#VedantaResources #VedantaResources18BillionUSDRevenue #VedantaResourcesReports5BillionEBITDA
Chandigarh: Vedanta Resources Limited, the London-headquartered global natural resources conglomerate, has reported its highest-ever annual revenue of $18.2 billion for the fiscal year ended March 31, 2025, marking a 6% year-on-year (YoY) increase. The growth comes on the back of robust commodity prices, stronger operational performance, and enhanced efficiency across its diverse business segments.
In a statement released on Tuesday, the company also reported a consolidated EBITDA of $5.5 billion—its second-highest to date—up 16% YoY. Vedanta achieved an EBITDA margin of 36%, reflecting improved profitability despite volatile macroeconomic conditions.
The company generated free cash flow (post-capex) of $1.0 billion, and its return on capital employed (ROCE) remained strong at approximately 25%, showcasing disciplined capital deployment and a focus on long-term value creation.
Strategic Transformation Underway: “Vedanta 2.0”
Commenting on the financial performance and strategic outlook, Anil Agarwal, Chairman of Vedanta Resources, said the company is at an inflection point in its evolution. “The world around us is moving fast. There are big changes in geopolitics and geoeconomics. Some may view them as a challenge. We view them as opportunities,” he stated.
He further emphasized Vedanta’s ongoing transformation from a traditional mining entity into a multi-faceted natural resources, energy, and technology conglomerate—a phase he dubbed “Vedanta 2.0”.
“We are also in the process of demerging our business verticals to create a pure-play model, which is nimble and fine-tuned to even faster growth and unlocking of massive value,” Agarwal added.
Deleveraging and Improved Financial Health
Vedanta Resources made significant headway in improving its financial position over FY25. The company reduced its net debt by $1.2 billion, bringing the total down to $11.1 billion. This led to an improvement in the net debt-to-EBITDA ratio, which declined to 2.0x from 2.6x in the previous year.
Reflecting its improved credit profile, leading global rating agencies upgraded Vedanta’s ratings. S&P Global raised the company’s rating by three notches to ‘B+’, while Fitch Ratings and Moody’s both moved Vedanta up to ‘B+’ and ‘B1’, respectively.
Strong Operational Performance Across Key Businesses
Vedanta’s operational performance across its key verticals in FY25 also set new benchmarks:
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Zinc India posted record mined metal production of 1,095 kilotonnes (kt) and refined metal production of 1,052 kt.
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Vedanta Aluminium achieved record metal production of 2,422 kt and alumina output of 1,975 kt, while maintaining its position in the top decile of the global cost curve.
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Both zinc and aluminium businesses remained cost leaders in their respective industries, reinforcing Vedanta’s competitive edge.
Sustainability at the Core: Commitment to Net-Zero by 2050
Agarwal reaffirmed Vedanta’s commitment to Environmental, Social and Governance (ESG) principles. The company has set an ambitious target to become net-zero by 2050 and has already made substantial strides in integrating renewable energy across its operations.
“We have secured 1,906 MW of renewable energy, and businesses like Hindustan Zinc and Vedanta Aluminium have already begun utilizing green energy. This is a key step toward achieving our sustainability targets,” said Agarwal.
The company also reported progress on its water stewardship goals, with 35% of water recycled and a water positivity ratio of 0.63x. “Responsible business practices, transparency, and robust governance will always be fundamental to our ethos,” he added.
Demerger of Vedanta Ltd. to Unlock Shareholder Value
One of the most significant strategic steps underway is the proposed demerger of Vedanta Ltd., the Indian subsidiary of Vedanta Resources. Once completed, this restructuring will create five independent, sector-focused, and globally scaled entities.
The demerger has received strong backing from stakeholders, with over 99.5% of shareholders and creditors voting in favour of the proposal. Post-demerger, shareholders of Vedanta Ltd. will receive one share each in the new demerged entities, allowing for direct participation in specific businesses like metals, energy, and semiconductors.
“The goal is to create pure-play companies that are agile and laser-focused on growth in their respective verticals,” said the company.
Looking Ahead
Vedanta’s strong FY25 performance comes amid a backdrop of global economic uncertainty and commodity market volatility. The group’s diversified portfolio, cost leadership, and focus on operational excellence have helped it weather challenges and emerge stronger.
As it embarks on its next phase of growth with “Vedanta 2.0,” the company is positioning itself at the intersection of natural resources, sustainable energy, and next-gen technology. Its focus on financial discipline, ESG leadership, and structural reorganization is likely to shape its trajectory in the years ahead.
With the demerger process nearing completion and a strong balance sheet in place, Vedanta appears well-equipped to capitalize on emerging global trends in commodities, clean energy, and industrial innovation.
