Vedanta (VEDL) Q2 24/25 earnings summary

Executive summary

• Achieved record first-half EBITDA of ₹20,639 crore, up 46% year-over-year, and Q2 EBITDA of ₹10,364 crore, up 44% year-over-year, driven by cost optimization and operational excellence.

• Q2 FY25 revenue was ₹37,171 crore, up 10% year-over-year; net profit after tax reached ₹5,603 crore, a significant turnaround from a loss in Q2 FY24.

• Profit after tax before exceptional items increased 230% year-over-year to ₹4,467 crore; reported PAT including exceptional items reached ₹5,603 crore.

• Strategic initiatives included major cost reductions, commissioning of new projects, and progress on demerger, with regulatory approvals in process.

• Ranked among top three in S&P Global Corporate Sustainability Assessment for the second consecutive year.

Financial highlights

• EBITDA margin rose to 34%, a 900 basis point increase year-over-year, setting an industry benchmark.

• Free cash flow (pre-capex) at ₹8,525 crore, up 50% year-over-year.

• Net debt-to-EBITDA improved to 1.49x, the best in six quarters; net debt reduced by ₹4,400 crore sequentially.

• Liquidity position at ₹21,539 crore, up 30% year-over-year and quarter-on-quarter.

• Return on capital employed (ROCE) at 23%, up 152 basis points year-over-year.

Outlook and guidance

• Confident of achieving highest-ever annual EBITDA in FY25, with H2 typically contributing 60% of annual EBITDA.

• Aluminium cost guidance maintained at $1,625–$1,725 per ton, with cost reductions expected from Lanjigarh ramp-up and lower power costs.

• FY25 production guidance: Aluminium/Alumina 2.3–2.4 Mnt, Zinc India mined metal 1,075–1,100 kt, Oil & Gas 110–120 kboepd.

• Major capital projects in aluminium, zinc, and power to reach completion in coming quarters, supporting growth into FY26.

• No adjustments made in current financials pending regulatory and other substantive approvals for the demerger.