Vedanta LtdQ2 FY25
Vedanta Ltd Q2 FY25 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹310P/E: 12.3Market Cap: ₹1.1L CrSector: Diversified Metals
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
Yes
Order
N/A
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 3- →Zinc India: Targeting commissioning of a 160,000 ton per annum roaster and expansion to over 1.2 million tons refined metal production.
- →Zinc International: Gamsberg Phase-2 project nearing completion, increasing mine capacity to 525,000 tons/year.
- →Oil & Gas: Targeting 95,000 to 100,000 barrels of oil equivalent per day for FY ’26 with volume gains from new well drilling and ASP injections.
- →Aluminum: Aiming 3 to 3.1 million tons alumina production with expansion projects like Lanjigarh Train II and Balco smelter. Expected decline in alumina cost per ton.
- →Power: Adding 1,300 MW of new capacity in Q2 FY ’26 with Meenakshi and Athena power plants fully commissioning units.
- →Bauxite: Production ramp-up at Sijimali mine starting Q4 FY ’26 to supply around 1-1.5 million tons of bauxite annually.
- →Exploration: Focus on Northeast and KG Deepwater for new drilling and resource potential.
Margin guidance
Category 3- →Vedanta Limited reported a 13% YoY growth in adjusted PAT to Rs. 5,000 crores in Q1 FY '26, indicating a positive earnings trajectory.
- →EBITDA margin expanded to 35%, the highest in 13 quarters, showing strong operational profitability.
- →The company targets volume growth and margin expansion across all businesses, with key expansions like Lanjigarh Train II and Balco smelter commissioning imminent.
- →Zinc India aims to commission a 160,000 ton roaster to support refined metal production exceeding 1.2 million tons annually.
- →Zinc International’s Gamsberg Phase-2 project (80% complete) will add 4 million tons run of mine post-ramp-up by FY '26 end, boosting earnings.
- →Oil & Gas division targets 95,000-100,000 barrels per day with enhanced recovery techniques (ASP) to arrest decline, supporting future profits.
- →Power business will add 1,300 MW capacity this year, improving realized power sales and margins.
- →Overall, the company is confident of sustaining momentum and delivering best financial performance for FY '26 amid a complex macro environment.
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Fundraise plans
Yes- →Vedanta Limited raised Rs. 5,000 crores via Non-Convertible Debentures (NCDs) and other loans at favorable terms in Q1, reflecting strong credit strength.
- →The company monetized 1.6% stake in Hindustan Zinc, raising over Rs. 3,000 crores in Q1.
- →Net debt stood at Rs. 58,220 crores as of June 2025, down Rs. 3,100 crores YoY, supported by strong internal accruals and targeted capital actions.
- →The net debt to EBITDA ratio improved to 1.3x from 1.5x last year, highlighting improved capital management.
- →No explicit mention of planned new equity fundraising in the near term.
- →VRL (Vedanta Resources Limited) aims to deleverage $3 billion over three years, with $770 million repayment refinance needed this fiscal via refinancing and/or dividends (subject to Board approval).
- →Overall, the company is focused on deleveraging and managing debt efficiently rather than raising new, large-scale debt or equity immediately.
Order book
The document does not explicitly mention the current or expected orderbook/pending orders for Vedanta Limited. However, it provides insights into ongoing and upcoming projects which imply a strong project pipeline:
- Investment of about $2 billion planned for Saudi copper projects including a 400,000 tons per annum copper smelter and refinery and a 300,000 tons copper rod project.
- Zinc India commissioning a 160,000 ton per annum roaster at Debari and capacity expansion to 1.2+ million tons refined metal.
- Zinc International’s Gamsberg Phase-2 project to increase capacity to 525,000 tons per annum.
- Oil and gas activities including ASP injection, deepwater drilling plans in KG Basin, and unconventional block exploration.
- Power business adding 1,300 MW in FY26 with recent commissions at Meenakshi and Athena plants.
- Aluminum expansion projects at Lanjigarh and Balco smelters targeting capacity increases.
These indicate Vedanta's strong operational and investment pipeline rather than a classical orderbook.
Capex plans
Yes- →Vedanta plans to invest about $2 billion in the Saudi copper projects, including a 400,000 tons per annum copper smelter and refinery, and a 300,000 tons copper rod project.
- →Zinc International's Gamsberg Phase-2 project is nearly 80% complete, targeting mechanical completion by December 2025, adding 4 million tons run of mine.
- →Hindustan Zinc Board approved first phase of capacity expansion to 2 million metric tons, investing $1.4 billion to add 250,000 tons capacity.
- →Vedanta aims to expand aluminum capacity to about 3.1 million tons and alumina capacity to 6 million tons by FY'27 (18 months timeline).
- →Power business is adding 1,300 MW new capacity in Q2 FY'26, with recent commissioning of 950 MW at Meenakshi and Athena plants.
- →Mining capital for Gamsberg Phase-2 is higher due to increased waste stripping capital requirements.
- →Total capital investment plan augmented from $9.5 billion to $11 billion, with $5.9 billion already spent as of June 2025.
How does Vedanta Ltd rank vs peers in Diversified Metals?
Pro feature1Vedanta Ltd
Rev 3Mar 3
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