher quarter-on-quarter basis.

This was offset by lower volume due to the natural decline as one of the key reasons. While year-on-year, our EBITDA remains flat.

For the closing remarks, I now pass on to Jim. Over to you, Jim.

Thank you. Overall, the quarter has had a steady performance.

The company continues to focus on volume delivery, on capex projects, and infill, keeping our costs low, and building our exploration and development pipeline, all built on a strong foundation of safety and environment. Thank you.

I will now pass it to Mr. Rajinder Ahuja, CEO, Vedanta Power, for insights on the Q1 performance of power entity.

Thank you, Jim, and good evening, everyone. The quarter marks an important milestone in our journey with Vedanta Power becoming demerged entity effective 1st May 2026.

As a stand-alone power business, we now have a greater strategic focus, sharper accountability, and a stronger platform for long-term value creation in power sector. To give brief overview of power landscape, India recorded an all-time high power demand of 270 GW in May 2026.

To support this, Vedanta Power is India's fifth largest private thermal company with 4.2 GW current operating asset. It aims to reach at 4.8 GW by the end of this financial year.

Further, we are working on plans to add around another 7.2 GW starting from FY '28, FY '30 onwards, it will start getting kicked in. Fuel and volume security remains a key focus area for us.

Today, approximately 74% of our total volume is secured through medium and long-term PPAs, while 85% of our coal requirement is backed by long-term coal linkages/allocations, with strong stability and visibility of the revenues and costs. Coming to quarterly performance, Vedanta Power delivered a resilient operational performance.

During Q1 FY '27, we achieved sales of 5,224 million units, up 38% y-o-y basis, and revenue increasing 31% to Rs 2,607 crore. Meenakshi Energy delivered highest ever quarterly EBITDA of Rs 112 crore, backed by highest sales volume of around 1,350 million units.

Despite import coal prices increasing by over 50%, our team on ground had an exceptional work by containing the fuel cost by 12% on y-o-y basis. This was achieved by replacing the imported coal with Indian coal, and this time while we are talking, team was able to consume around 65% to 70% of Indian coal in their operations.

Our plan to achieve 100% domestic coal at Meenakshi remains on track, which will improve our cost competitiveness and margins way forward, further insulating us from the geopolitical risk. TSPL improved its plant availability to 86% from 77% on q-o-q basis, and achieved highest biomass cofiring of 7.9%, which is highest amongst the NCR region power plants.

The ash utilization remains 94% with increased ash sales revenue to Rs 9 crore. Jharsuguda maintained stable operational performance.

However, we received favorable regulatory outcome in short supply matter with potential refund of Rs 300 crore in days to come. Also, we have got positive order from State Regulatory Commission for recovery of ash cost by up to Rs 40 crore annually.

These positive outcomes are expected to support the future cash flows. At Shakti, despite the operation disruption, the team has demonstrated tremendous resilience, and we remain focused on restoring unit one and completion of unit two, which will be key for our gross capacity catalyst for the company.

We plan to start unit one by the end of Q2 FY '27, and unit one remains on track for completion by Q4 of FY '27. Parallelly, we have also notified our insurance providers for assessing the impact and the claims for unit one, which is duly covered for the losses through insurance.

Looking ahead, India's power demand outlook remains very strong, and Vedanta Power is well positioned to capitalize for future opportunities. With that, I now hand it over to our CFO, Mr.

Pankaj Jha, who will take you through the financial performance.

Thank you, and good evening, everyone. I will briefly cover the financial performance and capital structure highlights for Q1 FY '27.

During the quarter, Vedanta Power reported revenue of Rs 2,607 crore, 31% y-o-y growth on sales of 5,224 million units, which increased 38% y-o-y. While EBITDA for the quarter stood at Rs 291 crore, the overall performance was impacted by the Shakti boiler incident.

Nevertheless, the business demonstrated resilience through strong operational delivery and reported highest ever EBITDA at Meenakshi. PAT for the quarter was impacted due to one-time exceptional item of Rs 487 crore.

By neutralizing it, PAT before exceptional one-time impact is negative Rs 59 crore. Our balance sheet and credit profile continued to strengthen.

During the quarter, Indian rating agencies, ICRA and CRISIL, have upgraded our instruments. Our long-term rating remains strong at AA- with Stable outlook.

We have very healthy cash and cash equivalents of around Rs 1,130 crore. Net debt remained flat compared with the previous quarter, reflecting our continued focus on cash flow management and deleveraging.

We also successfully raised commercial paper at 8.25%, demonstrating continued lender and investor confidence in the business. Going forward, our capital allocation priorities remain clear: maintaining liquidity, reducing leverage, enhancing fuel security, and completing our key growth projects, particularly Shakti unit one restoration and unit two project.

These assets are expected to materially strengthen earnings, cash generation, and return metrics over next two to four quarters. With a stronger credit profile, improving operational performance, and clear growth visibility, we believe Vedanta Power is well positioned to deliver sustainable value creation for all stakeholders.

I now hand over to Mr. Pankaj Sharma for covering Iron and Steel.

Thank you, Pankaj, and good evening, everyone. Let me take you through the performance for the first quarter of FY 2027 for Vedanta Iron and Steel.

Vedanta Iron and Steel operates fully integrated business model supported by strategically located mining assets in Odisha, Goa, Karnataka, Liberia, and downstream steel operations in Goa and Bokaro. This enables value creation across the entire value chain.

During the first quarter, we have delivered a strong operational and financial performance, with revenue increase of 18% year-on-year and EBITDA growth of 54%. Margin expanded from 11% to 14%, and PAT stood at Rs 121 crore.

During the period, steel and iron ore production increased by 4% year-on-year, supported by stable and safe operations and enhanced efficiencies. In steel business, saleable production stood at 582 kt with robust EBITDA margin of 12%.

This was driven by better realization, a favorable export market, and continued cost and operational initiatives. In iron ore business, production increased by 4% year-on-year to 2.6 million tonnes, and EBITDA margin improved by 24% year-on-year on the back of better realization and cost efficiencies.

Sequentially, the volumes were moderated by seasonal impact during later part of the quarter. On quarter-on-quarter basis, margin lowered due to higher discounts on low-grade ore and elevated ocean freight cost.

On the growth front, our expansion projects continue to progress as planned. During the quarter, we received stage one forest clearance for Bokaro expansion project.

We remain on track to deliver the project by end of financial year. The ductile iron pipe project in Goa is progressing well and is expected to be completed during the later part of the year.

