Informist, Monday, Oct. 6, 2025

 

By Rajesh Gajra

 

NEW DELHI - A mixed quarterly production performance marked the aluminium segment of Vedanta Ltd., the metals-to-mining-to-oil-and-gas conglomerate, in the September quarter. The company released key production numbers for the September quarter Saturday.

 

There was a slowdown in the company's total aluminium production growth in the September quarter, with the growth rate turning out to be the second lowest in at least four quarters, according to the company's quarterly production data. On the other hand, the company's alumina production at its Lanjigarh factory was the highest in at least four quarters, the data showed.

 

Vedanta manufactures metals, including aluminium, zinc, lead, silver, and steel. It also has operations in ferrochrome, oil and gas, and electricity. In the September quarter, Vedanta's total aluminium production increased 1.3% on year to 617,000 tonnes, which was lower than the 1.5% growth in the trailing quarter at 605,000 tonnes and the second-lowest growth in the last four quarters, according to the data.

 

The company saw significant year-on-year growth in alumina production at its Lanjigarh facility. Alumina production jumped up 31% on year to 653,000 tonnes in the September quarter. In the June quarter, alumina production at the company's Lanjigarh unit increased 9% on year to 587,000 tonnes, while in the March quarter it had fallen 11% on year to 431,000 tonnes. In the December quarter, alumina production at the company's Lanjigarh factory increased 7.4% on year to 505,000 tonnes.

 

Financial research company Viceroy Research said the year-on-year growth in Vedanta's aluminium production in the September quarter was low "despite feedstock expansion." The production growth was "not reflective of capex on expansions" at the company's Jharsuguda facility and at subsidiary Bharat Aluminium Co. Ltd., Viceroy Research said. Vedanta manufactures aluminium at its Jharsuguda factory and also includes aluminium production at Bharat Aluminium, in which it holds a 51% stake in its consolidated numbers.

 

The 31% rise in alumina output in the September quarter was largely due to plant expansion, Viceroy Research said. In the aluminium manufacturing process, mined bauxite, a sedimentary rock with minerals, is converted into alumina through a refining process. The alumina is then put through a smelting process to produce aluminium metal.

 

According to Viceroy Research, Vedanta's "guinea bauxite supply loss" meant reliance on more expensive imports. In an earlier report, the research firm had said that Vedanta's aluminium has "operated without a captive bauxite supply for over 15 years" and that "production at the Lanjigarh bauxite refinery unit "has stalled." However, Vedanta in a statement on Jul. 9 said Viceroy Reseach was indulging in "selective misinformation and baseless allegations to discredit the (Vedanta) Group."

 

ZINC INDIA
The zinc operations of Vedanta in India are conducted through its listed subsidiary, Hindustan Zinc Ltd., in which the company holds a 61.84% stake as of Jun. 30. The production growth in mined zinc was muted in the September quarter, similar to the growth in the preceding quarter. But the saleable refined zinc output fell for the second consecutive quarter, with the de-growth widening in the September quarter.

 

Vedanta said mined metal production in its Zinc India division increased 1% on year to 258,000 tonnes in the September quarter, while the production of saleable refined metal fell 6% on year to 246,000 tonnes. In the June quarter, the company's mined metal production had increased 1% on year to 265,000 tonnes, while the production of saleable metal declined 5% on year to 250,000 tonnes.

 

Vedanta said the 258,000 tonnes production of mined zinc by the company was the best ever for the September quarter. However, Viceroy Research said the fall in saleable zinc metal output was in "direct contradiction to the narrative of record production."

 

Saleable metal for Vedanta's Zinc India divisions comprises zinc and lead. The refined zinc output was up 2% on year to 202,000 tonnes in the September quarter, as compared to a 4?cline in the June quarter. 

 

Vedanta's refined lead output declined 29% on year in the September quarter, compared to a 6?cline in the June quarter, indicating a widening of the production decline. Silver production fell 22% on year in the September quarter, with the decline being double the 11?ll in production in the trailing quarter.

 

Monday, shares of Vedanta ended at INR 470.80 on the National Stock Exchange, marginally down from the previous close. Shares of Hindustan Zinc closed flat at INR 491.50 on the NSE.  End

 

Edited by Saji George Titus

 

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