Shares of Vedanta Ltd slipped sharply by 5.31% to ₹416.15 in early trade on Friday, April 4, despite the company reporting a robust operational performance for the fourth quarter of FY25. The stock declined ₹23.35 from its previous close of ₹439.50 on the NSE.
In its Q4 business update released on Thursday, Vedanta highlighted record-breaking milestones in multiple verticals. The company reported its highest-ever annual aluminium production at 2,421 thousand tonnes, up 2% YoY, while Q4 aluminium output also rose 1% to 603 kt. Its Zinc India operations achieved a record annual mined metal production of 1,095 kt, up 2%, driven by better plant availability. International zinc output rose sharply, with mined metal production up 52% YoY and 9% QoQ, mainly due to Gamsberg mine’s performance.
However, the drag came from the oil and gas segment, where gross production fell 19% YoY to 8.7 million barrels of oil equivalent, primarily due to lower output from Rajasthan and Ravva fields. This underperformance in a key revenue-generating segment dented sentiment.
The broader decline was further aggravated by macroeconomic headwinds. A surprise announcement by OPEC+ to boost oil output by 411,000 barrels per day in May triggered a sharp drop in global crude prices. Brent crude plunged over 6% to trade below $70 a barrel. Investors fear this move could deepen the supply glut, affecting upstream oil companies’ margins, including Vedanta’s oil and gas operations.
This combination of weak oil and gas figures and falling crude prices amid rising global supply has rattled investor confidence, resulting in the steep fall in Vedanta shares.
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