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 presentation, 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 Steve Moore 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 Steve.

Steve, 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 barrels of oil equivalent per day during the quarter, comprising 63.1 thousand barrels of oil equivalent per day from Rajasthan, 11.6 from offshore assets, and 3.1 from OALP blocks.

Working interest production averaged 51.1 thousand barrels 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 OALP 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 '27 currently expected to be aligned with the FY '26 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.

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 ₹2,507 crore, which is 3% lower quarter-on-quarter basis, and EBITDA at ₹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 matrices.

Our profit after tax before exceptional items from continuing operations stands at ₹194 crore. The exceptional cost net of tax is ₹345 crore towards provision for impairment and one-off exceptional items during the quarter.

The PAT from continuing operations hence stands at a negative ₹151 crore. Following the transfer of the non-oil and gas business undertakings that were earlier held in the erstwhile Malco Energy Limited, there has been a one-time profit from discontinued operations which stood at ₹1,097 crore.

Consequently, the reported PAT for the company from continuing as well as discontinued operations stands at ₹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 month, 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 were 15% higher quarter-on-quarter basis. This was offset by lower volumes 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 Steve.

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, Steve, and good evening, everyone. The quarter marks an important milestone in our journey as the demerged entity effective 1st May 2026.

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

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

Further, we are working on plans to add around another 7.2 gigawatt starting from FY '30 onwards. It will start getting kicked in.

Fuel and volume security remain 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 and projects with strong stability and visibility of revenues and costs.

Coming to quarterly performance, Vedanta Power delivered a resilient operational performance. During quarter one, FY '27, we achieved sales of 5,224 million units, up 38% YoY basis, and revenue increasing 31% to ₹2,607 crore.

Meenakshi Energy delivered highest-ever quarterly EBITDA of ₹112 crore, backed by the highest sales volume of around 1,350 million units. Despite import coal prices increasing by about 50%, our team on ground has an exceptional work by containing the fuel cost by 12% on YoY 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.

Talwandi Sabo improved its plant availability to 86% from 77% on QoQ basis and achieved highest biomass co-firing of 7.9%, which is highest among the NCR region power plants. The ash utilization remains 94% with increased ash sale revenue to ₹9 crore.

Jharsuguda maintained stable operational performance, however, we received favorable regulatory outcome in short supply matter with potential refund of ₹300 crore in days to come. Also, we have got positive order from the state regulatory commission for recovery of ash cost by up to ₹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 will remain focused on restoring unit one and completion of unit two, which will be key for our growth capex trajectory for the company.

We plan to start unit one by the end of quarter two FY '27, and unit one remains on track for completion by quarter four of FY '27. Finally, we have also notified our insurance provider 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 ₹2,607 crore, 31% YoY growth, on sales of 5,224 million units, which increased 38% YoY. While EBITDA for the quarter stood at ₹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 ₹487 crore.

By neutralizing it, PAT before exceptional one-time impact is negative ₹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 ₹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, and this enables value creation across the entire value chain. During the first quarter, we have delivered a strong operational and financial performance with a revenue increase of 18% year-on-year and EBITDA growth of 54%.

Margin expanded from 11% to 14%, and PAT stood at ₹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 tons, 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 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 ₹3,662 crore, an 18% increase year-on-year, and EBITDA of ₹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 ₹2,733 crore as on June 26. Strong operating cash flows helped fund pre-monsoon working capital requirements and ongoing growth project.

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, and with this, I hand over to Rajesh, CEO, Aluminium.

Thank you, Pankaj, and very good evening, everyone, and 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 increased dike space, while our newly commissioned RO facility improved the wastewater recycling and reduced freshwater consumption by 8%.

Renewable energy supply from Serentica increased to 198 megawatts, a 60% sequential growth, and we remain on track to achieve more than 371 megawatts 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 thousand tons 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, 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 ₹21,105 crore, reflecting a 45% increase YoY and a 13% increase quarter-on-quarter.

