Vedanta Ltd. reported a mixed operational performance for the fourth quarter of fiscal year 2025-26, with increases in some segments and significant output drops in others.
The company announced a 2% rise in aluminium production and a 2% increase in Zinc India's mined metal output. However, oil and gas production fell by 15%, averaging 81,500 barrels of oil equivalent daily. Saleable iron ore output was down 3%, and saleable steel output decreased by 1%.
This performance occurred as commodity markets show diverging trends. Base metals like aluminium are expected to benefit from green investment, while crude oil faces downward pressure from oversupply. Iron ore prices are also projected to decline due to softening Chinese demand and increasing supply.
Despite production disparities, analyst sentiment remains positive, with a majority rating Vedanta a 'Buy' or 'Moderate Buy'. The average 12-month price target suggests potential upside of 8.6% to 17.6%. The company's market capitalization is approximately ₹2.65 to ₹2.73 trillion, with a trailing P/E ratio generally between 13x and 24.5x. Its P/E of 18.12 is comparable to Hindustan Zinc (18.46) and lower than Hindalco Industries (23.35), but higher than NMDC (10.2x).
Vedanta's stock has gained significantly over the past year, rising by approximately 50.26% to 71.29%, currently trading around ₹687-₹688 within its 52-week range of ₹363 to ₹770. In regulatory news, the deadline for the company's proposed demerger has been extended to June 30, 2026, due to pending government approvals, marking the third revision.
Looking ahead, Vedanta anticipates achieving its fiscal year 2026 guidance with expected volume growth and margin expansion. The company has issued production guidance for aluminium and oil & gas and plans power business capacity additions, though success hinges on navigating market trends and completing its demerger.