Vedanta Ltd is India’s poster child for two things: digging stuff out of the ground and digging itself deeper into debt. Market cap ₹1.68 lakh crore, dividend yield 10.1% (yes, double digits, because who needs capex discipline?), promoter holding 56.4% but 100% pledged—like a student giving his Aadhaar card, bike, and PlayStation as collateral for a ₹5,000 loan.
2. Introduction
Vedanta is not one company; it’s an entire buffet of commodities—aluminium, zinc, silver, copper, oil, power, steel, iron ore. If there’s a way to extract rent from Mother Earth, Vedanta has tried it.
The empire spans India, Africa, Ireland, and even glass substrates in Korea and Taiwan (because why not?). India contributes ~65% of revenues, but Malaysia, China, and UAE chip in with small slices.
Despite being a resource giant, Vedanta is best known for its high drama: massive dividends, perpetual debt refinancing, demerger announcements, regulatory fights, and pledging promoters who act like they’re in a season finale of Money Heist.
So yes, Vedanta is both a cash cow and a soap opera. Which one dominates depends on where metal and oil prices go.
3. Business Model – WTF Do They Even Do?
Think of Vedanta as a thali:
Aluminium (38% revenue): India’s largest producer with 46% market share. 2.4 MnT smelting capacity, 3.5 MTPA alumina refinery.
Zinc, Lead & Silver (24%): Through Hindustan Zinc (65% stake). World’s 3rd largest silver producer, massive zinc reserves. International ops in South Africa/Namibia.
Copper (15%): Cathodes and rods, 20% domestic market share.
Oil & Gas (8%): Cairn India, once a star, now just another asset sweating in Rajasthan’s desert.
Power (4%): 12 GW capacity. Because someone has to power all these smelters.
Expansion plans? Everywhere. New smelters, refineries, zinc plants, fertiliser complexes, power projects. Basically, Vedanta wants to print more tonnage than a UPSC aspirant prints PDFs.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹37,824 Cr
₹35,764 Cr
₹40,455 Cr
+5.8%
-6.5%
EBITDA
₹9,918 Cr
₹9,945 Cr
₹11,466 Cr
-0.3%
-13.5%
PAT
₹3,185 Cr
₹5,095 Cr
₹4,961 Cr
-37.5%
-35.8%
EPS (₹)
8.14
9.70
8.91
-16.1%
-8.7%
Commentary: Revenue growth is fine, but PAT is melting faster than an ice cube in Jharsuguda smelter.
5. Valuation – Fair Value Range Only
a) P/E Method
EPS (TTM): ₹37.2
P/E range: 8–14x
Fair range: ₹300–₹520
b) EV/EBITDA Method
EV: ₹2.52 lakh Cr
EBITDA (TTM): ₹42,316 Cr
EV/EBITDA: ~6x
Fair multiple: 5–7x
Range: ₹350–₹490
c) DCF (Commodities Edition) Assume flat to 5% growth, WACC ~12%. Fair value range ₹320–₹480.
Fair Value Range (educational): ₹300–₹520
Disclaimer: This is for education, not for funding your next margin call.
6. What’s Cooking – News, Triggers, Drama
Mega Dividends: Second interim dividend ₹16/share (₹6,256 Cr). Total payout over 200%—basically Vedanta runs like a family ATM.
Demerger Plan: 6-way split into Aluminium, Oil & Gas, Power, Steel & Ferrous, Base Metals, and Vedanta Ltd. Sounds like a corporate K-pop group. Execution still pending.
Debt Games: Repeated NCD issues, asset sales (HZL stake), and refinancing. Promoters pledged 100% of holding—like handing house keys to lenders.
Expansion: $84M pumped into Gamsberg Phase II zinc project. Aluminium and power expansions underway.
Legal Drama: Supreme Court upheld APTEL ruling against TSPL’s policy benefits. Another line in Vedanta’s long rap sheet of court cases.
Question: Do you like companies that give 10% dividends… or does the 100% pledge smell like pawnshop management?