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

Coming to EBITDA, EBITDA was at ₹10,499 crore, up 134% YoY and up 24% quarter-on-quarter. Sequentially, EBITDA per ton expanded from $1,511 per ton to $1,804 per ton.

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

Our return on capital employed stood at 42% at the end of quarter one, 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 ₹6,000 crore. This provides us with a strong liquidity cushion and enhances our financial flexibility.

The board has approved an interim dividend of ₹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 ton.

Though 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 ton.

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 itself since demerger, we have delivered EBITDA of ₹8,459 crore and PAT of ₹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 tons.

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

At Zinc International, overall mined metal production was 48,000 tons, including contribution of 3,000 tons from Black Mountain Mine. Gamsberg Phase 1 production rose 10% sequentially to 45,000 tons.

Gamsberg cost of production also declined to $1,549 per ton, down 7% quarter-on-quarter, delivering an EBITDA per ton 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 tons, surpassing previous best of 113,000 tons in quarter four '26. Improvement in finished goods yield 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 ton, up 13% sequentially, also delivering the best-ever quarterly EBITDA of ₹101 crore. Copper India recorded sales of 53,000 tons, 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 ton per annum tailings reprocessing plant is under construction and is expected to be completed by quarter four of FY 2028, while the 250,000 tons per annum expansion project of smelter is expected to commission by quarter two of FY 2029.

At Zinc International, Gamsberg Phase 2 plant is likely to commence operations in August. It will add another 200,000 tons of MIC capacity, taking the total capacity to 450,000 tons per annum.

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

At Copper India, Phase 1 debottlenecking has augmented installed capacity to 222,000 tons per annum. Further debottlenecking will take this capacity to 229,000 tons 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 business, 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?

Yes. Thank you, Arun.

Good evening, everyone. We're meeting today for the first quarterly results after Vedanta's historical demerger, and that is unlocking significant value with a combined market cap of resulting five companies growing over ₹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 stand numbers that 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 through June.

Numbers are comparable, and they are for entire quarter, April through June. I will start briefly with Vedanta highlights.

On Vedanta Limited's full performance, revenue increased by 51% YoY to ₹23,456 crore. EBITDA nearly doubled, rising by 90% YoY to highest-ever ₹8,459 crore with a margin of 57%, up 985 basis points YoY.

Profit after tax, PAT, grew to ₹5,294 crore, up ₹152 crore YoY, again, highest-ever on a like-to-like basis. In Q1, Vedanta invested ₹1,148 crore in growth capex, while deleveraging the balance sheet by more than ₹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 ₹19,922 crore, it remains resilient at the same time growth focus. I'll move on very briefly to Vedanta Resources, VRL, highlights.

VRL's credit strength is well-recognized with rating upgrade 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 to 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 faster debt reduction 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 cost at Vedanta Resources. This will lead to more than ₹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 rates and average maturity of 8.5 years, and additionally tied up a syndicate term loan of up to $2.25 billion at 6.4% interest rates with average maturity of three years. Overall, this will significantly flatten VRL's liquidity profile, and that can be serviced through 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 disciplined allocation of capital. With this, I now hand over to Operator for Q&A.

Hi. Can you hear me?

Hello?

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

Can you explain the difference?

That's a small console adjustment, actually. The difference that you are talking about, it gets eliminated later.

For the transactions between BALCO and VAML.

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

Yes, absolutely.

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, I'll start with the aluminium business.

Our ask rate for alumina production for the last three quarters is almost 1.1 million tons. How you are to achieve that 4.1-odd million tons for the full year?

How should we look at that trajectory? Will it be more second-half heavy, and given the exit run rate of 1Q and what we are doing in July so far, are you 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, and 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 tons 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, as you have rightly said, alumina cost has come down 3% quarter-on-quarter, and you would recall 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, we will start seeing alumina cost closer to $750. Okay.

