Vedanta Ltd (BOM:500295) Q4 2025 Earnings Call Highlights: Record Profits and Strategic ...

In This Article:

  • Annual Revenue: INR 150,725 crores, up 10% year-on-year.

  • EBITDA: INR 43,541 crores, up 37% year-on-year.

  • Quarterly Revenue (Q4 FY '25): INR 39,789 crores, up 14% year-on-year.

  • Quarterly EBITDA (Q4 FY '25): INR 11,168 crores, 1% growth year-on-year.

  • EBITDA Margin (Q4 FY '25): 35%, highest in the last 12 quarters.

  • Profit After Tax (PAT) (Q4 FY '25): INR 4,961 crores, up 118% year-on-year.

  • Annual PAT: INR 25,535 crores, up 172% year-on-year.

  • Net Debt: INR 53,251 crores, decreased by more than INR 3,000 crores year-on-year.

  • Net Debt-to-EBITDA Ratio: Improved to 1.2x from 1.5x in FY '24.

  • Liquidity Position: INR 2,602 crores, up 34% year-on-year.

  • Aluminum Production: Highest ever annual metal production of 2,422 kt.

  • Zinc India Mined Metal Production: 1.095 million tonnes annually.

  • Zinc India Refined Metal Production: 1.052 million tonnes annually.

  • Oil and Gas Production (Q4 FY '25): 96.2 kbpod.

  • Iron Ore Production: Increased 24% year-on-year and 40% quarter-on-quarter.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Vedanta Ltd (BOM:500295) achieved its highest annual revenue of INR 150,725 crores, marking a 10% year-on-year increase.

  • The company reported its second highest EBITDA of INR 43,541 crores, reflecting a 37% year-on-year growth.

  • Vedanta's aluminum business achieved its highest ever annual metal production of 2,422 kt, surpassing volume guidance for FY '25.

  • The company secured a seller delivery agreement for over 1 gigawatt of renewable energy, aiming to significantly reduce emissions.

  • Vedanta Ltd (BOM:500295) is making progress on its $9.5 billion capital expenditure program, with $5.5 billion already spent, supporting strategic projects on volume expansion and backward integration.

Negative Points

  • Global economic uncertainty due to U.S. tariffs and retaliatory measures could impact Vedanta's performance.

  • The company faces challenges in ramping up alumina production, with delays in achieving the targeted run rate.

  • Vedanta's oil and gas production was impacted by natural declines in certain fields, affecting overall output.

  • The demerger process involves complex approvals, including the transfer of mining leases, which could delay completion.

  • Despite achieving high revenue, Vedanta Ltd (BOM:500295) fell short of its EBITDA target for FY '25 due to higher alumina prices and other operational challenges.

Q & A Highlights

Q: What is the current status and future outlook for Vedanta's alumina production capacity? A: Deshnee Naidoo, CEO, explained that the first 1.5 million tonne train is in production, with current production just under 2 million tonnes. The goal is to reach a run rate of close to 4 million tonnes by the end of the fiscal year, with total production for the year just over 3 million tonnes. Sunil Gupta, COO of Vedanta Aluminum, added that they are prepared to source bauxite from various domestic and imported sources to meet production targets.