Finance

Vedanta contributes nearly Rs 5 lakh crore to exchequer over decade

Chandigarh, June: Vedanta Limited, India’s leading diversified natural resources company, has contributed Rs 62,722 crore in FY26 to the exchequer as per the company’s 11th Tax Transparency Report. The report reinforces Vedanta’s steadfast commitment to nation-building and transparent governance. The contribution represents 36% of the company’s consolidated revenue from operations, playing a pivotal role in India’s economic development.

This marks a 13.3% increase in contributions compared to the previous year, bringing Vedanta’s cumulative contribution to the exchequer over the past ten years to Rs 4,83,034 crore. The company has demonstrated unwavering focus on fiscal discipline, nation-building, and support for the Viksit Bharat mission. The Group ranks among India’s top 3* private-sector contributors to the national exchequer.

This contribution to the exchequer was on the back of Vedanta’s historic-best financial performance in FY26. Revenue grew 15% to Rs 1,74,075 crore – the highest in the company’s history – while EBITDA grew 29% to Rs 55,976 crore and Profit After Tax (PAT) rose 22% to Rs 25,096 crore. The balance sheet strengthened significantly, with Net Debt to EBITDA improving to 0.95x from 1.22x – its best level in 14 quarters.

The strong financial performance was driven by robust operational performance across Vedanta’s diversified portfolio spanning zinc-lead-silver, aluminium, copper, iron ore, steel, power, nickel, chrome, and oil and gas.

Zinc remained the largest contributor at Rs 19,053 crore, followed by Aluminium (now listed as Vedanta Aluminium) at Rs 15,788 crore and Oil & Gas (now listed as Vedanta Oil & Gas) at Rs 11,697 crore – a reflection of the breadth and diversification of Vedanta’s portfolio across critical minerals and energy.

Key Highlights from the Vedanta Ltd Tax Transparency Report:

The 11th edition of the report offers a comprehensive breakdown of Vedanta’s tax contributions for FY 2025-26:

Government Royalties & Profit Petroleum (Rs 14,840 crore): Includes royalties paid to state governments of Rajasthan, Odisha, Gujarat, Andhra Pradesh, Chhattisgarh, Goa, Karnataka and Assam for bauxite, lead-zinc, silver, iron ore, crude oil and natural gas, as well as profit petroleum paid to the Government of India under Production Sharing Contracts

Taxes on Income and Capital (Rs 8,290 crore): Comprising corporate income taxes as filed in statutory returns across all jurisdictions

Other Taxes Borne (Rs 11,897 crore): Including duties on export and import of Rs 5,980 crore, oil cess/NCCD of Rs 2,503 crore, electricity duty of Rs 1,252 crore and ineligible GST of Rs 1,663 crore

Indirect Taxes (Rs 21,777 crore): Including CGST, SGST and IGST from the sale of goods and services across all business units

Withholding Taxes (Rs 3,188 crore): Comprising payroll taxes and taxes deducted at source on vendor and contractor payments

Corporate Dividends to Government of India (Rs 1,180 crore): Paid through the Government of India’s 27.92% stake in Hindustan Zinc Limited

Tax transparency forms a core component of Vedanta’s broader Environmental, Social, and Governance (ESG) agenda. Through its voluntary and proactive disclosures – maintained for eleven consecutive years – the company aims to foster stakeholder confidence and uphold the highest standards of corporate governance. Vedanta’s tax principles are closely aligned with the B-Team Responsible Tax Principles and the Extractive Industries Transparency Initiative (EITI), reinforcing its commitment to responsible corporate citizenship.

Wem India

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