Vedanta’s Q4 Earnings: Profit Surges, Revenue Climbs, but Analyst Miss Raises Eyebrows

Vedanta Ltd, the metals and mining diversified conglomerate, posted a good set of fourth-quarter numbers ended March 2025, with consolidated net profit jumping 154% year-on-year to ₹34.83 billion. The number, however, fell short of IBES's estimate of ₹37.63 billion due to some softness from increased input costs and two-way commodity price movements.

The consolidated top line from operations of the company for the quarter was ₹397.89 billion, up by 14% from the comparable quarter last year. The drivers of growth in the quarter came mainly from greater volumes in both the zinc and aluminium businesses, with aluminium revenues rising to ₹159.67 billion from ₹123.93 billion in the comparable quarter previous year. Both copper business recorded gains, though oil & gas and iron ore segment revenues contracted on account of lower volumes as well as reduced prices.

Vedanta's EBITDA in the quarter jumped 31% year-on-year to ₹114.66 billion, while EBITDA margins widened to 28.3% from 24.7% in the previous year, driven by operational efficiencies across key verticals. While the year-on-year performance was strong, sequential profit declined, due to high costs in the aluminium business and volatility in global commodity markets.

The firm is undertaking a significant overhaul, seeking to demerge into five standalone listed companies by September 2025. The decision is likely to unlock value and improve focus within its diversified basket.

Vedanta's management and board are upbeat, and the majority of analysts have a "buy" or "hold" recommendation on the stock, which recovered 1% post-results after an eventful day of trading.

Source: CNBC-TV18, Moneycontrol, Economic Times