I'll now hand over to my CFO, Navin, to take you through the financial performance.

Thank you, Pankaj. Good day, everyone.

During the quarter, revenue stood at Rs 3,662 crore, an 18% increase year-on-year, and EBITDA of Rs 515 crore, a 54% increase year-on-year. This was on the back of strong operational performance and better realization.

The company continues to maintain a strong balance sheet with net debt to EBITDA ratio 1.3x and return on capital employed of 16%. This is also reflected in the credit rating of AA Stable by CRISIL.

Net debt post-demerger adjustments stood at Rs 2,733 crore as on June 2026. Strong operating cash flows helped fund pre-monsoon working capital requirements and ongoing growth projects.

Back to you, Pankaj. Yeah.

In conclusion, we have delivered a strong start to FY '27 with resilient operational performance, improved profitability, and disciplined balance sheet management. Our ongoing growth projects, expanding mining capacities, and integrated business model position us well to capitalize on India's long-term steel and iron ore growth opportunity.

We remain focused on creating sustainable value for all stakeholders through operational excellence, responsible growth, and disciplined capital allocation. Thank you.

Thank you very much. With this, I hand over to Rajesh, CEO, Aluminium.

Thank you, Pankaj. Very good evening, everyone.

Thank you for joining the Vedanta Aluminium Metal Limited earnings update. VAML delivered a strong quarter driven by industry leading safety, sustainability, and operational performance.

During the quarter, we had only one lost time injury. Environment performance remained robust, with 20% ash utilization contributing to increase dike space, while our newly commissioned RO facility improved the waste water recycling and reduced fresh water consumption by 8%.

Renewable energy supply from Serentica increased to 198 MW, a 60% sequential growth, and we remain on track to achieve more than 371 MW of green power by the end of this financial year. VAML delivered a record quarterly performance, achieving all-time high aluminium production of 632 kt, up 5% year-on-year and 3% quarter-on-quarter.

Alumina production was 826 kt, up 41% year-on-year. Alumina production was, however, 6% lower than the previous quarter due to stabilization issues in the power plant, red mud filtration, and bauxite handling.

Value-added product output rose to a record 389,000 tonnes in the quarter, up 14% year-on-year, reflecting the continued shift in our product mix towards our goal of 90% share of value-added products. The billet production increased by 18% and the alloy production increased by 38% with respect to the previous quarter.

From a market perspective, global aluminium prices have remained buoyant, supported by supply side constraints. Looking ahead, our focus remains on accelerating growth through ramp-up of Lanjigarh and increased volume from BALCO potline 3, and sustained cost optimization through additional domestic bauxite.

Our captive coal, we have received the mining lease and mine opening permission for Kuraloi, and we plan to start the mine in this quarter. Supported by a strong execution discipline, we remain well positioned to deliver a long-term value for all our stakeholders.

Thank you, and with this, I hand over to our CFO, VAML, Mr. Anup Agarwal, to take you through the financial performance.

Thank you, Rajesh ji, and good evening, everyone. We closed Q1 FY '27 on a strong note, marking an important milestone for Vedanta Aluminium as our first quarter post-demerger.

At a headline level, we delivered an all-time high revenue and EBITDA on the back of strong realizations, disciplined cost management, and continued operational execution. Revenue for the quarter stood at a record Rs 21,105 crore, reflecting a 45% increase y-o-y and a 13% increase quarter-on-quarter.

On the cost side, our hot metal cost in Q1 FY '27 stood at $1,698 per tonne, lower by 4% y-o-y and lower by 3% quarter-on-quarter, despite inflationary pressures due to the Middle East disruptions. This is within our guidance range as communicated earlier.

Coming to EBITDA, EBITDA was at Rs 10,499 crore, up 134% y-o-y and up 24% quarter-on-quarter. Sequentially, EBITDA per tonne expanded from $1,511 per tonne to $1,804 per tonne.

This was driven by a combination of volume growth, cost optimization, marketing initiatives, and favorable market conditions. The profit after tax was at Rs 6,597 crore, up over 200% y-o-y.

Our return on capital employed stood at 42% at the end of Q1, reflecting our focus on driving profitable growth while maintaining disciplined capital allocation. During the quarter, our balance sheet became even more stronger.

Our net debt to EBITDA ratio improved from 1.3x to 0.9x. Our cost of borrowing is now at sub-9%, and this will improve further in the coming months.

We closed the quarter with a cash and cash equivalent of over Rs 6,000 crore. This provides us with a strong liquidity cushion and enhances our financial flexibility.

The board has approved an interim dividend of Rs 8 per share this quarter, the very first for Vedanta Aluminium. Both CRISIL and ICRA have upgraded Vedanta Aluminium to AA+ with a Stable outlook.

This is an important validation of the market's confidence in our balance sheet strength, earnings resilience, and financial discipline. Our guidance on the cost for full year remains unchanged at $1,650 to $1,700 per tonne.

Going in quarter two, the cost may be marginally higher due to the planned power plant shutdowns timed with the monsoon period. On the hedging front, for the balance year, we have hedged 28% of our volumes at an average of $3,062 per tonne.

We are confident that our EBITDA run rate will remain resilient across commodity cycles, driven by higher volume from BALCO expansion, increased value-added product and domestic market penetration, and continued cost reduction through backward integration. Thank you, and with this, I hand over to Mr.

Arun Misra for an update on demerged Vedanta.

Thank you, Anup. Good evening, everyone.

As you will all know that this quarter marks the first reporting period of demerged Vedanta, India's most diversified base metals and specialty alloy company, providing investors with exposure to zinc, copper, silver, lead, manganese, nickel, and ferrochrome. I'm pleased to note that in the maiden quarter since demerger, we have delivered EBITDA of Rs 8,459 crore and PAT of Rs 5,294 crore for the continuing business.

Let me now walk you through the operational performance of the key business segments. At Zinc India, refined metal production grew 4% year-on-year to 260,000 tonnes.

We achieved lowest ever cost of production at $851 per tonne. Silver continues to contribute strongly to our bottom line with 46% share of EBITDA.

At Zinc International, overall mined metal production was 48,000 tonnes, including contribution of 3,000 tonnes from Black Mountain Mine. Gamsberg phase one production rose 10% sequentially to 45,000 tonnes.

Gamsberg cost of production also declined to $1,549 per tonne, down 7% quarter-on-quarter, delivering an EBITDA per tonne of $900. At BMM, Swartberg mine end-to-end contract in lieu of deep substitution has been completed and ramping up on variable cost model.

