Vedanta Oil and Gas share price jumps up to 18% as Q2 EBITDA rises 34%

Shares of Vedanta Oil and Gas, the oil and gas company in the Vedanta group, rose as much as 18% to Rs 32.90 on the National Stock Exchange during trading on Friday, October 30, 2026, after the company reported its results for the July to September quarter. At about 10:56 am the stock was up 16.62% at Rs 32.49. The company reported EBITDA of Rs 1,393 crore, up 34% from a year earlier, and a profit after tax from continuing operations of Rs 746 crore, against a loss of Rs 152 crore in the April to June quarter. Chief executive Jim Johnny Gast said the company is working to raise production to 1 lakh barrels a day in the near term, with a possible increase to 1.5 lakh barrels a day in FY28.

The results show the effect of higher oil prices on an Indian oil producer. Vedanta Oil and Gas produced 19% less oil and gas than a year earlier, yet its operating profit rose by about a third. The reason is price: it received about $97 for each barrel, compared with $69.1 a year earlier. When the price per barrel rises faster than output falls, revenue and profit can still grow.

The swing from a loss of Rs 152 crore in the April to June quarter to a profit of Rs 746 crore from continuing operations in July to September is what investors reacted to most sharply. A move of 16% to 18% in a single morning is large for any listed company and shows how much the market had been doubting the company's earnings.

The production plan is the longer story. Output has been falling, and the company now says it wants to reverse that, first to 1 lakh barrels a day and possibly to 1.5 lakh in FY28. The higher figure is described as possible, not committed, and depends on new fields, especially deepwater finds in the KG Basin, which are costly and slow to develop. Investors will judge the target against actual production numbers over the coming quarters.

There is also a wider economic side. Oil prices have been high, with one report noting crude above $118 a barrel. That helps producers like Vedanta Oil and Gas but raises costs for India as a large importer, adds to inflation and squeezes oil marketing companies and airlines. Even after Friday's rise, the stock was about 31% below its 52-week high of Rs 44.54, according to one report.

Short-term: The stock's sharp move may bring more trading volatility in the next sessions as investors weigh the results against the fall in production. Other Vedanta group companies were also reported to have risen on the day.

Long-term: The company's value will depend on whether it can turn its production targets into actual barrels, and on oil prices. If prices fall back, the benefit seen this quarter would shrink unless output rises.

Who is affected: Shareholders of Vedanta Oil and Gas and the wider Vedanta group; workers and suppliers in its oil fields; and, indirectly, Indian consumers, since higher domestic production can reduce the country's dependence on imported oil.

This report describes the company's results and share movement and is not a recommendation to buy or sell.

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