Vedanta Limited has reported a remarkable performance for the fourth quarter of FY25, with a 154% year-on-year increase in consolidated net profit, reaching ₹3,483 crore. This surge is attributed to higher commodity prices, particularly in aluminium and zinc, and effective cost optimization strategies.
Financial Highlights:
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Net Profit: The company’s net profit for Q4 FY25 stood at ₹3,483 crore, up from ₹1,369 crore in the same period last year.
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Revenue: Consolidated revenue from operations rose 14% year-on-year to ₹40,455 crore, compared to ₹35,509 crore in Q4 FY24.
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EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 30% to ₹11,618 crore, with an improved EBITDA margin of 35%, up from 30% in the previous year.
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Net Debt: As of March 31, 2025, Vedanta’s net debt stood at ₹53,251 crore, with a net debt to EBITDA ratio of 1.2x.
Operational Performance:
The growth in net profit was primarily driven by higher aluminium and zinc output, along with effective cost optimization efforts. The company reported a 19.6% increase in aluminium prices and a 17.5% rise in zinc prices during the quarter. Aluminium remains Vedanta’s largest revenue source, accounting for 40% of its total earnings, followed by zinc and copper.
Strategic Initiatives:
Vedanta is focusing on growth through key projects like the Lanjigarh expansion and Sijimali Bauxite Mine. These initiatives aim to further lower costs and enhance profitability in FY26. The company is also prioritizing growth through disciplined expansion, operational excellence, and exploring opportunities along the value chain.
Market Outlook:
Analysts have noted a bullish trend for Vedanta’s stock, with a potential breakout above the ₹421 level, which could pave the way towards ₹460. The company’s strong financial performance and strategic initiatives position it well for sustained growth in the coming quarters.
Vedanta’s robust Q4 FY25 results underscore its operational efficiency and strategic focus on margin expansion and deleveraging. With a strong balance sheet and promising growth prospects, Vedanta is poised for continued success in the mining and metals sector.