In ferrochrome business, FACOR delivered its highest ever quarterly ore production, up 41% year-on-year to 153,000 tonnes, surpassing previous best of 113,000 tonnes in quarter four '26. Improvement in finished goods grade supported by higher market price resulted in 2% higher net sales realization, alongside lower cost driven by 100% captive ore availability.

This resulted in EBITDA margin improving from $360 per tonne, up 13% sequentially, also delivering the best ever quarterly EBITDA of Rs 101 crore. Copper India recorded sales of 53,000 tonnes, up 3% year-on-year, our highest first quarter sales in eight years.

At Copper International business, rod sales were down 51% year-on-year as the supply chain in the entire Middle East region was impacted due to geopolitical tensions. Moving to growth projects across the four segments, at Zinc India, for the fertilizer plant, cold commissioning has been initiated.

The hot acid leaching plant at Dariba is also targeted for commissioning in the current quarter. The 10 million tonne per annum tailing reprocessing plant is under construction and is expected to be completed by quarter four of FY 2028, while the 250,000 tonnes per annum expansion project of smelter is expected to commission by quarter two of FY 2029.

At Zinc International, Gamsberg phase two plant is likely to commence operations in August. It will add another 200,000 tonnes of MIC capacity, taking the total capacity to 450,000 tonnes per annum.

At FACOR, production from Ostapal underground mine is likely to commence in the current quarter, yielding better Fe grade and metallic volume. We received forest clearance stage one for Kathpal manganese mine and is expected to start operations in H2 of this financial year.

At Copper India, phase one debottlenecking has augmented installed capacity to 222,000 tonnes per annum. Further debottlenecking will take this capacity to 229,000 tonnes per annum.

Copper International, at our Jabal Sayid exploration block in Saudi Arabia, exploration partner has been finalized, targeting 24 months for the initial phase. To summarize, performance of continuing businesses demerged Vedanta is on a steady growth trajectory, as reflected by a strong quarter one delivery and project commissioning lined up during the year.

We remain focused in our pursuit of growth on the demerged Vedanta to a $5 billion EBITDA enterprise by FY '30. With that, let me hand it over to Ajay to take you through the financial performance in detail, after which we'll be happy to take your questions.

Ajay?

Thank you, Arun. Good evening, everyone.

We are meeting today for the first quarterly results after Vedanta's historic demerger, and that is unlocking significant value, with the combined market cap of resulting five companies growing over Rs 71,000 crore in Q1 itself. I want to also clarify that as the demerger became effective during the quarter on 1st of May, the reported include one month of discontinued operations as per the Ind AS 105.

For the sake of like-for-like comparison, we will focus on performance of Vedanta's continuing operations, which is for the entire quarter, April to June. Numbers are comparable and they are for entire quarter, April through June.

I'll start briefly with Vedanta highlights. On Vedanta Limited's full performance, revenue increased by 51% y-o-y to Rs 23,456 crore.

EBITDA nearly doubled, rising by 90% y-o-y to highest ever Rs 8,459 crore, with a margin of 57%, up 985 basis points y-o-y. Profit after tax, PAT, grew to Rs 5,294 crore, up 152% y-o-y, again, highest ever on a like-to-like basis.

In Q1, Vedanta invested Rs 1,148 crore in growth capex, while deleveraging the balance sheet by more than Rs 2,220 crore, at the same time delivering a strong ROCE of 28%. In Q1, Vedanta's balance sheet remains exceptionally strong, with leverage ratio, net debt to EBITDA, down to 0.3x, amongst the best in the industry.

Vedanta Limited has been rated AA+ with a Stable outlook both by ICRA and CRISIL, highest rating over a decade for us. With strong cash and cash equivalent of Rs 19,922 crore, remains resilient at the same time growth-focused.

I'll move on very briefly to Vedanta Resources, the VRL highlights. VRL's credit strength is well recognized with rating upgrades from all three agencies: S&P, Fitch, and Moody's, rating VRL to B- or B- equivalent, again representing a decade-high rating for VRL.

The demerger, as we earlier envisioned, has significantly enhanced strategic optionalities available for Vedanta Resources. You may have made a note that during the quarter, we have sold 1.7% stake in Vedanta Limited, that is almost $200 million, and that illustrates the range of strategic levers to accelerate for fast-track debt thrust at Vedanta Resources.

VRL deleveraged by $1.1 billion across the group in Q1 itself. In this quarter, through a broader $5 billion refinancing program at Vedanta Resources, we are targeting reduction of around 280 basis points in average funding costs at Vedanta Resources.

This will lead to more than Rs 1,000 crore of interest cost savings on a yearly basis. We have recently raised $1.7 billion from international bond markets at average 7.4% coupon rate and average maturity of 8.5 years, and additionally tied up a syndicated term loan of up to $2.25 billion at 6.4% interest rate with average maturity of 3 years.

Overall, this would significantly flatten VRL's repayment profile, and that can be serviced through regular brand fee and normal dividend receipts. In conclusion, the demerger has laid the foundation for next phase of growth, backed by strong VRL balance sheet, focused businesses, and strict allocation of capital.

With this, I now hand over to operator for Q&A.

Hi. Can you hear me?

Hello?

Yes, okay.

My first question is on EBITDA for the VAML. When I try to add the EBITDA given in the slides for Jharsuguda and BALCO, the total EBITDA comes at close to Rs 10,527 crore, while total reported EBITDA, as you mentioned, is Rs 10,499 crore.

Can you explain the difference?

That's a small console adjustment actually. The difference that you are talking about, no, it gets eliminated later on the transactions between BALCO and VAML.

Okay. This is something intercompany kind of, is it?

Yes, absolutely. Yes.

Okay. My second question is on the aluminium sales made this quarter.

I appreciate that you have given the aluminium production for the quarter, but earlier you used to give the sales number as well, which is not mentioned in this slide. If you can provide that number as well, that would be great.

The sales number for the quarter is at 615 kt.

615 kt. Thanks for that.

That is from my end.

Hi. Thank you for the chance.

A few questions. First, let's start with aluminium business.

Our ask rate for alumina production for the last three quarters is almost 1.1 million tonnes. To achieve the 4.1 odd million tonnes for the full year, how should we look at that trajectory?

Will it be more second half heavy? Given the exit run rate of 1Q and what we are doing in July so far, are we confident of achieving that number?

Yeah. Typically, the monsoon months both for the power assets as well as the alumina production are slightly difficult months.

We expect a much higher volume in the H2. If you would have noticed, even the last year, the trends were similar.

