Vedanta share price declines over 7%: Here are the key factors to check

Vedanta’s annual aluminium production grew 2% year-on-year (YoY), while fourth quarter production marginally edged higher by 1% on the year.

Its annual alumina production jumped 9% YoY, mainly on account of production from the new train of expansion. The company further said that its alumina production was lower during the quarter due to unplanned supply chain issues, which got normalised by the quarter's end.

Zinc India recorded a new high for annual mined metal production of 1,095 kt and refined metal production of 1,052 kt (+2% YoY). Vedanta said this was the highest ever annual refined metal production amid better plant availability and operational parameters.

For Zinc International, the total mined metal production jumped 52% YoY and 9% sequentially in the March quarter due to higher tonnes treated at Gamsberg and higher BMM lead and zinc grades.

Supported by the ramp-up of volumes from the Jaya discovery, oil and gas production of Vedanta from OALP blocks stood at 3.5 kboepd in the fourth quarter of FY25. Its annual overall average gross operated production across assets is 103.2 kboepd. Meanwhile, iron ore production for Q4 FY25 was up 36% QoQ on account of the utilisation of inventory at IOK and the ramp-up of mine production at IOG.

For Q4, Vedanta’s total steel production went up by 4% YoY and 8% QoQ on account of an increase in hot metal production due to an improvement in the operational efficiency of the plant. Copper India’s fourth quarter production grew 41% YoY, and annual production also rose 6% YoY.

However, the business updates failed to cheer the market investors. At 12:27 PM, shares of Vedanta were trading at ₹406.65 apiece, tanking 7.47% on the National Stock Exchange.

Shares of the company also tumbled amid concerns over Trump’s latest tariffs that are expected to impact the industrial commodities. Aluminium, steel and other metals were exempted from reciprocal tariffs, but the US government had imposed 25% tariffs on their imports earlier. This could further hurt Vedanta’s business.

In the last five trading sessions, shares of Vedanta have lost over 12%. For 6 months period, since October 4, 2024, the scrip has slipped over 20%. However, for a year's period, the stock has gained 31%.

According to NSE data, the company's market capitalisation stands at ₹1.51 lakh crore.

Vedanta last month had received an approval from its shareholders and creditors for its proposal to demerge the company into five independent, sector-specific companies, according to a stock exchange filing by the company.

The demerger was approved by 99.99% of shareholders, 99.59% of the secured creditors, and 99.95% of unsecured creditors of Vedanta Limited who voted in favour of the demerger, as per the stock exchange filing made by the company.

Vedanta chairman Anil Agarwal, in a letter to the shareholders, had said that each of the four newly demerged firms has the potential to grow into a $100 billion company.

“Vedanta's unique and irreplaceable assets, sector-leading position, strong global management, and financial discipline will ensure a stronger growth trajectory and higher returns going forward,” Agarwal added.