Vedanta and Vedanta Aluminium Metal Deliver Strong Q1 Gains on Higher Metal Prices
Vedanta and Vedanta Aluminium Metal have posted strong Q1 gains after demerger, thanks to elevated metal prices. The two companies together accounted for over 95% of the Vedanta Group's net profit in the June quarter.
Vedanta Aluminium reported a massive 216% year-on-year jump in net profit, outperforming Hindalco and Nalco. Elevated aluminium prices boosted earnings during the quarter, with average LME aluminium price increasing 46% YoY to $3,565 per tonne.
Analysts expect aluminium prices to remain elevated in the near term due to supply disruptions, China's production cap, and delays in commissioning new smelters. Vedanta Aluminium plans to spend around ₹5,000 crore on capex in FY27, including ₹2,000-2,500 crore at its subsidiary Bharat Aluminium Company.
Vedanta reported a 152% year-on-year increase in net profit in the June quarter, broadly in line with Hindustan Zinc and Hindustan Copper. The outlook for Vedanta's base metals remains supportive, with aluminium and copper prices expected to stay elevated while zinc prices are likely to remain firm.