This year also, we will follow the same trajectory, and we will meet the estimate which we have given of 4 to 4.1 million tonnes of alumina production from Lanjigarh.

Sure. Secondly, on purchased alumina cost, despite sequential basis alumina COP going up and alumina integration going down, your alumina cost in aluminium has gone down.

What has been the delta in purchased alumina cost in this quarter? What you have booked in P&L?

Indrajit, on a broad level, no, as you have rightly said, alumina cost has come down 3% quarter-on-quarter. If you would recall, now even in the last earnings call, we very clearly articulated that but for the higher LME and the higher API, as we go into the quarter, as we go into the second quarter of this financial year, no, we will start seeing alumina cost closer to $750.

Okay. Now $780 is what we've reported in quarter one.

Now with increased mix, and you would have seen that we have we have done around 70%, 72% in quarter one. With the same captive mix in quarter two and a lower API, we are en route to that $750 number, what we talked.

Indrajit.

Is there further room for API prices to go down in the subsequent quarters or we have already bottomed out over there?

I can tell you, see, the further reduction will again come as we ramp up Lanjigarh production. Because going forward, no, our captive mix will keep going up and the bought-out alumina will keep coming down, Indrajit.

Any reduction from here towards 700, we will have to look at Lanjigarh ramping up and of course, some of our captive bauxite coming into the play.

Sure. In 1Q, what was the hedged volume and price at which we had hedged?

Quarter one, we had hedged around 293 kt and the strike price was $2,815.

Sure. One last question to Ajay, if I may.

Given the high capex or the growth projects at Vedanta demerged entity, can we assume that most of the dividend would now be from Vedanta Aluminium of the five entities in terms of quantum, let's say, rupees crore or dollar quantum?

Indrajit, if you look at historically, Vedanta's dividend yield has been quite high, in fact, double-digit, 12%, 13%, and over the last couple of years, down to 6%, 7% each point. Our last commitment was to go down to normalized yield of almost 5%.

That on the combined market capitalization may be $1.5 billion payout on a console basis of all the five business units. Now as you appreciate, Indrajit, dividends will be a board matter.

One way to model this, look at the combined market capitalization of each business and look at 4% to 5% dividend yield. You're right.

Vedanta Aluminium, being almost at about $18, $20 billion, about 35%, practically one may also assume half the dividend will come from Vedanta Aluminium going forward.

Sure. Thank you.

I have more questions. I'll join back.

Thank you.

Thank you. The next question comes from the line of Sumangal Nevatia with Kotak Securities.

Please go ahead.

Good evening, and thanks for the chance. First question is to Ajay on the overall capital allocation.

One is, at the VRL level, can we assume that a large part of deleveraging is behind now given that we've refinanced and going forward the focus would be more on growth or are we expecting further deleveraging from $4.5 billion debt? One is that.

Then at VAML, just want to understand what sort of debt or leverage we are comfortable beyond which we will consider paying dividend. The Chairman has spoken about expansion plans.

At what stage do we start spending towards the next phase of expansion, by which we should expect some lower dividends and deleveraging?

Sure, Sumangal. I'll start with the first part of course.

You're right that at VRL, the deleveraging has been accomplished to a large extent. Over the last three-odd years, net of $10 billion down to $5 billion as of June 30.

Going forward, what is the path forward, what we have last time committed, that the VRL debt comes down from $5 billion down to $3 billion. We also committed that Vedanta India, in a combined basis pre-demerger, our leverage of 0.9x as of March will be coming down to 0.7 as on coming March on a console basis.

Now when we look at capital allocation policy, the central theme is allocation and not capital necessity. We don't provide guidance in terms of EBITDA, but if one has to model looking at the current run rate, with the current volume, cost, and profitability, and our macro tailwinds in terms of currency and the pricing, the outlook for the EBITDA for Vedanta India on a console basis is at about $9.5 to $10 billion.

Our EBITDA to cash conversion is typically 50%. That means we'll be having total free cash flow of roughly $5 billion, Rs 45,000 crore at Vedanta India on a console basis.

We don't have to make choices between growth and deleveraging. Going forward, what we're looking at, we will be keep investing for the growth in the current year at about Rs 20,000 crore with the capex across the five entities.

We're looking at deleveraging at VRL level, roughly $2, $2.5 billion, again Rs 20,000 crore. At the same time, we'll also be rewarding shareholders through dividend.

Eventually, growth, deleveraging, and rewarding shareholders should lead to TSR. In summary, Sumangal, we don't have to make choices between investing for the growth or deleveraging.

Both in the current year can coexist given robust free cash flows.

Also, Ajay, I think, Sumangal, just to add, last three years of deleveraging has not caused, unlike other companies, any postponement of a declared capex or any intentional slowdown of a capex project that has been announced in the market. Rather, in last three years of deleveraging, we have initiated much bigger project without things like expansion of a million tonne expansion in Zinc, Aluminium, completing the BALCO project, ESL Bokaro completing that 2 million tonne expansion project or keep on working on 2 million tonne expansion project, all these Gamsberg phase two, all these happened in last three years.

I think these two are, as Ajay correctly said, it is not one or the other, it is one and the other.

Yes. That's very clear.

If you can just share some more thoughts on VAML balance sheet and debt levels which we are comfortable and some expansion plans going forward.

I'll hand over to Mr. Anup Agarwal.

See, if we look at our financials, no, as at end of June, the net debt in our books is around 33,000. Okay.

Now, for the growth that is undertaking or we're invested in, we have a capex left of around Rs 7,000-8,000 crore, which will be spending in, say, 18 to 24 months. That includes BALCO, some leftover Lanjigarh augmentation, and the mines project.

Now coming to the new expansion, 3 MTPA, presently, we explained last time also, as of now we are on a drawing board. We are in the process of land acquisition, finalizing the technology partners and the packages.

As and when we will have details, we will come to the board. Today, if you ask me, the net debt stands at Rs 29,500 crore.

The leftover capex to be spent on the growth already announced is around Rs 7,000-8,000 crore including BALCO. That's it.

What would be the total capex for '27 and '28? Rs 7,000-8,000 crore and plus some maintenance, right?

Yes, broadly, yes. For this year, it will be around Rs 5,000 crore plus another, say, Rs 2,000 crore of maintenance.

Understood. Is it safe to assume that the next phase of growth, at least since the plans are not yet firmed up, will start towards the end of '28 capex and or maybe in '29 only?