Now $780 is what we 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, and with the same captive mix in quarter two and the lower API, we are en route to that 750 number, what we talked.

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

See, the further reduction will again come as we ramp up Lanjigarh production because going forward, 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 dollars, kind of terms?

The way to look at, Indrajit, if you look at historically, Vedanta's dividend yield has been quite high, in fact, a 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 cap may be a $1.5 billion payout on console basis of all the five business units. Now, you appreciate, Indrajit, dividends will be a board matter, but one way to model this: look at the combined market cap of each business and look at a 4% to 5% dividend yield.

You are right, Vedanta Aluminium being almost at about $18-$20 billion out of 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.

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 will be more on growth or are we expecting further deleveraging from $4.5 billion debt? One is that, and then at VAML, just want to understand what sort of debt or leverage we are comfortable beyond which we will consider paying dividends, and 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 the question.

You are right that at VRL, the deleveraging has been accomplished to a large extent, and over the last three-odd years, net debt 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 to come down from $5 billion down to $3 billion. We also committed that Vedanta India on 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 necessarily. 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 push energy, and our macro tailwinds in terms of currency and the pricing, the outlook for 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 will be having total free cash flow of roughly $5 billion, ₹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 are looking at: we will be keep investing for the growth in the current year at about ₹20,000 crore in the capex across the five entities.

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

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, let me 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 projects without things like expansion of a million ton expansion in Zinc, Aluminium, completing the BALCO project, ESL Bokaro completing the 2 million ton expansion project, or keep on working on 2 million ton expansion project. All these Gamsberg Phase 2, all these happened in last three years.

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

Yes, it'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?

See, if you look at our financials 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 are invested in, we have a capex left of around ₹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 packaging, and as and when we will have details, we will come to the board.

Today, if you ask me, the net debt stands at ₹29,500 crore. The leftover capex to be spent on the growth already announced is around ₹7,000-₹8,000 crore, including BALCO.

That's it.

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

Yes, broadly yes. For this year, it will be around ₹5,000 crore plus another, say, ₹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, then or maybe in '29 only?

As I said, maybe in a quarter or so, we will come back to the market with more details.

Understood. I have a 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 2?

For ESL, I will say that in this quarter, we have received the stage one forest clearance, and 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, and with Sijimali coming in, what sort of cost savings do we expect purely from the captive bauxite mine?

See, broadly at today's API level, and assuming that this Middle East crisis will normally bottom out or will even out, the difference will be to the tune of $50-$60 when you look at the mix, captive alumina versus the bought-out alumina. Now, this captive alumina also has 50% of the imported bauxite, and to address your question, that once Sijimali starts ramping up, we can expect, say, another $40 to $50 per ton 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 tons, and the next year it can be between 6 to 7 million tons.

Okay. Got it.

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

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 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, and 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, and 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, 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, and coming to bauxite, then the idea is to take it to Lanjigarh, and what Rajesh 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 waiting in the queue for questions.

Thanks, and all the best.

Operator, we can move to the next.

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%, but still my revenue has remained flat QoQ, and my EBITDA is also up ₹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 QoQ?

Hi, this is Arpit here, and 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.

It's a typical sales pattern that we have.

Got it. The production and sales number have got a deviation due to which the numbers have got impacted?

Yeah.

Got it. 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, how 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 would 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 planned shutdowns, and you would recall that during the monsoon period, there are normally some power plant shutdowns.

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 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, we have been hit by the carbon cost and the furnace oil cost. On a net-to-net basis, 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, and 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 highest ever.

The sales volume has not inched up in the quarter. Why was this inventory build-up there in Q1?

See, what happens normally at the fourth quarter or the year-end quarter, 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, there is a tendency that we wipe off the inventory line at the stock and everywhere.

Okay. Understood.

Thank you. That's it from me.

Thank you. You're audible,

Yes, can you hear me? Am I audible?

