Vedanta Q3 Profit Soars 76% YoY to ₹3,547 Crore on Higher Income

 Vedanta Ltd posted a strong performance in the third quarter of FY25, reporting a 76.2% year-on-year (YoY) jump in consolidated net profit to ₹3,547 crore. The significant increase was driven by higher income and improved market conditions. The company's revenue also saw an uptick, supported by higher premiums and favorable pricing trends. However, certain segments like oil and gas continued to face challenges. 

Vedanta’s share price surged 1.84% higher, ending at ₹440.40 on Friday. Vedanta revealed that its consolidated revenue stood at ₹38,526 crore, reflecting a 4% rise quarter-on-quarter (QoQ) and a 10% increase YoY.

The company’s total expenses also rose during the quarter, reaching ₹33,134 crore, compared to ₹32,215 crore in the previous year. Despite higher costs, the company outperformed analysts’ estimates, which had pegged net profit at ₹3,224 crore.

Arun Misra, Executive Director of Vedanta, said, “We have delivered our highest-ever third-quarter EBITDA. Our strategic focus on cost optimization and production ramp-up across our key businesses has helped us continue delivering this outperformance.”

Vedanta’s aluminium business recorded its highest-ever quarterly metal production at 613 kilotonnes, reflecting a 2% increase. However, the cost of production for aluminium rose to $1,878 per tonne, up from $1,735 per tonne a year ago, primarily due to higher alumina costs.

The company's oil and gas segment struggled, with total revenue dropping 22% to ₹2,636 crore. Production declined by 19% to 99,400 barrels of oil equivalent per day, while operating expenses per barrel rose by 17%.
Vedanta’s India-based zinc business saw a 2% sequential dip in mined metal production, which stood at 265 kilotonnes. Refined metal production remained stable at 259 kilotonnes, while the cost of production fell 5% YoY to $1,041 per tonne.

On the international front, Vedanta’s Zinc International segment posted a 12% growth in production, achieving its lowest-ever cost of production at $1,002 per tonne. This growth was largely driven by its Gamsberg operations, which are set to complete phase 2 expansion in the latter half of the next fiscal year.

Vedanta’s gross debt stood at ₹78,496 crore as of December 31, 2024. The company’s parent firm, Vedanta Resources Ltd (VRL), successfully restructured $3.1 billion in bonds over the last four months, extending maturities up to eight years. This move is expected to strengthen the company’s financial position and provide greater liquidity in the long term.

Conclusion

Vedanta’s Q3 results reflect a strong financial performance, aided by higher revenues and improved market pricing. While certain segments like aluminium and Zinc International showed positive growth, the oil and gas segment remains a weak spot. Investors will be keenly watching how Vedanta navigates through potential challenges in the coming quarters.