Vedanta Aluminium Metal (VAML) Investor update summary

Demerger and financial priorities

• Shares in four new entities were distributed to record-date shareholders; listings were expected to conclude in June, with each entity operating independently under its own board and management.

• FY26 operating cash flow was ~$3B; ~$1.7B funded growth CapEx and the remainder dividends. Net debt ended at ~$5.7B, below 1x consolidated net debt/EBITDA.

• Opening net debt/EBITDA is below 1.3x for four entities; oil and gas is net cash positive, while power opens at ~4x and is expected to reach ~2x in two years.

• Consolidated EBITDA target exceeds $9B in FY27; Vedanta Resources targets debt of ~$3B in two years, from $5B currently.

Aluminium scale and integration

• Smelter capacity is planned to rise from 2.4 MTPA in FY26 to 2.88 MTPA in FY27 and 3 MTPA by FY28 exit; a further 3 MTPA greenfield expansion is in planning, with a No. 1 global ranking target ex-China.

• Refinery capacity grew from 2 MTPA in FY23 to 5 MTPA in FY26; value-added products are targeted to exceed 90% of capacity by FY27/FY28, from 71% in FY25/FY26.

• Backward integration targets 9 MTPA bauxite and 40+ MTPA coal capacity; Kuraloi and Sijimali ramp-ups are planned in 1HFY27 and Ghogharpalli in 2HFY27. Reserves support over 25 years at expanded capacity.

• FY26 production reached 2.456 million tonnes, up 7% in three years; capacity is targeted to reach 3 MTPA by FY28.

Aluminium financial and cost outlook

• FY26 hot-metal cost was $1,752/t, down 25%; the target is $1,550–$1,600/t and a top-decile global cost-curve position, from a current first-quartile position.

• FY29 EBITDA target is $4.5–5.8B versus $2.9B in FY26; a separate projection at current pricing reaches $5.8B. Volume is targeted to rise from 2.456 MMT to 3 MMT.

• Approved CapEx totals INR 27,712 crore; INR 19,460 crore was spent and INR 8,252 crore remained at FY26 end. Nearly 70% of approved expansion CapEx was spent by FY26, with pending spend largely funded through internal accruals.

• Net debt/EBITDA is expected below ~1.5x as earnings growth improves the balance sheet year over year.