Yeah. Can you talk us, sorry.

Can you 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, or another agency level?

We finally have to get the consent to operate, we are in the process of getting that, and we expect that to happen in this quarter, and as mentioned, after this quarter, monsoon and rain, we plan to start the mine.

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 tons 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 who do the mining for us and deliver the ore.

We have already appointed the MDO partner for Sijimali, and so 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 operations permission has been obtained at the Kuraloi coal mine, what is the mine volumes 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 tons, and Ghogharpalli abhi we are just evaluating, but this year I think we will wait when we get start the work to estimate.

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

8 million tons.

You are confident that it can go to 8 million tons 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, for the balance three quarters, we are hedged about 28% at average price of 3,062. If you are 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. Second, I just wanted to check on Saudi assets.

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?

As of now, we are on the exploration partner finalization, and after that only we will 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 absolute tonnage standpoint, how much are we procuring from OMC right now?

What is the corresponding price, and 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 you are aware that we are getting this under the court order as of now.

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

Any particular reason why we are not indicating payout policy for all the companies? You have indicated pretty good commentary for all the five entities together.

Any timelines over there, and secondly, there is an ICD of ₹960 crore at VISL. How should we look into that?

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

That's right. You may have seen

in the last board meeting, and all the new four companies also have adopted their own policy on payout of dividends. The key change remains 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 remains the policy has changed from being a prescriptive to more descriptive.

In that case basically, all the four of these boards will have far bigger flexibility. Depending upon need for the capexes in terms of a profit ploughback 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, and 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 cap is a number what we are targeting for the group.

Sure. Sir, on ICD?

Ritesh, can you repeat your question?

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

This number was ₹9,434 crore on 26th. I think it would be because of the demerger, and that number has 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 ₹13,000 crore, and this is the amount which is there in the VISL books after the entire restructuring, which was completed.

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

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

Out of ₹13,000 crore, total ₹14,000 crore, ₹13,000 crore had been waived off the intercompany loan, and ₹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. Fair.

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

How should one understand, appreciate that?

See, at a thematic level, Ritesh, this is the beginning, right, and not the conclusion. In fact, demerger leads 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 Limited alone, we 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 ₹30,000 crore or $3 billion right now is more aspirational.

The whole demerger, if you also look at the Vedanta's demerger, it was far more complex. It took us two years' time, particularly 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 forge that business. If you look around in large business house, 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 the 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.

There is no hurdle we are seeing at this moment.

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

We have already intimated all these authorities before start of work, and the major approvals generally is required from the boiler inspector and electrical inspector. All have been intimated before start of work, and 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, some sense what PPAs are available and how are you approaching that?

We commissioned 700 megawatt at Meenakshi and 600 megawatt last year at Athena, right, and out of this 1,300 megawatt, we already have tied up 500 megawatt 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 plants.

We are not very much behind clocking PPAs at any rate. If you look at what we tied up with Tamil Nadu for five years was one of the best rate available among all the PPAs which were tied up last year.

Now when we are tying up for Kerala one year, that also is at a respectable rate of ₹5.97. 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 dam rate versus this year's dam rate, we are already seeing a difference of around ₹1 average. I think it's a good opportunity for us, but we are only looking at all the 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, which is remaining, 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, but 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.

Rajesh, let me take this question. See, we spoke about the hot metal cost of $1,700 per ton in this quarter.

Okay. Am I audible?

On the cost, if you look at, say, three, four 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, three, four 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 the savings will come: one, as and when the Lanjigarh ramps up. Today we are doing about 70%-72%, and with Lanjigarh ramping up to 5 million ton, 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 you have, say, Ghogharpalli coming into the play, we will start getting the advantages on the 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, two to three to four quarters, we should start realizing those savings.

Thank you for this, sir. My second question again a long term in nature.

BALCO has already become net cash, and given your run rate of 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 policy that you will be following at Vedanta Aluminium, and 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're right. Ajay actually elaborated it in detail, I'll not get into that because you mentioned it.

