Vedanta's Record-Breaking Production in Q4 and FY25: A New Milestone

Vedanta Limited, one of the largest mining conglomerates in India, has reported a remarkable achievement in its aluminium and zinc production figures for the fourth quarter and the fiscal year 2025, ending March 31. The company has successfully reached historic highs in these critical commodities, solidifying its position in the global metals market. This achievement is a testament to Vedanta's operational efficiency and strategic planning, despite the challenges posed by volatile commodity markets.

Aluminium Production Hits New Heights

Vedanta's aluminium production has surpassed previous records, reaching an annual output of 2,421 thousand tonnes (kt) for the fiscal year 2025. This marks a 2% increase compared to the previous year, while the fourth-quarter production was 603 kt, which is 1% higher year-on-year[1][2]. This steady growth in aluminium production underscores Vedanta's commitment to expanding its production capacity and meeting the increasing demand for aluminium globally.

The rise in aluminium output has been significantly influenced by operational efficiencies and expansion projects. However, quarterly alumina production faced temporary supply chain disruptions that have since been normalized by the end of the quarter[2]. This resilience in overcoming operational challenges is crucial for maintaining Vedanta's market competitiveness.

Zinc Production Achieves New Records

Zinc India, one of Vedanta's key business verticals, has achieved its highest-ever mined metal production of 1,095 kt and refined metal production of 1,052 kt in the fiscal year 2025. Both figures represent a 2% increase from the previous fiscal year[1][2]. The fourth quarter saw a remarkable 17% sequential increase in mined metal production, driven by higher grades at the Agucha and Zawar mines[2]. Refined metal output also increased by 4% during the same period, reflecting improved plant performance and operational efficiencies.

In addition to these impressive figures, Zinc International reported a significant 52% year-on-year increase and a 9% sequential increase in mined metal production for Q4. This growth was primarily driven by the robust performance at the Gamsberg mine, which saw a 89% surge in production year-on-year and a 15% sequential increase due to improved recoveries[2].

Other Operational Highlights

Beyond aluminium and zinc, Vedanta reported several other notable operational milestones:

• Iron Ore Sales: Iron ore production experienced a significant 36% sequential increase in the fourth quarter, supported by improved inventory utilization at the IOK and mine ramp-ups at the IOG[2].
• Steel Production: Saleable steel output rose by 4% year-on-year and 8% sequentially, driven by enhanced operational efficiencies and higher hot metal production[2].
• Copper Production: Copper production jumped 41% year-on-year in Q4, contributing to a 6% annual rise. This increase highlights Vedanta's strategic expansion in the copper segment[1][2].
• Power Sales: Vedanta's power business also reported strong growth, with power sales in Q4 rising 18% sequentially. TSPL's annual power sales reached 10,230 million units, indicating a robust operational performance[2].
• Oil & Gas Operations: Although oil & gas production declined by 19% year-on-year in Q4, primarily due to lower volumes from Rajasthan and Ravva fields, new discoveries and ramp-ups are expected to bolster production in the future[1].

Impact on the Market and Future Outlook

The record aluminium and zinc production figures reported by Vedanta have significant implications for the global metals market. As demand for these metals continues to grow due to their critical roles in infrastructure development and renewable energy sectors, Vedanta is well-positioned to meet this demand and expand its market share.

Despite a temporary decline in its stock price, Vedanta's operational achievements have reinforced its standing as a major player in the metals industry. The company's ongoing focus on operational efficiency, strategic expansion, and sustainable practices will be key factors in navigating future commodity cycles.

Looking Ahead: Demerger and Growth Strategies

Vedanta has extended the deadline for its demerger to September 30, awaiting pending approvals[2]. This strategic move aims to unlock shareholder value by separating its businesses into distinct entities. With ongoing expansion projects and operational efficiencies expected to drive growth across its business verticals, Vedanta is poised for a strong future in the metals sector.

In conclusion, Vedanta's record-breaking production in aluminium and zinc represents a significant milestone for the company, reflecting its commitment to operational excellence and strategic growth. As global demand for these critical metals continues to rise, Vedanta's achievements in FY25 position it well for future market leadership.

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