Earnings Review
Vedanta consol PAT up on aluminium ops; misses Street view
This story was originally published at 16:51 IST on 30 April 2025
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--Vedanta Jan-Mar consol net profit INR 34.83 bln
--Analysts saw Vedanta Oct-De consol net profit INR 37.20 bln
--Vedanta Jan-Mar consol net profit INR 34.83 bln vs INR 13.69 bln year ago
--Vedanta Jan-Mar consol revenue INR 404.55 bln vs INR 355.09 bln year ago
--Vedanta FY25 consol net profit INR 149.88 bln vs INR 42.39 bln year ago
--Vedanta FY25 consol revenue INR 1.53 tln vs INR 1.44 tln year ago
--Vedanta Q4 zinc, lead, silver India sales INR 88.05 bln vs INR 72.61 bln
--Vedanta Jan-Mar consol aluminium sales INR 159.67 bln vs INR 123.93 bln
--Vedanta Jan-Mar consol EBITDA INR 116.18 bln, up 30% on year
--Vedanta Jan-Mar consol EBITDA margin 35%, up 465 bps on year
--Vedanta net debt INR 532.51 bln on Mar 31 vs INR 573.58 bln on Dec 31
--Vedanta Jan-Mar aluminium ops EBITDA INR 46.58 bln vs INR 30.00 bln yr ago
--Vedanta sees FY26 Alumina production at 3-3.1 mln tn
--Vedanta sees FY26 aluminium production at 2.5-2.6 mln tn
--Vedanta sees FY26 aluminium cost of production per tn at $1,700-$1,750
By Rajesh Gajra
NEW DELHI - A sharp rise in aluminium segment operating profit and revenue, and a strong growth in India revenue from zinc, lead, and silver businesses enabled Vedanta Ltd. to post a strong bottom line performance for the March quarter. The consolidated net profit of INR 34.83 billion for the March quarter was, however, below analysts' expectation of INR 37.20 billion.
Despite missing the Street view, shares of Vedanta rose by around 0.4% within the first five minutes of the company announcing its earnings at 1425 IST. The shares ended Wednesday at INR 419.20, up 0.7% from the previous close, on the National Stock Exchange of India.
The company's consolidated net profit was up 2.5 times on year, but sequentially it was down 1.8%. The on-year growth of 2.5 times was the highest in 14 quarters. Vedanta's consolidated revenue from operations was up 14% on year and 3.4% sequentially at INR 404.6 billion, which was above the Street view of INR 386.9 billion.
The consolidated earnings before interest, tax, depreciation, and amortisation of Vedanta jumped 30% on year to INR 116.18 billion, with the EBITDA margin expanding sharply by 465 basis points to 35%. The company's revenue and EBITDA performance in the March quarter was largely driven by the aluminium segment that reported substantial on-year increases of 29% in revenue to INR 159.7 billion and 55% in EBITDA to INR 46.6 billion.
Sequentially, however, the aluminium segment's revenue was up by only 4% and EBITDA was up only 2.6%. The aluminium revenues were primarily on the back of a rise in prices, while the EBITDA was aided by non-material increase in cost of production of alumina.
The company's earnings performance for the March quarter was also aided by the Zinc India segment which reported a 21% on year rise in revenue to INR 88.1 billion and a 33% rise in EBITDA to INR 48.11 billion. The revenue growth in this segment was largely due to higher zinc and silver prices in the international markets.
Dragging the consolidated revenue growth of Vedanta in the March quarter was its oil and gas segment that recorded a 21% fall in revenue to INR 26.6 billion and a 20% fall in EBITDA to INR 12.1 billion. The average oil price realisation declined 7% on year to $70.9 per barrel in Jan-Mar.
In the iron ore and steel segment, Vedanta reported a 38% on year fall in iron ore revenue to INR 15.3 billion and a 7% decline in steel revenue to INR 18.8 billion in the March quarter. The iron ore EBITDA fell sharply by 44% on year to INR 3.1 billion and the steel EBITDA increased to INR 1.51 billion from an EBITDA loss of INR 160 million in the year-ago quarter.
In Jan-Mar, Vedanta's copper segment saw a 22% increase in revenue to INR 61.4 billion but recorded an EBITDA loss of INR 490 million which was higher than the year-ago EBITDA loss of INR 120 million. The revenue growth came amid a 11% increase on year in LME copper prices to $9,340 per tonne in the March quarter, according to Vedanta.
In the power segment, the EBITDA fell substantially by 42% on year to INR 1.31 billion. The company's zinc international segment recorded a 75% on-year revenue growth to INR 11.1 billion and the segment EBITDA also rose sharply to INR 4 billion from INR 590 million in the year ago quarter.
Vedanta gave a 2025-26 (Apr-Mar) guidance on key metrics in its post-earnings investor presentation. The company sees FY26 alumina production at 3.0-3.1 million tonnes, and aluminium production at 2.5-2.6 million tonnes in FY26, with a aluminium segment cost of production at $1,700-$1,750 per tonne.
The company's net debt at the end of March was down at INR 532.5 billion from INR 573.6 billion at the end of December. In FY25, Vedanta's consolidated net profit increased 3.5 times to INR 149.9 billion, while the consolidated revenue from operations was up 6% to INR 1.53 trillion. End
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