As I said, Sumangal, maybe in a quarter or two, now we will come back to the market with further details.

Understood. I have couple of more questions.

One on VISL. I just want to understand what are the next key hurdles and milestones we are looking at for starting or completing the expansion of Bokaro phase two?

Navin, Pankaj, over to you. Yeah.

For ESL, I will say that in this quarter, we have received the stage one forest clearance. We are in the process of getting stage two, and we are expecting by end of quarter two, we will be completing that clearance.

By end of this financial year, we will be able to complete the expansion project.

Understood. Just one last question on aluminium again, sorry.

What is the difference of delivered price of bought-out alumina versus captive? With Sijimali coming in, what sort of cost saving do we expect purely from the captive bauxite mine?

See, broadly at today's API, no, and assuming that this Middle East prices will normally bottom out or will even out, the difference will be to the tune of $50, $60 when you will look at the mix, captive alumina versus the bought-out alumina. Now this captive alumina also has 50% of the imported bauxite.

To address your question that once Sijimali starts ramping up, we can expect, say, another $40 to $50 per tonne reduction. It will all depend on what percentage of Sijimali we will be able to ramp up and how soon we will be able to ramp up.

The idea is to start it after monsoon. This year we're expecting 1 to 2 million tonnes and next year, it can be between 6 to 7 million tonnes.

Okay. Got it.

So $40 to $50 at the alumina level, right?

Yes. All numbers I spoke was on the alumina level.

Understood. Sir, but we've just got stage two forest clearance EC, I think mining lease and then consent to operate, all these approvals can come within the next couple of months and we can start production by fourth quarter?

Is that a realistic expectation?

Given the current scenario, yes, we expect we have made good progress in the last quarter in terms of getting up to FC2. Now our efforts are on, we are working very closely with the government.

This is how we look very positive. The government is also very positive in terms of investments in the state.

We are quite hopeful that this is what will happen.

Understood. Just one last clarification.

All these mines is under VAL. What is the transfer pricing to BALCO?

Is it fair to assume then all the cost saving, etc., will be reflecting more under VAL than BALCO?

The transfer is at arm's length and we are governed by that as regards transfer from the Lanjigarh to BALCO is concerned. See, just to clarify, now when you're talking about the mines, no, BALCO also has one mine by the name of Barra.

The coal will come from there. Rest all mines are with VAML, which will be used for VAML's own use.

Coming to bauxite, then the idea is to take it to Lanjigarh, and what Rajesh ji said that any alumina from Lanjigarh to BALCO is today also at arm's length basis.

Sumangal, thank you. We have a very long queue of people in the queue for questions.

Operator, you can move to the next. Yeah.

Thanks, and all the best.

You can move to the next person in the queue.

Just one question. If I look into your oil and gas numbers, my oil price has gone up by around 30%.

My production is down by around 4% to 5%. Still my revenue has remained flat q-o-q, and my EBITDA is also up Rs 200 crore only because of this increase in stock, whereas my opex, etc., everything has remained same.

Can you just give an explanation for this, why it has remained largely flat q-o-q?

Hi, this is Arpit here. I'm the CFO for the oil and gas business.

If you see quarter-on-quarter, given the cyclic nature of our sales pattern, about 85% is the volume that we have sold, and post-monsoon this will get equated. That's the typical sales pattern that we have.

Got it. The production and sales number have got a deviation due to which the numbers are like this.

Got it,

yeah.

Thank you so much.

Hi. Good evening, all.

Just on the hot metal cost, this quarter I think it's gone down a bit. Just wanted to understand one, given the inflation that we were seeing generally speaking on fuel cost and power cost in the quarter, what were the factors that helped reduce the hot metal cost for you?

Secondly, what will be the outlook for the cost going ahead?

Hello.

Hi, Amit. Rajesh.

See, I already covered. Now let me first cover for the quarter two.

We expect the cost to be marginally higher, and we said that because of the plant shutdowns, and you would recall that during the monsoon period, no, there are normally some power plant shutdown. The cost will be marginal.

Now coming to the quarter-on-quarter, see, the cost has come down due to increased captive consumption of alumina, the lower coal price per se, and of course, if it is because we are talking dollar, you can also say that little bit of a rupee cost divided by dollar is also there. Why I'm saying this is because, as you would recall, last quarter also we said that post this Middle East disruptions, no, we have been hit by the carbon cost and the furnace oil cost.

On a net-to-net basis, no, if you look at our guidance, what did we say? $1,650 to $1,700, and additional $50 to $100 for the Middle East disruptions.

We are very much there in the target. As I stated in my commentary also, that we will be within our guidance of $1,650 to $1,700 as we complete the year.

Sure, understood. Just a comment if you could give on the lower sales volume.

While production, as you mentioned, is the highest ever, the sales volume has not inched up in the quarter. Why was this inventory build-up there in Q1?

See, Amit, see, what happens, no, normally at the fourth quarter of the end quarter, no, there is a tendency to clean up the stock. To that extent, if you will see, some 7, 8 kt has been added.

Otherwise, there has been no no addition to the inventory. Because because normally in the quarter in the year-end, no, there is a tendency that we wipe off the inventory lying at the stock and everywhere.

Okay. Understood.

Thank you. That's it from me.

Thank you. Yes,

Yes. Can you hear me?

Am I audible?

Yeah. Can you first, sir, walk us through the Sijimali bauxite mine process?

There was a stage two forest clearance. What are the approvals from here?

What are the timelines you're expecting to get us an idea of when can we actually start mining and where are the approvals required at national, state, and other agency level?

We finally have to get the consent to operate. We are in the process of getting that.

We expect that to happen in this quarter. As mentioned, after this quarter, monsoon and rain, we plan to start the mine.

Okay. Just to be clear, the consent to operate is the only approval required, and after that, you can start mining?

Yes.

Understood. Taking forward the process from regulatory to actual mining, right?

What are the activities on the ground? Because I assume this is a virgin mine, you would have to overburden removal, the preparation of roads and everything.

How long the process do you see of work on the ground before you can scale up to, let's say, 4 to 5 million tonnes of bauxite mining?

Compared to coal, bauxite is slightly easier to mine, and very little overburden and these things are required. In addition to that, we operate through MDO partners, sir, who do the mining for us and deliver the ore.

We have already appointed the MDO partner for Sijimali. We are ready.

In fact, the preparation was done at the beginning of the year itself, as far as the mining activity is concerned. As soon as we get the approval, the mining can start.

Got it. My last question is on coal.

