Vedanta

Vedanta is embarking on 'Vedanta 2.0', aiming to transform into a $100 billion company and a global leader in critical minerals, energy, and technology. This vision is supported by a $9.5 billion capital expenditure program, with $5.5 billion already spent, and the remaining $4 billion to be invested over the next three years. The company's strategy focuses on volume expansion, backward integration, and cost optimization, positioning it to benefit from India's robust economic growth, which is forecasted at over 6% for FY26 despite global uncertainties.

For FY25, Vedanta achieved its highest annual revenue of ₹150,725 crores, marking a 10% year-on-year increase. EBITDA reached its second-highest level at ₹43,541 crores, up 37% year-on-year, with an annual EBITDA margin of 34%. Q4 FY25 also demonstrated strong performance, with revenue of ₹39,789 crores (up 14% YoY) and EBITDA of ₹11,618 crores (up 30% YoY), resulting in a 35% EBITDA margin, the highest in the last 12 quarters. The Aluminum business recorded its highest ever annual metal production of 2,422 kt, and Zinc India achieved its highest ever annual mined metal production of 1.095 million tons.

While LME prices for zinc and aluminum are currently lower than their FY25 peaks, input costs have also seen a material decline. For instance, aluminum prices declined by approximately $300 per ton, and alumina prices dropped by around $450 per ton. The Aluminum business achieved a hot metal production cost (excluding alumina) of $920 per ton in Q4, its lowest in four years, and an EBITDA margin of $880 per ton, up 47% YoY. Zinc India's production cost improved by 5% YoY to $994 per ton in Q4. The company expects further cost optimization in FY26 due to softening alumina and power costs.

Vedanta is actively commissioning several key growth projects. The Lanjigarh Refinery Train 2 is on track for commissioning in Q1 FY26, with an exit run rate targeting close to 4 million tons by end of FY26 and 5 million tons by FY27. The BALCO smelter expansion (435,000 tons per annum) is targeted for H1 FY26. In Zinc India, a 160,000 tons per annum roaster at Debari will be commissioned in Q1 FY26, and a 510,000 tons per annum fertilizer plant in Q4 FY26. ESL's hot metal capacity is set to increase from 1.7 million tons to 3.2 million tons by FY26 end, with further debottlenecking to 3.5 million tons by FY27. The Sijimali bauxite mine is expected to commence operations by Q2 FY26, and Kuraloi and Ghogharpalli coal mines by Q3 and Q4 FY26, respectively.

Vedanta successfully reduced its net debt by over ₹3,000 crores YoY to ₹53,251 crores as of March 2025, improving its net debt-to-EBITDA ratio to 1.2x from 1.5x in FY24. The parent company, Vedanta Resources (VRL), has seen its debt decrease to $5 billion, the lowest in a decade, and aims for a $3 billion debt target within two years. VRL's FY26 cash requirements of $1.4-1.5 billion are expected to be met through a $400 million brand fee and an estimated $800 million in dividends, targeting a $600 million deleveraging for the fiscal year. The company also completed a QIP of ₹8,500 crores, an OFS for Zinc shares of ₹3,150 crores, and refinanced VRL's $3.1 billion bond portfolio.

The demerger plan is progressing, with the company anticipating completion by September 2025, following favorable shareholder and creditor voting and NCLT approval. Vedanta remains committed to ESG principles, with safety as a core value and a zero-fatality goal. In FY25, the company secured power delivery agreements for over 1 gigawatt of renewable energy, aiming for significant emission reductions. Vedanta Aluminum and Hindustan Zinc achieved top rankings in the S&P Global Corporate Sustainability Assessment, reflecting strong progress in sustainability.