Vedanta share price tanks over 8% after Q4FY25 production update. Do you own?

Shares of Vedanta Limited slumped over 8 percent on Friday, April 4, despite the company reporting record production figures for aluminium and zinc in both the fourth quarter and fiscal year ending March 31, 2025. The decline in Vedanta’s stock price came amid a broader weakness in the market, as investors assessed factors beyond the company’s operational performance.

Strong Production Growth Across Key Segments

Vedanta announced on April 3 that it had achieved historic highs in aluminium and zinc production, while also witnessing robust growth in iron ore, steel, oil and gas, and power sales. Annual aluminium production reached 2,421 kt, reflecting a 2 percent year-on-year increase, with fourth-quarter output rising 1 percent. Alumina production also saw a 9 percent annual growth, supported by expansion projects, though temporary supply chain disruptions affected quarterly production before stabilizing towards the end of the period.

Zinc Hits Record Output

Zinc India reported its highest-ever mined metal production of 1,095 kt, while refined metal production stood at 1,052 kt—both registering a 2 percent increase over the previous year. Fourth-quarter mined metal production surged 17 percent sequentially, supported by higher ore grades at the Agucha and Zawar mines. Additionally, refined metal output climbed 4 percent, while saleable silver production saw a 10 percent rise during the quarter.

Vedanta’s Zinc International division recorded a 52 percent year-on-year jump in total mined metal production, with a 9 percent sequential increase. The Gamsberg mine played a significant role, with fourth-quarter production soaring 89 percent year-on-year and 15 percent sequentially due to improved recoveries. Copper India also delivered strong growth, with fourth-quarter production increasing by 41 percent year-on-year, contributing to an overall 6 percent annual rise.

Other highlights

Vedanta’s power business saw an 18 percent sequential jump in fourth-quarter sales. Talwandi Sabo Power Limited (TSPL) recorded total annual power sales of 10,230 million units, operating at an 81 percent plant availability factor.

Oil and gas production from Open Acreage Licensing Policy (OALP) blocks rose to 3.5 kboepd during the quarter, driven by the ramp-up at the Jaya discovery. Across all assets, Vedanta's annual gross operated production averaged 103.2 kboepd.

Iron ore output surged 36 percent sequentially in the fourth quarter, supported by increased inventory utilization at Iron Ore Karnataka (IOK) and accelerated mine ramp-ups at Iron Ore Goa (IOG).

Pig iron production reached a record high, registering a 4 percent year-on-year increase. Steel production also saw steady growth, climbing 4 percent annually and 8 percent sequentially, aided by higher hot metal output and operational efficiencies. Ferro chrome production under FACOR advanced 4 percent year-on-year.

Meanwhile, Copper India delivered a strong performance, with fourth-quarter output rising 41 percent year-on-year, contributing to a 6 percent increase in annual production.

Stock Price Trend

The stock fell as much as 8.2 percent to its day's low of ₹403.50. It is now over 23 percent away from its 52-week high of ₹527.00, hit in December 2024. Meanwhile, it has advanced 34 percent from its 52-week low of ₹301.70, recorded in April 2024.

The mining stock has climbed over 47 percent in the last 1 year. Moreover, it added over 17 percent in March, snapping 5 straight months of losses.

Technical View

“Vedanta share price is falling today after a weak production update for Q4FY25. However, on the technical chart, Vedanta's share price may touch ₹450 apiece once it breaks the ₹424 hurdle on a closing basis. On the lower side, Vedanta shares have strong support from ₹400 to ₹390 per share. So, Vedanta shareholders can hold the scrip, maintaining a stop loss at ₹388. Fresh investors can initiate buying around ₹400 or above ₹424 for the short-term target of ₹450. However, they should also maintain a stop loss at ₹388 while taking a fresh position in the metal scrip,” said Mahesh M Ojha, AVP — Research at Hensex Securities.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.