Vedanta Oil & Gas reported a profit in the first quarter of FY27 despite a net exceptional loss of Rs 441 crore. The company's shares dipped 4% as it faced challenges in production and supply chain disruptions.
Revenue from operations rose by 8.5% year on year to Rs 2,507 crore, up from Rs 2,311 crore in the same quarter of the previous financial year. However, the company's EBITDA declined by 3% to Rs 1,232 crore. Global oil production and supply chain disruptions, particularly due to the uncertainty around the Strait of Hormuz and the conflict in the Red Sea, were cited as significant challenges.
Production metrics also showed a downward trend. Average daily gross operated production decreased by 17% year on year to nearly 78 kboepd, while average daily working interest production fell by 16% to 51 kboepd. These declines occurred despite a 54% surge in Brent crude prices to $104 per barrel during the quarter, driven by ongoing Middle East conflicts.
“Q1 FY27 marked a key milestone with the company's listing on the BSE and NSE.”
Jim Johnny Gast, Interim CEO and Whole-time Director
The company's interim CEO and Whole-time Director, Jim Johnny Gast, highlighted the operational resilience and exploration success achieved through a Deep Gas discovery. He emphasized the company's focus on disciplined capital allocation and advancing growth opportunities, including exploration drilling and enhanced oil recovery.
Vedanta Oil & Gas was listed on the NSE at Rs 38 per share on June 15, following the Vedanta demerger, with a market capitalization of Rs 14,859.47 crore at debut. Despite a recent 6% gain, the stock remains down over 2% for the year 2026.
Background
The company's listing on the BSE and NSE marked a significant milestone, reflecting its strategic focus on long-term sustainable growth.
Investors and stakeholders will be watching closely for further developments in the company's growth initiatives and market performance.
