Vedanta Resources Posts Profit of $1.6 billion in FY25; Revenue Hits $18.2 billion

Vedanta Resources Ltd has reported a net profit of US $1,617 million for the fiscal year ending March 2025, marking a sharp recovery from a loss of US $400 million in FY24. This turnaround reflects a combination of stronger commodity prices, streamlined operations, and improved cash flow management.

The company’s annual revenue rose 6% to US $18.22 billion, up from US $17.13 billion a year earlier. It also posted a record EBITDA of US $5.5 billion, reflecting solid performance across its core businesses.

Key Performance Drivers

• Commodity Market Tailwinds: Improved pricing for metals like aluminium, zinc, and copper played a central role in boosting revenue and profit.

• Operational Efficiencies: Cost optimization and enhanced production efficiency across Vedanta’s business segments contributed to margin expansion.

• Healthy Cash Flow: Free cash flow after capex stood at approximately US $1.0 billion, with total cash and equivalents at US $2.6 billion.

Strategic Shift and Financial Restructuring

Chairman Anil Agarwal hailed FY25 as a “transformational year,” aligning with the company’s ambition to evolve into a natural resources, energy, and technology powerhouse under the “Vedanta 2.0” vision.

A major highlight of the year was the demerger plan, approved by 99.5% of shareholders and creditors. This will result in Vedanta Limited spinning off its major verticals into independent, sector-focused companies, a move aimed at unlocking greater shareholder value and improving operational agility.

Debt Management and Credit Ratings

Vedanta reduced its net debt by US $1.2 billion, bringing the net debt-to-EBITDA ratio down from 2.6× to 2.0×. This prudent financial discipline led to multiple credit rating upgrades from agencies like S&P, Fitch, and Moody’s, improving the company’s standing among global investors.

Future Outlook

Vedanta plans to pursue organic growth by optimizing existing operations and investing in brownfield expansion projects. The newly created entities under the demerger strategy are expected to operate more efficiently and focus on innovation and sustainable growth.

Market Context

The company’s strong FY25 results were built on a solid foundation laid in previous quarters. In Q4, profit after tax jumped 154% YoY to ₹34.83 billion (approximately US $412 million), driven by higher aluminium and zinc prices and a lower tax burden. EBITDA margins also saw meaningful improvement, reaching 35%.