Given that the mining operation permission has been obtained at the Kuraloi coal mine, what is the mine volume that you expect in FY '28 and '29? Secondly, if you were to draw a similar parallel for the Ghogharpalli mine, what kind of coal production can we expect over the next two years, '28 and '29?

We expect from Kuraloi this financial year to mine up to 2 million tonnes. Ghogharpalli, abhi we are just evaluating.

This year, I think we will wait when we start the work to estimate.

Kuraloi, it can increase to how much from 2 to next year?

8 million tonnes.

You are confident that it can go to 8 million tonnes next year if you start this year?

This year 2 and next year 8 is our current plan.

Got it. Thank you very much, sir.

Hi, sir. Thanks for the opportunity.

Sir, first question on aluminium, can you help us with the hedges for the balance three quarters by volume and price by quarter, if possible?

See, Ritesh, as I said, no, for the balance three quarters, we are hedged about 28% at an average price of $3,062. If you're specifically asking about Q2, then we are hedged about 270 kt and the strike price is $2,830.

270 kt at $2,830, right?

Yes.

That helps. Sir, second, I just wanted to check on Saudi asset.

Have we firmed up the capex, because I think you did indicate that exploration partner has been finalized. How should we look at the incremental progress over there and the timelines?

Arun ji?

As of now, we are on the exploration partner finalization, and after that only, we'll come back and inform you regarding the capex approval for that.

Sure. My third question was on bauxite mix, going back to aluminium.

It has reduced from 66% to 46%. Just wanted to understand on an absolute tonnage standpoint, how much are we procuring from OMC right now?

What is the corresponding price? Outside of OMC, what's the average price that we are looking at?

Just trying to do the math that once Sijimali comes through, how the economics can change. See,

Ritesh, I'll give you some broad numbers. Okay.

Now domestic, as you rightly said, we are doing about 46% to 50% to 50% of the alumina that we produce. Now if you look at the alumina cost from the domestic bauxite, because OMC or broadly the other bauxite also that we pick up are more or less at the same price.

We make the alumina at a cost of around $300. Sijimali also, when we begin, we expect that the cost will be at a similar level.

Right. Would it be possible for you to quantify how much is the procurement rate from OMC right now, and has the number changed over the last 3, 4 years?

Ritesh, you are aware that this matter is sub judice. That is where I did not want to indicate the number, because we're aware that we're getting this under the court order as of now.

Fair enough. Last question, I think probably Ajay ji can look at.

Any particular reason why we are not indicating payout policy for all the companies, though you have indicated pretty good commentary for all the five entities together. Any timelines over there?

Secondly, there is an ICD of Rs 960 crore at VISL. How should we look into that?

Ritesh, in terms of the payout, you essentially mean dividend payout, isn't it?

That's right. You may have seen

in the last board meeting, post the demerger, and all the new four companies also have adopted their own policy on payout dividend. The key change, Ritesh, in the past, our policy was slightly more directive.

It was prescriptive, for example, a payout of 30% of the PAT or passing on dividend within some time frame. Post-demerger, the key change, Ritesh, the policy has changed from being a prescriptive to more descriptive.

In that case, Ritesh, all the four of these board will have a far bigger flexibility. Depending upon need for the capexes, in terms of profit plowback and the payout, they can decide.

Having said that, all the four companies are also cut from the same cloth. The Vedanta overall group philosophy continues.

What we earlier committed that for the parent company, debt will go down from current $5 billion down to $3 billion over two years. Overall, Vedanta India leverage from 0.9x will go down to 0.7.

In summary, overall, one can safely model that 4% to 5% dividend yield on each company's market capitalization is a number what we are targeting for the group.

Sure. Sir, on ICD?

Ritesh, can you repeat the question?

Sir, VISL has an ICD of Rs 960 crore. I just wanted to understand where is it heading to, and what's the interest cost over there?

This number was Rs 9,434 crore on March 26. I think it would be because of the demerger.

That number is reduced to 960. That's

right. Navin, can you take this?

Sure. Thanks.

Ritesh, as a part of demerger restructuring, there was a waiver of intercompany loans and related interest to the tune of close to Rs 13,000 crore. This is the amount which is there in the VISL books after the entire restructuring which was completed.

Sorry, I could not comprehend, actually. Could you please come again?

The sum was Rs 13,000 crore. This was waiver of intercompany loans and?

Out of Rs 13,000 crore total Rs 14,000 crore, Rs 13,000 crore had been waived off, the intercompany loans, and Rs 960 crore stays in the books, which is payable as a part of the restructuring.

This is to VRL?

This is to Vedanta Limited.

This is to Vedanta Limited. Fine.

Lastly, would you like to comment on the real estate value unlocking? The PPT mentions about Rs 30,000 crore plus.

How should one understand, appreciate that?

Ritesh, at a thematic level, Ritesh, this is the beginning, right? Not the conclusion.

In fact, demerger lead to many more restructuring possible. What we are trying to do, and right now, we are looking at multiple assets on Vedanta's balance sheet, and they are industrial lands, at the same time, properties at the posh location.

In Vedanta alone, as in Vedanta in the standalone, we've got more than 2,000 acres of land. The intention is to demerge those real estate into a pure-play company, and that can again lead to significant value unlock.

The number of Rs 30,000 crore or $3 billion right now is more aspirational. The whole demerger, if you also look at in Vedanta's experience, the Vedanta's demerger was far more complex.

It took us two years' time. Typically in the Indian NCLT bounds, anything between 9 to 12 months is the time frame.

The entire demerger of real estate also will undergo the same kind of rhythm. It is almost a year from now.

Our intention remains, across the group, entire real estate which is additional, not required for the business, will be demerged into a company, and we intend to foray in that business. If you look around in large industrial house, and you can find them are on the same path.

Sure. This was helpful.

Thank you so much. All the very best.

Thank you, Ritesh.

Thank you for taking my question. This is regarding Vedanta Power.

If you can give us some understanding regarding the regulatory approvals required for the restart of Shakti energy plant in terms of what are the bottlenecks there, and also if the contractors are already working on the site, or work is dependent upon the regulatory approvals getting received?

If I could understand your question right, the plant is already under revival. The contractor is already working from almost a month on the revival, and 26% of the revival has already been completed.

We are expecting to start the unit by end of September or 1st week of October, that's the plan. As such, there is no hurdle.

We are seeing at this moment.

Okay. Do you need any statutory approvals for this even from the district magistrate or any such approvals?

