VEDL Q2 FY25 earnings call.
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Revenue
₹37,634 Cr
verified against source
Revenue YoY
10%
reported change
EBITDA
₹10,364 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Vedanta delivered an exceptional Q2 FY25 with EBITDA reaching INR 10,364 crore, up 44% YoY, driven by structural cost optimization and favorable commodity prices. EBITDA margin expanded to 34% from 25%, a 900bps improvement, while PAT before exceptional items surged 230% to INR 4,467 crore. The company achieved its highest-ever H1 EBITDA of INR 20,639 crore, up 46% YoY. Aluminum production hit a record 609 KT with cost optimization underway via Lanjigarh expansion; Zinc India delivered its lowest cost in four years at $1,071/ton. Key projects—Lanjigarh Train 2 commissioning, BALCO expansion, Debari roaster—are on track for H2 execution. Management targets the lowest annual cost of production in four years for Zinc India and maintains aluminum cost guidance at $1,625-1,725/ton despite alumina price pressures. Risk factors include alumina price volatility, coal block commissioning delays (Q1 FY26), and Guinea bauxite supply concerns, though long-term contracts and Lanjigarh ramp-up should provide mitigation.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets highest-ever annual EBITDA in FY25 by delivering remaining 60% in H2, building on record H1 EBITDA of ₹20,639 crore.
- Maintain full-year aluminum cost guidance at $1,625-1,725/ton. Lanjigarh expansion ramp-up and power cost savings of $40-50/ton expected to offset higher alumina costs in Q3-Q4.
- On clear trajectory to achieve the lowest full-year cost of production in the last four years of operation, with Q2 FY25 at $1,071/ton.
- Full commissioning of Meenakshi Power Plant (1,000 MW) this fiscal; Athena Power Plant (1,200 MW) approved with ₹5,209 crore CapEx; targeting 5 GW commercial power within 18-20 months.
Risks flagged
- Bought-out alumina prices have increased significantly. While management expects Lanjigarh ramp-up and power cost savings to offset, Q3-Q4 aluminum cost guidance execution remains contingent on successful operational ramp-up.
- Kurloi and Radhikapur coal blocks expected operational by Q1 FY26 with ramp-up by Q3 FY26. Election-related process delays and further approvals (FC2 for Radhikapur) could push timelines beyond current guidance.
- Global bauxite market tightness from Guinea affecting supply. Vedanta has ~10-15% exposure through EGA long-term contracts and is monitoring situation; Sijimali mine start in Q1 FY26 will partially de-risk supply.
- While NCLT hearing completed and shareholders/creditors meetings planned, the March 2025 deadline for demerger completion remains subject to regulatory approvals. Management stated scheme is flexible to accommodate staggered listing.
Key quotes
- This quarter stands out as the most remarkable one with considerable advancements in our corporate actions, robust financials, and highly effective operations. I'm very pleased to announce that we have achieved our highest-ever H1 EBITDA of ₹20,640 crores, a 46% growth YOY.
- Our EBITDA margin increased by 9% from a robust 25% in the second quarter of last year to an industry-leading 34% in the second quarter of the current fiscal, driven by our structural cost reduction initiatives and operational efficiency.
- Going forward, the near-term opportunity lies in Lanjigarh expansion. The work that we have done on our assets will give us further reduction in terms of the power cost and the operational efficiency. We will see a bought-out alumina prices higher, which will be to an extent or mostly offset by power cost and the other cost.
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