Vedanta Ltd Q1 FY27 Earnings Analysis

Future growth expectations in sales/revenue/volumes for Vedanta Limited based on the document are: - Continued volume growth across core businesses driving record revenues (INR1.74 lakh crores in FY26). - Aluminium business expansion with production ramp-up at Lanjigarh refinery, targeting close to 4 million tons per annum alumina. - Zinc India aiming to maintain record mined metal production above 1 million tons. - Zinc International increasing mined metal production by 27% YoY, targeting 450,000+ tons of zinc metal with Gamsberg Phase 2 ramp-up and new projects. - Power sales growth of 30% YoY expected with Athena and Meenakshi plants. - Steel production at Bokaro targeting higher annual outputs beyond current record (1.3 million tons). - Continued organic growth in each entity post de-merger with capex focused on 2x or 3x growth stories. - Critical minerals projects set to add to volumes by 2030 after exploration and development phases. - Overall company targeting value-accretive, disciplined growth with strong cash flows funding expansion.

- Zinc International EBITDA expected to grow from $300 million in FY27 to around $500 million, driven by Gamsberg underground expansion and phased capacity growth by 2030. - Gamsberg underground has a Resource & Reserve (R&R) almost as large as Hindustan Zinc, with higher grade (~7%) ores. Mining and smelting projects for critical minerals expected to add value by 2030. - Zinc International’s $4 billion capex largely funded internally via self-generated cash flows post current projects, reducing reliance on external financing. - Vedanta’s overall EBITDA margins improved significantly (44% Q4 FY26), with highest-ever revenues and PAT in FY26, reflecting strong operational performance and cost efficiencies. - Aluminium business delivered record alumina and aluminium production with a 38% margin and lowest hot metal cost in 5 years, supporting future EPS growth. - Power and other growth businesses (oil and gas, steel) driving diversified revenue and profit streams to fuel expansion. Overall, medium-term EPS growth is expected from volume ramp-ups, cost improvements, and new projects maturing by around 2030.

- Zinc International (Zinc Intl) has a large capex of $4 billion focused on Gamsberg underground expansion and Phase 3 development, expected to boost capacity beyond 500 kt zinc production by ~2030. - Zinc Intl's current Gamsberg project is 94% complete; commissioning and ramp-up expected this quarter with full ramp-up over 12-18 months. - Copper business exploring expansion with a rod mill plant (~$30 million) ready by September 2026 and a potential copper smelter project in Saudi Arabia pending government incentives. - Vedanta plans a $2 billion capex in Saudi Arabia with 75% debt and 25% equity funding; incentives and subsidies discussed with local govt. - Iron & Steel segment has key projects like the Jharsuguda and Balco billet lines, and capacity doubling underway. - Critical minerals: 10 composite licenses acquired; 3 blocks in advanced exploration with mining decisions expected by 2027-28, projects likely operational by 2030. - Sustained capital investment supported by strong free cash flow and internal accruals.

- For FY27, Vedanta Resources requires approximately USD 0.3 billion in new loans, plus an intercompany loan (ICL) amounting to about USD 0.5 billion, totaling around USD 1 billion funding needs. - Funding sources include brand fees (~USD 400 million) and dividend payouts (~USD 600 million) from Vedanta India, with expected organic de-leveraging of USD 0.5-0.6 billion. - Post de-merger, differentiated capital structures across the five entities may attract domestic and global anchor investors for equity funding, providing additional avenues for capital raising and de-leveraging. - Capital expenditures for growth projects (e.g., Zinc expansion, Saudi Arabia projects) are largely planned to be funded through self-generated cash flows, equity contributions (typically 25%), and debt (75%), supported by government incentives where applicable. - No explicit mention of immediate large-scale fundraising through new equity or debt beyond ongoing capex funding and structured capital allocation strategies.

The provided pages (especially page 19) of the Vedanta Limited document do not contain specific information related to the current or expected order book or pending orders. The content primarily focuses on: - Mine approvals and timelines, especially for Sijimali and coal mines like Kuraloi and Ghogharpalli. - Updates on refinery run rates and production capacity. - Discussions on regulatory approvals and community engagement. - Financial and operational performance highlights. - Details on the de-merger and capital structure. - Responses to investor questions on acquisitions, dividend policies, and debt management. No explicit mention or data regarding order books or pending orders is found in these excerpts. If you need detailed information on the order book or pending orders, it may be available in other sections or documents from Vedanta Limited.