Now coming to the capex, as I said, for the year as a whole, FY '27, okay, we expect the capex to be around ₹5,000 crore for this year. Two 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.

Is it safe to say that for next couple of years the

Here we have not included that is the growth as and when that 3 MTPA comes. On 3 MTPA also, see, Arun said, Ajay said, with a leverage below one, okay, I don't think the money will come in the way of growth, I think.

As and when we announce, we will also come with the details on the funding plan. Robust earnings and the leverage below one, 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 ton setting up a aluminium facility, I can give the number for BALCO has been around $2,500 per ton. 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, and 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 also alluded to that.

See, BALCO has invested ₹10,800 crore on the growth, and 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.

Thank you so much for this, sir. Just one last question, a little operational one for

I'll join back. No worries.

As

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 continuing to maintain AA- with rating watch, has management received any perspective feedback from the rating on additional condition or any milestone required for rating upgrade in talk with the rating agency?

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

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

I think on the both accounts, we do foresee that the India Ratings soon will approach the rating committee, and even that will become AA+. It is only a process and a question of time, that too again within the weeks, not even months.

Thank you so much.

Hi. Thank you, everyone.

Thanks for the opportunity. 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 ton capacity also, which we are talking about, that I'm assuming that we are talking about 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 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, and 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.

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, and also the capital restructure or how the cash will be managed, we will take the decision as and when we have that scenario quarter-on-quarter.

Anup, if you can add.

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

I think it's their prerogative of the board, but I can only tell you all the options are on the table, and why not? BALCO share structure, and since we are on the drawing board, BALCO can even participate in 3 MTPA.

I'm saying all options are there on the table.

Okay. That's great.

Thank you, and all the best.

Thank you. 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, and for the remainder of the year, we need to pay only interest of 0.3, and we also have to fund capex obligation, 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 the dividend.

Out of the current quantum is ₹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 a billion at Vedanta Resources. Those numbers in FY '29, the year next year, at about $730 million.

A 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 fee and a routine 3% to 4% dividend, VRL will be self-managed.

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

It is a capex funding is at about $100 million.

Capex funding, okay. The $1 billion in FY '28, how does that break up?

Roughly, it is equally so the loan repayment at about $330 million, interest again 350, and capex again at 350. All three combined, 1/3 each is almost a billion.

This brand fee percentage is fixed until when?

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

The last 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 three years, FY '30?

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

Okay. Then

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

volume expectation is immediate goal is to get 300 kt mark and then go to 500 kt mark through the Phase 2 expansion and finally finish at 750 kt mark. If you look at current 250 kt of concentrator that is in commission, 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 following.

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

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 will do it in H2, not now.

Raashi,

if you can see Arunji in his commentary has explained the restructured contract at BMM, which is aimed at bringing down the cost. You can see the transcript where he has 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 that has been given for the current financial year.

Got it. Just one last question for me for Vedanta Limited.

You've given the capex expenditure both on growth as well as sustaining for the quarter. What is the target for FY '27?

Can you repeat the question? There was a Capex target

for Vedanta Limited, what is the growth and sustaining capex targeted for the full year?

I'll have the number. In case of Vedanta Limited, which consists of Zinc India, Zinc International, Copper, and couple of others, for the growth capex, the number is almost ₹7,000 crore.

So 5,000 for Zinc India and 2,000 for the remainder business. ₹7,000 crore capex for Vedanta Limited.

The maintenance capex is almost ₹4,000 crore, and out of which a significant portion, almost 70%, again at Zinc India, and balance at Zinc International. So 7,000 and 4,000, that's the

number. 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?

See, routine RPTs, Indrajit, I think is a norm for any large conglomerate, and 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 the governance requirement. If you are leaning towards any intercorporate loans and deposits, then the answer is no.

Across all the five companies, six companies actually, 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, and 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.