Vedanta Misses Quarterly Profit Estimates Despite Revenue Growth in Aluminium and Copper
Vedanta Misses Profit Forecasts as Lower Aluminium and Copper Prices, Higher Taxes Weigh on Earnings
Indian conglomerate Vedanta Ltd. fell short of quarterly profit expectations for the three months ending June 30, as declining aluminium and copper prices along with higher tax expenses outweighed gains from strong domestic demand.
Despite reporting a 6.2% year-on-year increase in total revenue to ₹374.34 billion ($4.3 billion), Vedanta’s consolidated net profit dropped to ₹31.85 billion, down from ₹36.06 billion during the same quarter last year. Analysts polled by LSEG had expected a profit of ₹34.83 billion.
Vedanta, India’s largest aluminium producer, derives nearly 40% of its revenue from its aluminium division, with zinc and copper following as major contributors.
However, commodity prices declined sharply during the reporting quarter. Benchmark prices for three-month aluminium (CMAL3) and copper (CMCY3) fell by 4% and 4.1%, respectively, impacted by global geopolitical tensions and ongoing uncertainty surrounding U.S. trade policy.
These price drops put pressure on Vedanta’s realized selling prices and profit margins, a trend that has affected mining companies globally.
Despite the pricing headwinds, Vedanta recorded revenue growth of 7.7% in aluminium and a strong 34.6% in copper, highlighting resilient domestic demand and operational volume growth.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose about 2% year-on-year to ₹60.53 billion, although tax expenses nearly doubled to ₹15.96 billion from ₹8.31 billion last year—significantly impacting bottom-line profitability.
Vedanta’s operating profit margin remained steady at 21%, indicating operational efficiency despite external price pressures.
Earlier in July, Vedanta’s subsidiary Hindustan Zinc Ltd. reported better-than-expected earnings for the first quarter, benefiting from solid demand, which helped absorb the impact of lower zinc prices.
Vedanta’s latest results reflect the dual impact of global market volatility and rising domestic operational costs, particularly in the form of increased taxation.
While demand trends remain supportive, especially in India’s infrastructure and industrial sectors, commodity price recovery and cost control will be crucial for the company to meet future earnings expectations.
