Vedanta Limited Quarterly (Q4FY25) Result Analysis

Vedanta Limited (“Vedanta”), a subsidiary of Vedanta Resources Limited, is one of the world’s leading natural resources, critical minerals, energy and technology companies spanning across India, South Africa, Namibia, Liberia, UAE, Saudi Arabia, Korea, Taiwan and Japan with significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, Nickel, Aluminium, Power & Glass Substrate and foraying into electronics and display glass manufacturing.

Result Analysis:  Vedanta Limited  (CMP: Rs. 416 )

Result Update: Q4FY25

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Financial Performance:

Shareholding Pattern:

Particulars (In %)	Q4FY25	Q4FY24
Promoter	56.39	61.95
FIIs	11.66	9.24
DIIs	16.38	13.15
Public & Other	15.51	15.6
Government	0.07	0.07

Management Commentary:

• The company expects their oil and gas production to fall further in FY26 to 95-100,000 per barrel of oil equivalent per day.
• FY26 capex is estimated at $1.5-$1.7 billion. Of this, $0.65 to $0.7 billion will be allocated to aluminium and power, $0.4 to $0.45 billion to zinc, while the rest will be distributed to oil and gas and other requirements.
• Vedanta announced plans for a demerger, expected to complete by September 2025.
• The company has guided for a 3% increase in their FY26 aluminium production volumes to 2.5 to 2.6 million tonnes, compared to 2.4 million tonne in FY25. The company also aims to reduce their cost of production to $1,700 to $1,750 per tonne from $1,835 seen in FY25. This suggests a minimum 5% decrease in aluminium production costs.

Outlook:

Vedanta has reported Q4FY25 Financials reflecting improved EBITDA and PAT on a sequential and YoY basis, Vedanta enters FY26 with a cautious growth outlook. Capex is projected at $1.5–$1.7 billion, prioritizing aluminium, power, and zinc. Aluminium production is guided to increase by 3% to 2.5–2.6 Mt, alongside a targeted reduction in production costs to $1,700–$1,750/t from $1,835 in FY25. Oil & gas output is expected to moderate to 95–100 kboepd. Net debt stands at $6.2 billion, with leverage at 1.2x post Q4 deleveraging. The proposed business demerger, expected by September 2025, remains a key step in Vedanta’s portfolio simplification strategy, overall the company has outperformed its estimates. It has posted an EPS of ₹38.65 in FY25. The stock currently trading at a P/E of 10.8x and P/B of 3.96x.

Results:

Particulars (In Rs. Cr.)	Q4FY25	Q4FY24	Q3FY25	YoY%	QoQ%	FY25	FY24	VAR [%]
Net Sales	39789	34937	38526	13.9	3.3	150725	141793	6.3
Other Operating Income	666	572	589	16.4	13.1	2243	1934	16
Other Income	762	586	680	30	12.1	5544	5355	3.5
Total Income	41217	36095	39795	14.2	3.6	158512	149082	6.3
Total Expenditure	28989	26942	28011	7.6	3.5	110625	108529	1.9
EBIDT	12228	9153	11784	33.6	3.8	47887	40553	18.1
Interest	2583	2415	2442	7	5.8	9914	9465	4.7
EBDT	9645	6738	9342	43.1	3.2	37973	31088	22.1
Depreciation	2988	2743	2681	8.9	11.5	11096	10723	3.5
EBT	6657	3995	6661	66.6	-0.1	26877	20365	32
Tax	1630	1627	1315	0.2	24.0	5109	12426	-58.9
Deferred Tax	66	93	470	-29	-86.0	1233	400	208.3
PAT	4961	2275	4876	118.1	1.7	20535	7539	172.4

Segmental Revenue:

Particulars (In Rs. Cr.)	Q4FY25	Q4FY24	Q3FY25	YoY%	QoQ%	FY25	FY24	YoY%
Zinc, Lead and Silver	8805	7261	8297	21.3	6.1	32903	27925	17.8
Zinc – International	1108	634	1045	74.8	6.0	3918	3556	10.2
Oil & Gas	2658	3368	2636	-21.1	0.8	11044	17837	-38.1
Aluminium	15967	12393	15306	28.8	4.3	58522	48371	21.0
Copper	6138	5015	5803	22.4	5.8	23051	19730	16.8
Iron Ore	1527	2472	1865	-38.2	-18.1	6086	9069	-32.9
Power	1424	1420	1273	0.3	11.9	6159	6153	0.1
Others	2657	2547	2523	4.3	5.3	10080	10080	0.0

Source: Company website, EWL Research

 

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