Vedanta FY25 Shine May Fade on Weak Commodity Price

Analysts at JP Morgan cut Vedanta's FY26-27 Ebitda guidance by 7-8% earlier this month

- Nehal Chaliawala

Metals and mining major Vedanta Ltd notched record profits in the fourth fiscal quarter, aided by firm commodity prices, higher production volumes, and a reduction in expenses. This helped the company more than double its profit year-on-year to ₹4,961 crore—its best-ever fourth-quarter performance. Revenue was 14% more year-on-year at ₹39,789 crore.

But can it sustain this momentum in the face of macro headwinds? For instance, prices of aluminium, Vedanta's biggest profit centre, have softened in recent weeks following the US-led escalation of trade tensions. Similarly, other commodities like zinc also face price corrections after a stellar run last fiscal.

Analysts at JP Morgan cut Vedanta's FY26-27 Ebitda guidance by 7-8% earlier this month after pencilling in lower LME prices for aluminium, zinc and lead. LME is the London Metal Exchange, a leading international commodity exchange.

"We do see some impact due to prices coming down. But we don't anticipate we will be losing on our profitability just because LME prices are fluctuating," said Arun Misra, executive director of Vedanta.