Vedanta Ltd. is undergoing a major transformation with strong financial growth, a bold demerger strategy, and a significant push towards renewable energy. This article explores the company’s performance highlights for FY25, its ambitious green energy goals, and the restructuring plan that will create five focused entities across key sectors like aluminium, oil & gas, power, and base metals.
Financial Highlights & Renewable Energy Expansion
The company reported a 13.92 percent YoY increase in revenue from Rs. 35,509 Crore in Q4FY24 to Rs. 40,455 Crore in Q4FY25. On a QoQ basis, the company reported an increase of 3.42 percent in revenue from Rs. 39,115 Crore in the previous quarter.
Their Net profit saw an increase of 118.06 percent YoY from Rs. 2,275 Crore to Rs. 4,961 Crore for the same period. On a QoQ basis, the company reported an increase of 1.74 percent in Net profit from Rs. 4,876 Crore in the previous quarter.
Vedanta showed strong performance across all its key businesses in FY25. In aluminium, production hit a new record of 2,422 kilo tonnes, growing 2 percent from last year, while alumina production went up 9 percent with help of a new unit.
Hindustan Zinc became the world’s largest integrated zinc producer, with record production of mined and refined zinc. Costs also dropped to a four-year low. At Zinc International, production costs fell by 13 percent compared to last year. In iron ore and steel, the company produced 6.2 million tonnes, up 12 percent YoY, and copper cathode output also rose 6 percent to 149 kilotonnes.
Vedanta Ltd has increased its renewable energy capacity to 1.03 GW, aiming for 2.5 GW by 2030, using a mix of solar, wind, and pump storage. This capacity is expected to offset over 6 million tonnes of carbon emissions annually, equivalent to the impact of 350 million trees. The company targets net-zero emissions by 2050.
This capacity is expected to offset over 6 million tonnes of carbon emissions annually, equivalent to the impact of 350 million trees. The company targets net-zero emissions by 2050.
Also read: Power stock hits 5% upper circuit after securing ₹400 Cr transmission project from PowerGrid
Vedanta Group Structure & Demerger Plans
Vedanta Resources is the Parent company of Vedanta Limited, where it holds a 56.38 percent stake, and Vedanta Limited has 9 other subsidiaries, with Hindustan Zinc being its listed subsidiary with a 63.40 percent stake. All other subsidiaries of Vedanta Limited are unlisted.
All the unlisted subsidiaries include; Bharat Aluminium (BALCO) with 51 percent stake, Zinc International with 100 percent stake, Talwandi Sabo Power 100 percent stake, ESL Steel limited 95.50 percent stake, Ferro Alloy Corporation 100 percent stake, Meenakhi Energy Limited 100 percent stake, Vedanta Display limited 100 percent stake and Vedanta Semiconductor private limited 100 percent stake.
Vedanta Ltd had received overwhelming approval from shareholders, 99.99 percent and 99.59 percent from secured creditors & 99.95 percent from unsecured creditors for its demerger plans to split into five independent, sector-focused entities.
The move aimed to unlock value and improve focus across its core businesses aluminium, oil & gas, power, iron & steel, and base metals (including zinc and silver). Each Vedanta shareholder will receive one share in each of the four newly created companies.
Written By Abhishek Das
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