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Informist, Thursday, Jul. 31, 2025

By Rajesh Gajra

NEW DELHI – Vedanta Ltd. beat analysts' estimate on both consolidated net profit and revenue for the June quarter. The company's bottom line rose tracking a better-than-expected revenue performance. The top line growth was driven by revenue growth in the aluminium, copper, iron ore, power, and zinc international segments, even as revenue from zinc and lead India, and oil and gas segments declined.

Vedanta reported a nearly 12% on-year fall in its consolidated net profit to INR 31.85 billion in the June quarter but the net profit number was higher than analysts' estimate of INR 29.7 billion. The consolidated revenue increased 5.8% on year to INR 378.24 billion, which was also above the Street view of INR 363.59 billion.

The consolidated earnings before interest, tax, depreciation and amortisation, or EBITDA, of Vedanta was up 5% on year at INR 107.46 billion in the June quarter. The consolidated EBITDA margin, excluding copper, increased 81 basis points on year to 35%.

Vedanta said in an earnings investor presentation that its guidance on alumina production for 2025-26 (Apr-Mar) was 3.0-3.1 million tonnes, unchanged from the guidance given at the end of the March quarter earnings announcement. The company has also retained its aluminium production guidance for FY26 at 2.5-2.6 million tonnes and the aluminium segment's cost of production at $1,700-1,750 per tonne. The company has kept unchanged the FY26 guidance numbers for zinc India mined and finished metal production, silver production, oil and gas gross volume and operating expenditure, zinc international, steel, and ferrochrome.

Compared to the March quarter, Vedanta's consolidated net profit was 8.6% lower while the revenue declined 6.5%. The consolidated EBITDA in the June quarter was 8% lower than that in the trailing quarter. Chairman Anil Agarwal said in an earnings press release the company's June quarter EBITDA was the highest ever and came amidst market volatility across the world.

SEGMENT PERFORMANCE

The aluminium segment recorded an 8% on-year increase in revenue to INR 145.56 billion in the June quarter on the back of a small increase in aluminium production to 605,000 tonnes from 596,000 tonnes a year ago. The EBITDA of the segment was, however, flat on year at INR 44.62 billion in the June quarter due to an increase in cost of production per tonne to $1,765 per tonne from $1,716 per tonne and a 3% fall in aluminium prices on the LME.

In the zinc India business under its subsidiary Hindustan Zinc Ltd., the revenue from zinc and lead operations declined to INR 61.16 billion in the June quarter from INR 64.21 billion in the year-ago quarter, and the silver revenue was nearly flat at INR 14.26 billion. The EBITDA for the zinc India segment was down 2% on year at INR 38.15 billion.

The zinc international business of Vedanta recorded a 53% on-year rise in revenue to INR 11.50 billion in the June quarter while the EBITDA jumped to INR 4.22 billion from 1.85 billion a yeat ago. The company said this segment's mined metal production increased 50% on year to 57,000 tonnes in the June quarter.  

The copper segment revenue of Vedanta jumped 35% on year to INR 63.74 billion. The company reported an EBITDA loss of INR 260 million for the June quarter, lower than the EBITDA loss of INR 570 million in the year-ago quarter. The price of copper on the LME was down 2% during the June quarter.

In Vedanta's oil and gas segment, the revenue fell 21% on year to INR 23.03 billion. The segment's EBITDA, however, rose 17% on year to INR 12.68 billion. The iron ore and steel segment's revenue increased 1% on year to INR 13.34 billion while the EBITDA rose 11% on year to INR 2.04 billion.

The net debt of Vedanta was INR 582.20 billion as on Jun. 30 while the gross debt was INR 803.57 billion. The company's Chief Financial Officer Ajay Goel said in the press release the cost of debt of the company reduced by around 130 basis points on year to 9.2% in the June quarter.

In a separate stock exchange filing, Vedanta said it got the board's approval for investing $84 million towards enhancement of phase 2 of Gamsberg project. Vedanta's shares closed at INR 425.65 Thursday, down 2.1%, on the National Stock Exchange.  End

US$1 = INR 87.60

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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