Vedanta Ltd.'s profit in the fourth quarter of the financial year fell quarter-on-quarter, but met estimates.
The metal producer's net profit stood at Rs 3,483 crore in the quarter ended March, as compared to a profit of Rs 3,547 crore in the previous quarter, according to an exchange filing on Wednesday. That compares with the Rs 3,456-crore estimate of analysts polled by Bloomberg.
Vedanta Q4 FY25 Highlights (Consolidated, QoQ)
Revenue up 1.65% at Rs 40,455 crore vs Rs 39,795 crore (Estimate: Rs 39,593 crore).
Ebitda down 2.7% at Rs 11,466 crore vs Rs 11,784 crore (Estimate: Rs 12,356 crore).
Margin at 28.34% vs 29.61% down 126 bps (Estimate: 31.2%).
Net profit down 1.8% at Rs 3,483 crore vs Rs 3,547 crore (Estimate: Rs 3,456 crore).
What Impacted Earnings
The revenues of Vedanta's India operations of zinc, lead and silver grew 4% to 15% quarter-on-quarter. The company's zinc international segment saw a 6% uptick in revenues while oil and gas revenues stayed flat at Rs 2,658 crore. The company's power, copper and aluminium segments saw a 4% to 11% uptick in sales, however, it was the copper segment that drove down revenue growth as sales fell 6% quarter-on-quarter to Rs 6,138 crore.
A muted topline increase, coupled with an 8% increase in material costs are what kept away the company's margins from expanding.
Here's How Different Segments Of Vedanta's Operations Performed In Q4 and FY25
Aluminium Business
Q4 FY25 Performance: Aluminium production in Q4 FY25 fell 1.5% sequentially to 604 kilo tonne, and stayed flat on an annual basis. The company's cost of production during the quarter also stood higher.
FY26 Guidance: The company has guided for a 3% increase in their FY26 aluminium production volumes to 2.5 to 2.6 million tonnes, compared to 2.4 million tonne in FY25. The company also aims to reduce their cost of production to $1,700 to $1,750 per tonne from $1,835 seen in FY25. This suggests a minimum 5% decrease in aluminium production costs.
Zinc International Business
Q4 FY25 Performance: Metal in concentrate production increases both on an annual and sequential basis to 50 kilo tonne in Q4, and 178 kilo tonne in FY25. The cost of production stood at $1,055 for Q4 FY25.
FY26 Guidance: The company target production of 180-200 kiloton in FY26. It does, however, expect the cost of production in the segment to increase to $1,250 to $1,350 per tonne versus $1,135 in FY25.
Oil & Gas Business
Q4 FY25 Performance: Gross production continued to decline on a quarterly and annual basis. The total production in FY25 was 19% lower year on year. The operating expenses per barrel equivalent also increased to $17 per unit in Q4.
FY26 Guidance: The company expects their oil and gas production to fall further in FY26 to 95-100,000 per barrel of oil equivalent per day.
Net Debt
Vedanta's consolidated net debt stood 7% lower quarter-on-quarter at Rs 53,251 crore versus Rs 57,358 crore as of December 2024.
The company has now effectively reduced its net debt to Ebitda multiple to 1.2 times currently versus 1.9 times in Q1 FY24. They target to improve the leverage ratio further below 1 times in the near term. The company expects its cash flow pre growth capex at $5 billion in the near term as well.
Capex
FY26 capex is estimated at $1.5-$1.7 billion. Of this, $0.65 to $0.7 billion will be allocated to aluminium and power, $0.4 to $0.45 billion to zinc, while the rest will be distributed to oil and gas and other requirements.
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