Vedanta Limited is a major Indian multinational company in the natural resources sector, headquartered in Mumbai. A subsidiary of Vedanta Resources Limited, it operates across a diversified portfolio that includes mining, processing, and selling zinc, lead, silver, copper, aluminum, iron ore, and oil and gas. The company also engages in commercial power generation, steel manufacturing, and port operations in India, with additional ventures in glass substrate manufacturing in South Korea and Taiwan. As of April 5, 2025, Vedanta has a significant global presence, spanning India, South Africa, Namibia, Ireland, Liberia, and the UAE, with India accounting for approximately 65% of its revenue.
Business Overview
Vedanta’s operations are structured around key segments:
- Aluminum: India’s largest primary aluminum producer with a 46% domestic market share, operating a 2 MTPA refinery in Lanjigarh, Odisha, and smelters in Jharsuguda and BALCO (Korba).
- Zinc-Lead-Silver: Through Hindustan Zinc Limited (HZL), it’s a global leader, with operations in India and internationally (e.g., Gamsberg, South Africa).
- Oil & Gas: Via Cairn Oil & Gas, Vedanta is India’s largest private-sector crude oil producer, contributing 25% of the country’s output.
- Other Segments: Includes copper (currently curtailed in Tuticorin), iron ore (e.g., Goa operations), steel, and power generation (e.g., Talwandi Sabo).
The company’s strategy focuses on operational excellence, cost efficiency, and expansion through organic growth and acquisitions, while maintaining a first-quartile cost position in zinc and aluminum globally. It’s also pursuing a demerger into five independent entities—aluminum, oil & gas, power, steel, and base metals—to unlock value, with shareholder approval secured in February 2025, though the process faced a setback from the National Company Law Tribunal (NCLT) in March 2025 over undisclosed liabilities.
Recent Financial Performance (Q3 FY25)
Vedanta’s Q3 FY25 (October-December 2024) results, announced on January 31, 2025, reflect robust growth:
- Revenue: Rs 38,526 crore, up 10% YoY and 4% quarter-on-quarter (QoQ), driven by higher volumes and commodity prices.
- EBITDA: Rs 11,284 crore, a 30% YoY increase, with a margin of 34% (up 517 basis points YoY), the highest Q3 EBITDA ever, attributed to cost efficiencies and aluminum/zinc performance.
- Net Profit: Rs 4,876 crore (before exceptional items), up 70% YoY, though consolidated profit after tax was Rs 3,547 crore, reflecting a 76% YoY rise but an 18.5% QoQ drop.
- Debt: Net debt stood at Rs 57,358 crore, with a net debt-to-EBITDA ratio of 1.4x (improved from 1.7x in Q3 FY24). Cash and equivalents rose 66% YoY, supported by Rs 6,766 crore in pre-capex free cash flow.
Operationally, aluminum production hit a record 613,000 tonnes (up 2% YoY), and alumina output reached 505,000 tonnes (up 7% YoY). However, Q4 production updates (released April 2025) showed aluminum at 603,000 tonnes, slightly down QoQ, amid tariff concerns.
Stock Performance and Market Position
As of April 5, 2025, Vedanta’s stock has faced pressure:
- Share Price: Around Rs 401-410 (down 8.63% on April 4 from Rs 439.55), reflecting a 7.6% drop linked to U.S. tariff fears (25% on foreign imports, announced March 2025). The 52-week range is Rs 301.70 to Rs 527.
- Market Cap: Approximately Rs 1,57,042 crore ($19 billion USD).
- Returns: Up 29.4% over the past year but down 12.33% in the last three months, per BSE data.
Analysts remain mixed: Emkay Global initiated a “Buy” rating (target Rs 575) in March 2025, while tariff-related uncertainty has tempered sentiment. Posts on X highlight a 71.36% one-year return as of March 30, 2025, with a P/E of 17.8.
Shareholding Pattern (as of December 31, 2024)
- Promoters: 56.38%, led by Anil Agarwal and family via Vedanta Resources, down from 59.31% in June 2024.
- FIIs: 12.45%, reduced amid global trade concerns.
- DIIs: 17.82%, with mutual funds steady.
- Public: 13.35%.
Vedanta faces headwinds from U.S. tariffs (impacting exports), commodity price volatility, and a high debt burden—though parent Vedanta Resources restructured $3.1 billion in bonds by March 2025, cutting interest costs by 250 basis points. The demerger delay (timeline extended to September 2025) and NCLT rejection add complexity. Positively, its focus on aluminum (targeting 3.1 MTPA by FY27), zinc expansion (Gamsberg Phase 2), and sustainability (e.g., EcoZen low-carbon zinc) supports long-term growth. Analysts project a share price range of Rs 450-600 by end-2025, contingent on commodity trends and demerger progress.
Disclaimer: This article reflects data available as of April 5, 2025, updated through March 31, 2025, from stock exchange filings, company announcements, and verified sources. Financials and shareholding details may shift with new disclosures. This content is for informational purposes only and not investment advice; readers should consult official sources for decision-making.
