This prominent Indian multinational natural resources and technology conglomerate has delivered a remarkable return of approximately 376% to its investors in the past 5 years, showcasing its strong financial performance, strategic growth, and expanding footprint across the globe. Below are the company’s capex plans and the guidance.
Overview
Vedanta Limited, a subsidiary of Vedanta Resources Limited, is a global leader in natural resources, critical minerals, energy, and emerging technologies. With operations across India, Africa, the Middle East, and Asia, Vedanta is active in sectors including oil & gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminium, power, and glass substrate, while also expanding into electronics and display glass manufacturing. For over two decades, Vedanta has played a key role in nation-building.
With a market capitalization of Rs. 1,72,819.60 crores, the shares of Vedanta Limited are trading at the CMP of Rs. 441.95. The stock has given staggering returns of 376 percent in the past 5 years, despite its high volatility
The company is currently trading 16.1 percent less than its 52-week high of Rs. 526.95. And the company’s previous 52-week low stands at Rs 363.00; on average, the stock has given a Return of 36.84 percent CAGR in the past 5 years.
The company is also known for its dividend payout, with its dividend payout ratio standing at 9.8 percent. In the past year alone, I.e, in 2024, Vedanta Ltd. had declared an equity dividend amounting to Rs. 43.50 per share.
Capex plans and guidance
At a pivotal moment in its journey, Vedanta Limited is setting the stage for an ambitious transformation. The company has unveiled its strategic blueprint, “Vedanta 2.0,” aimed at positioning itself as a $100 billion global powerhouse in critical minerals, energy, and technology. This bold vision is backed by a robust capital expenditure plan and fresh guidance
Despite FY25 having strong global commodity demand, with primary aluminum up 2.7 percent and zinc up 2 percent. India outperformed global trends, with aluminum demand rising 12 percent YoY and zinc 6 percent YoY, driven by robust economic and infrastructure growth. While global volatility may persist due to US-China tariff tensions, Vedanta remains well-insulated, with over 50 percent of its aluminum and around 75 percent of its zinc sales within India. The outlook remains positive.
Aluminum
Vedanta maintained its cost leadership in Q4FY25, achieving a hot metal production cost (ex-alumina) of Dollar 920 per ton, the lowest in four years. While overall production costs rose due to high-cost alumina inventory carried over from previous quarters, the impact of declining alumina prices is expected to flow through in Q1 and Q2 of FY26, supporting improved margins ahead.
The company has outlined an ambitious production ramp-up in its FY26 guidance, targeting alumina output of 3–3.1 mtpa, with an exit run-rate of 4 mtpa and a long-term goal of reaching 5 mtpa by FY27. The Sijimali bauxite mine is expected to commence operations by Q2/Q3 FY26, with alternative bauxite sources already secured to mitigate potential delays. On the value-added products (VAP) front, Vedanta aims to increase the VAP share from 50 percent in FY25 to approximately 70 percent in FY26, driven by capacity expansions at its BALCO and Jharsuguda facilities.
Zinc
Vedanta expects Zinc India production to remain strong in FY26, with key projects driving future growth. The 160 kilo-tonnes per annum Debari roaster is set for commissioning in Q1 FY26, while a 510 kilo-tonnes per annum fertilizer plant is scheduled for Q4 FY26. The company is targeting 235–265 kilo-tonnes per annum of production in FY26, with the Phase-2 expansion at Gamsberg on track for commissioning in the second half of the fiscal year.
Other Verticles
In Oil & Gas, for FY26, production guidance is set at 95–100 thousand equivalent barrels of oil per day, with volume expected to improve from Q2 onward. Growth will be supported by the company’s ASP project, continued infill drilling, and contributions from discoveries. OALP blocks, which contributed 4 percent to FY25 output, are targeted to deliver 8 to 10 percent by Q4 FY26 and 20 to 25 percent over the next 18–24 months.
In the Power segment, the Meenakshi Plant’s remaining 700 MW capacity to be commissioned in H1 FY26. Athena Plant’s Unit-1 600 MW to be commissioned in Q1 FY26, followed by Unit-2 600 MW in Q4 FY26. And the Hot metal capacity expansion from 1.7 mtpa to 3.2 mtpa is expected by the end of FY26, with further expansion expected to 3.5 mtpa targeted by FY27.
Vedanta has committed to a $9.5 billion growth capex program, with $5.5 billion already invested. The remaining dollar 4 billion will be deployed over the next three years to drive expansion and strengthen backward integration across key businesses.
Major ongoing projects include the commissioning of Train 2 at the Lanjigarh refinery and the 435 ktpa smelter expansion at BALCO. In mining, the Sijimali bauxite mine is expected by Q2/Q3 FY26, while the Kuraloi and Ghogharpalli coal mines are set for Q3 and Q4 FY26, respectively. In zinc, key investments include the Debari roaster and a 510 ktpa fertilizer plant. Zinc International’s Phase-2 expansion is also on track for commissioning in H2 FY26. Power capacity will be significantly enhanced through the Meenakshi and Athena plant expansions, reinforcing Vedanta’s integrated operations.
While Vedanta has not provided explicit EBITDA guidance for FY26, management anticipates around 20 percent operational growth driven by higher volumes, improved cost efficiency, and benefits from the Next-Gen Efficiency Program (NEP). Additional upside is expected if commodity prices see a recovery during the year.
Written By Likesh Babu S
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