We have already intimated all the authorities before start of work, and the major approval generally is required from the boiler inspector and electrical inspector, all have been intimated before start of work. They are also coming and doing the stage inspection.

Finally, once the boiler is ready for starting, there will be a natural visit by the boiler inspector for certifying the fitness, and then the plant can be started. As such, there is no hurdle.

Understood. For the unit two, also if you can give us some more color in terms of what percentage of completion, what is done, and how the work is progressing there?

It is going as per plan. We want to complete all the activities related to unit two by end of this year, and that's where we are as of now.

We're not seeing any issue further.

Understood. For the PPAs, for what has been left out in terms of capacity, what PPAs are available, and how are you approaching that?

We commissioned 700 MW at Meenakshi and 600 MW last year at Athena, right? Out of this 1,300 MW, we already have tied up 500 MW with Tamil Nadu.

Recently we have also got one-year contract with Kerala, which is taking the total capacity tied up to 600 out of these two the plants. We are not very much behind clocking PPAs at any rate.

If you look at what we tied up with Tamil Nadu for 5 years, was one of the best rate available among all the PPAs that were tied up last year. Now when we are tying up for Kerala one year, that also is at a respectable rate of Rs 5 96 97 paisa.

We are very sticky and choosy because Indian power demand is growing, and so the market rates are. If you look the difference between last year's average versus this year's average, you already see a difference of around Rs 1 average.

I think it's a good opportunity for us, but we are only looking at only opportunity very carefully because we want to tie up at a respectable rate only. I am very hopeful that eventually this year also we should tie up some capacity, 50 to 100 MW, at a right rate.

Understood, sir. All the best.

Thank you.

Thank you.

Hi. Thank you for the opportunity.

My first question is for Vedanta Aluminium. Sir, what's your view on a listing on the long term?

Firstly, you have given guidance on how second quarter and these couple of quarters will be. Going ahead for the next couple of years, what are the key cost saving and operational efficiency measures that you're taking, and if you can just quantify how much value-accretive they will be, that would be great, sir.

Yeah. Rajesh, let me take this question.

See, we spoke about the hot metal cost of $1,700 per tonne in this quarter. Okay.

From here Sorry? Am I audible?

Yes, you are audible.

On the cost, if you look at, say, 3, 4 quarters down the line, we expect the cost to go down. The voice is echoing from somewhere, I think.

My line is on mute only.

No problem. I was saying that in, say, 3, 4 quarters, now when you look at the cost, say, from $1,700 today, we expect a reduction of $175 to $200.

The areas from where this savings will come, one, as and when the Lanjigarh ramps up. Today, we are doing about 70%, 72%.

With Lanjigarh ramping up to 5 million tonnes, we will be closer to 90%. That's one.

Second, we spoke about Sijimali and the captive bauxite, how once it ramps up and the cost benefits. The third is, once we have say Ghogharpalli coming into the play, we will start getting the advantages on coal.

If I were to specify a number, say, on $175 saving, 70 to 70% of it will be alumina plus bauxite, and the balance will be the coal. We expect, in say 2 to 3 to 4 quarters, we should start realizing those savings.

Thank you for this, sir. Sir, my second question, again a little long-term in nature.

BALCO has already become net cash, and given the run rate of the EBITDA, there is massive deleveraging potential at Vedanta Aluminium as well. In line with that, sir, I know you have answered it on a group level, but what is the capital allocation policies that you will be following at Vedanta Aluminium?

If you can just quantify what will be this year and next year capex at both Vedanta Aluminium and BALCO separately, sir? See,

yes, you are right. Ajay actually elaborated it in details.

I'll not get into that because you mentioned it. Now coming to the capex, no, as I said, for the year as a whole, FY 2027, okay, we expect the capex to be around Rs 5,000 crore for this year, 2 2.5 2 to 2.5 thousand will be BALCO and the rest will be VAML.

Next year also, maybe the capex can be around 3.5 to 4,000 because BALCO will be done and we will be left with only the mines capex.

Sir, is it safe to say that for next couple of years, the

Here we have not included what is the why? Because

that is the growth

as and when that 3 MTPA comes. Now on 3 MTPA also, see, Arun ji said, Ajay said, no, with a leverage below 1, okay, I don't think see, the money will come in the way of growth, I think.

As and when we announce, no, we will also come with the details on the funding plans. Robust earnings and the leverage below 1, I think we're very comfortable even with that 3 MTPA expansion as and when we announce it.

Just to give you an idea, see, per tonne setting up an aluminium facility, I can give the numbers for BALCO, has been around $2,500 per tonne. If you set up a 3 million unit, you can easily calculate what will be the capex required.

Having said that, the capex is also phased. Initially, the first two years, you are just ordering.

Only 10% or whatever is the order cost, that is the money which flows out. The maximum capex would happen in the third year after you start the project.

That is how the capex outflow will be there for the growth. We are very confident, given the earnings which we are having currently.

Arun ji also alluded to that. See, BALCO has invested Rs 10,800 crore on the growth.

Even while it has not reached the full capacity, it is debt-free. You can see very easily how much internal accruals can generate.

I hope I have tried to answer your question. Yeah.

Thank you

so much. Thank you so much for this, sir.

Just one last question, a little operational one for

I'll jump back. No worries.

Thank you for the opportunity, and congratulations for the very good results. I just had one question.

Given that CRISIL and ICRA have already upgraded Vedanta Limited, while India Ratings continue to maintain AA- with rating watch. Has management received any prospective feedback from India Ratings for additional conditions or any milestones required for rating upgrade?

Any thoughts on the rating agencies?

Shubham, it is only a question of time. You may have seen the entire rating upgrade that begins with ICRA a couple of months ago, and now CRISIL has followed the path.

There's no reason why India Ratings will be different. Typically, from rating companies' viewpoint, it is a function of the number first, which is a hard fact, and the second is a perception.

I think on both counts, we do foresee that India Ratings soon will approach rating committee and even that will become a AA+. It is only a process and a question of time.

That too, again, within weeks, not even months.

Okay. Thank you so much.

Hi, thank you, everyone. Thanks for the opportunity.

A two quick questions on BALCO only. One, where we are at the pot ramp-up at BALCO and how we are seeing the trend going ahead and when we can reach the full capacity at BALCO?

Second thing is, as BALCO has become net cash and for this 3 million tonne capacity also which we are talking about, that I'm assuming that we are talking about at Vedanta standalone at Vedanta Aluminium standalone level and BALCO may not be participating in that. What we are going to do with the cash which is being generated by BALCO?

