Vedanta Q4 Results Review: Motilal Oswal Maintains 'Neutral' Stance, Cuts Target Price Post Inline Performance

Vedanta reported consolidated net sales of Rs 405 billion (+14% YoY and +3% QoQ), in line with our estimates. The QoQ growth was driven by favorable market prices and higher premiums. Vedanta's consolidated Ebitda stood at Rs 115 billion (+31% YoY and +3% QoQ) against our estimate of Rs 108 billion. Ebitda was driven by higher volumes and premiums, partially offset by input commodity inflation. Ebitda margin for Q4 FY25 stood at 28.3%, compared to 28.4% in Q3 FY25 and 24.7% in Q4 FY24.

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Motilal Oswal Report

Vedanta Ltd.'s Q4 FY25 performance came largely in line across segments. Capex plans are progressing well and will likely lead to further cost savings.

Management targets to maintain strong growth in earnings, led by the upcoming capacity, which will produce higher value-added-products. Vedanta remains firm on its deleveraging plans, and going forward, higher cash flows will support both its expansion plans and deleveraging efforts.

The stock currently trades at 4.9x FY27E EV/Ebitda. We have marginally cut our estimates for FY27. We reiterate our Neutral rating on the stock with an SoTP-based target price of Rs 470.

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