Vedanta Limited

Vedanta Ltd is a diversified natural resource group engaged in exploring, extracting and processing minerals and oil & gas. The group engages in the exploration, production and sale of zinc, lead, silver, copper, aluminium, iron ore and oil & gas. It has presence across India, South Africa, Namibia, Ireland, Liberia & UAE.

Its other businesses includes commercial power generation, steel manufacturing & port operations in India and manufacturing of glass substrate in South Korea and Taiwan.

Business segments
Vedanta Ltd is a diversified natural resource group
engaged in exploring, extracting and processing
minerals and oil & gas. The group engages in the
exploration, production and sale of zinc, lead, silver,
copper, aluminium, iron ore and oil & gas. It has
presence across India, South Africa, Namibia,
Ireland, Liberia & UAE.
Its other businesses includes commercial power
generation, steel manufacturing & port operations
in India and manufacturing of glass substrate in
South Korea and Taiwan.
1) Aluminium (38% in 9M FY25 vs 36% in FY23): The
company is India’s largest primary aluminium producer
with a 46% domestic market share.
2) Zinc, Lead and Silver (24% in 9M FY25 vs 26% in FY23):
a) India: The company holds a 65% stake in Hindustan Zinc
Ltd (HZL) and its integrated zinc operations hold 75%
market share in India’s primary zinc market.
b) International: The company operates one of the world’s
largest zinc deposits, with 5.6 MTPA mining capacity and
290 KTPA smelting capacity across South Africa and
Namibia.
3) Copper (15% in 9M FY25 vs 12% in FY23): The company
is among India’s largest copper producers, holding a 20%
market share, serving housing wire, cable, transformer,
and electrical profile industries.
4) Oil & Gas (8% in 9M FY25 vs 10% in FY23): It operates
in Oil & Gas sector through Cairn India, the largest
private oil & gas exploration and production company in
India
5) Power (4% in 9M FY25 vs 5% in FY23): The company
ranks as the 2nd-largest private player in the Indian
power sector, with a total capacity of 12 GW across IPP and
CPP operations.
6) Others (7% in 9M FY25 vs 11% in FY23)

Shareholding Pattern (March 2025)

Financial Summary

Synopsis of Financials:

Financial performance and capital structure
Consolidated (Vedanta Ltd)
Q2 revenue: INR 39,218 cr (record Q2; +6% YoY)
H1 revenue: INR 76,652 cr (record H1; +6% YoY)
EBITDA margin: 34%, up ~70 bps YoY, attributed to
“favorable pricing, marketing premiums, exchange rate
gains and continued cost efficiencies.”
PAT (pre-exceptional): INR 5,026 cr (+13% YoY).
Reported PAT: INR 3,479 cr due to net exceptional loss
INR 1,547 cr (post tax).

FINAL OUTLOOK: (TIM: HOLD| LTP: 628.00)

Summary:
Vedanta Limited has delivered strong operational performance despite volatility in
global commodity markets. FY25 revenue increased to ₹1,52,968 Cr with an EBITDA
margin improving to 28%. Profit recovered sharply to ₹20,535 Cr after a weak FY24,
reflecting stronger realizations in aluminium, copper, and zinc.
The company continues to remain a diversified natural resources leader, with strong
positions in metals, oil & gas, and power. However, the business is highly sensitive to
commodity prices, and large ongoing capex has kept leverage high. The VRL (parent
company) debt structure also remains a key investor concern, despite recent progress in
deleveraging. Nevertheless, improving margins, stable global prices, and operational
efficiencies support a reasonably positive medium-term outlook.
Key Highlights:
Q2 FY26 Performance
Revenue: ₹39,218 Cr (+6% YoY)
EBITDA: ₹11,612 Cr (+12% YoY)
EBITDA Margin: 34% (+70 bps YoY)
PAT Before Exceptionals: ₹5,026 Cr
Reported PAT: ₹3,479 Cr (due to ₹1,547 Cr exceptional loss)
Final Verdict: HOLD
Vedanta remains a strategically important, high-cash-flow commodity major, but
elevated debt levels, exposure to global price cycles, and heavy capex commitments limit
near-term upside.
Investors should HOLD existing positions while monitoring deleveraging progress and
margin improvement over FY26