Vedanta Resources posts record $18.2 billion revenue in FY25, charts bold transformation into ‘Vedanta 2.0’

THEBUSINESSBYTES BUREAU

LONDON, JUNE 24, 2025

In a landmark financial performance, Vedanta Resources Ltd. has reported a record-breaking revenue of US$ 18.2 billion for the fiscal year 2025, marking a 6% year-on-year growth. The London-headquartered natural resources conglomerate also posted its second-highest consolidated EBITDA of US$ 5.5 billion, reflecting a robust 16% increase, driven by strong commodity prices, higher premiums, and operational efficiencies across its diversified portfolio.

Announcing the results, the company highlighted a solid EBITDA margin of 36% and cash and cash equivalents of US$ 2.6 billion. With a free cash flow post-capex of US$ 1.0 billion and a return on capital employed at approximately 25%, Vedanta demonstrated disciplined capital deployment and sound financial stewardship.

Chairman Anil Agarwal underlined the company’s strategic shift towards transformation, declaring, “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.” Calling this a “right moment” for change, he unveiled Vedanta’s vision for “Vedanta 2.0”—an evolution into a future-ready enterprise spanning natural resources, energy, and technology. “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,” he added.

The company significantly strengthened its balance sheet during the fiscal, reducing net debt by US$ 1.2 billion to US$ 11.1 billion, improving the net debt-to-EBITDA ratio from 2.6x to 2.0x. These efforts were recognised by major credit rating agencies, with S&P Global upgrading Vedanta’s rating by three notches to ‘B+’, while Fitch and Moody’s also revised their outlook to B+ and B1, respectively.

Vedanta’s operational highlights for FY25 include record performances in its core verticals. Zinc India posted its highest-ever mined metal production at 1,095 kilotonnes and refined metal at 1,052 kilotonnes. Vedanta Aluminium also reported record output of 2,422 kilotonnes of metal and 1,975 kilotonnes of alumina. Both businesses maintained global cost leadership, ranking in the top decile and quartile of the global cost curve.

Staying true to its environmental commitments, Vedanta accelerated its sustainability agenda with a firm goal of achieving net-zero emissions by 2050. “We have secured 1,906 MW of renewable energy and have already begun integration across Hindustan Zinc and Vedanta Aluminium,” Agarwal said. He also noted enhanced water management outcomes, with 35% water recycling achieved and an improved water positivity ratio of 0.63x.

The company’s future growth strategy hinges on unlocking value through organic expansion and brownfield development. A major structural overhaul is also underway, with the demerger of Vedanta Limited into five independent, sector-focused entities. The demerger, overwhelmingly approved by shareholders and creditors with 99.5% support, will entitle existing shareholders to receive one equity share in each of the new companies. This move is poised to enhance strategic focus, investor visibility, and long-term value creation across the group’s verticals.