Vedanta (VEDL) Q2 24/25 earnings summary

Executive summary

• Achieved record H1 EBITDA of ₹20,640 crore, up 46% year-over-year, and Q2 EBITDA of ₹10,364 crore, up 44% year-over-year, driven by cost optimization and favorable prices.

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

• PAT before exceptional items rose 230% year-over-year to ₹4,467 crore; reported PAT including exceptional items was ₹5,603 crore.

• Strategic initiatives included major cost reductions, commissioning of new projects, and progress on demerger and ESG commitments.

• Ranked among top 3 in S&P Global Corporate Sustainability Assessment for the second consecutive year.

Financial highlights

• EBITDA margin improved to 34%, up 900 basis points year-over-year.

• Net debt-to-EBITDA ratio improved to 1.49x, best in six quarters.

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

• Liquidity position at ₹21,727 crore, up 30% year-over-year.

• Paid-up equity share capital increased to ₹391 crore following a QIP issue.

Outlook and guidance

• Confident in 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, supported by Lanjigarh ramp-up and power cost reductions.

• 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 projects in aluminium, zinc, and power on track for commissioning and ramp-up in FY25 and FY26.

• Demerger process in final stages, targeted for completion by March 2025, pending regulatory approvals.