Can it be given as a dividend to Vedanta Aluminium and then it can be passed on to Vedanta's shareholders or what's the thought process on that front?

Yeah. As regards BALCO ramp-up is concerned, against a plan of 22 kt in Q1, BALCO produced 24 kt from the new potline.

As we speak, the rest of the 25% capacity and this is with the 25% capacity being commissioned. As we speak, the rest 25% is being commissioned.

This year, we will get a volume close to around 260 or 270 kt from BALCO. Having said that, the entire facility will be commissioned or in full production as we exit this quarter.

Next year also, we will get another 190 kt from BALCO, so that we realize our total volume of 435 kt from BALCO expansion. The next question was about what will BALCO do.

One is that BALCO had some plans to start the Barra mine, and there also government has given some very early stage initiatives for coal gasification. We are exploring all that.

All that is on the drawing board, nothing particular as such as regards the commitment. These are the options for BALCO to grow.

In addition, it can grow in the power assets also. We are looking at it.

Also the capital structure or how the cash will be managed, we will take the decision as and when we have that scenario quarter-on-quarter. Anup ji, if you can add?

Ashish, I will only add. See, both because you mentioned 3 MTPA, you mentioned dividend.

I think if they are prerogative of the board, but I can only tell you all the options are on table. Why not?

BALCO has a structure and since we are on the drawing board, BALCO can even participate in 3 MTPA. All options are there on the table.

Okay. That's great.

Thank you and all the best.

Thank you.

Thank you. My first question is on VRL.

With the whole deleveraging, refinancing that you've done, what is the outflow expected for this year and next year?

Okay. As on June-end, Raashi, VRL debt at about $5 billion.

For the remainder of the year, we need to pay on the interest of 0.3, and we also have to fund KCM obligations, 0.1. In summary, in the remainder of the nine months, we need roughly $400 million out of the Vedanta Resources.

How that can be funded, you may have seen in the current fiscal, none of the Vedanta companies has paid dividend. Vedanta Aluminium just declared a dividend.

Out of the current quantum, it is Rs 8 per share. That leads to almost $175 million at Vedanta Resources.

In summary, in the remainder of the year, the need for cash at VRL is about $0.4 billion, it will be met mostly through dividends. If I look at next year, FY '28, right now we got a $1 billion of bridge financing.

It is a temporary arrangement. If I leave that aside, that will be refinanced very soon, we need again almost $1 billion at Vedanta Resources.

The number in FY '29, the year is next year, at about $730 million. So $1 billion next year, $730 in FY '29.

Again, it is a combination of the brand fee, almost $400 to $450 million, and the balance $550 to $600 again will be dividend. In summary, through a contractual brand fees and a routine 2% to 4% dividend, VRL will be self-managed.

Sorry, you mentioned in FY '20 sorry, this year was 300 million interest, and what was the other 100?

KCM funding is at about $100 million.

KCM funding. Okay.

The $1 billion in FY '28, how does that break up?

Roughly, it is equally. The loan repayment at about $330 million, interest again $350, and KCM again at $350.

All these three combined, 1/3 each is almost $1 billion.

This brand fee percentage is fixed until when?

It is a long-term contract. Brand fee agreement is valid till 2038.

All the five companies' board has again now done a revised benchmarking in an unbundled format. Practically across three businesses, this rate is 3%, and only in case of power and copper, it is 0.75%.

Net-net, for next three years, rate remains unchanged.

When you say 3 years, FY '30?

'27, '28, and '29. Till March '29, it is fixed.

Okay.

Then just on Zinc International business, what kind of cost and volume expectations should one have for the remaining year and going forward? In

volume, immediate goal is to get 300 kt mark, and then go to 500 kt mark through the phase two expansion, and finally finish at 750 kt mark. If you look at current 250 kt of concentrator that is being commissioned, if you add that to 200 kt, we see in a year's time surely touching 450 kt mark in Gamsberg.

When it touches 450 kt mark, the cost would come down to $1,200. That's the target that we are pursuing.

This year in FY '27, what should we think about volumes and cost?

There is some shortfall in the beginning, but we will try to be close to the guidance.

On the cost side, because the cost appears to be quite high compared to what you guided?

No, but we are surely working towards reducing cost. We will see.

If we have to revise, we'll do it in H2, not now.

Understood.

Raashi, just to say, Arun ji in his commentary has explained the restructured contract at BMM, which is aimed at bringing down the cost. You can see the transcript where they have explained that BMM was having a fixed cost model, now it has been brought down to a variable cost model.

Quarter-on-quarter, you will see a cost reduction, and that's how we are trying to achieve the guidance which has been given for the current financial year.

Got it. Just one last question from me.

For Vedanta Limited, you've given the capex number both on growth as well as sustaining for the quarter. What is the target for FY '27?

Can you repeat the question,

please? What's the capex target for Vedanta Limited, what is the growth and sustaining capex targeted for the full year?

Okay.

I have the number. In terms of Vedanta Limited, which consists of Zinc India, Zinc International, Copper, and couple of businesses, for the growth capex, the number is almost Rs 7,000 crore.

Rs 5,000 for Zinc India and Rs 2,000 for the remainder of businesses. Rs 7,000 growth capex for Vedanta Limited.

The maintenance capex is almost Rs 4,000 crore. Out of which a significant portion, almost 70%, again at Zinc India, and balance at Zinc International.

Rs 7,000 and Rs 4,000, that's the

number. Okay.

Thank you.

Hi. Thanks for the chance again.

Ajay, you mentioned a few things to look at it as a group entity, but still these are five different listed entities, and the cash flows will clearly be different. Is it fair to assume that at no point in time, we will see any kind of intercompany transactions among these five entities?

Routine RPTs, Indrajit, I think is a norm for any large conglomerate. I can't think of any example in the country where one large company, which has multiple businesses, don't have RPTs, of course, within the RPT compliances and following all governance requirements.

If you're leaning toward any intercorporate loans and deposits, then the answer is no. Across all the five companies, six companies actually, in Vedanta India and from Indian entities to Vedanta Resources, we are not foreseeing any kind of intercorporate loans.

That is comforting. Thank you so much.

Thank you.

Thank you, Sagar. Thank you, everyone, for joining us today and for your continued interest in Vedanta group companies.

We appreciate your time, your engagement, and the thoughtful questions. In case there are any further questions, any queries not answered on the call, please feel free to reach out to the IR team.

With that, we are concluding today's call, and we look forward to speaking with you again at the end of October with our Q2 numbers. Thank you, and have a good day.