Why Did Vedanta Shares Fall Over 7% Today?

On April 4, 2025, Vedanta share price tanked 7%, reaching a day low of 403.50 at 11:55 AM, after opening at 435.65 on BSE. The drop in Vedanta shares came after the company released its production update for Q4FY25 and FY25. The company posted record production figures across key business verticals for the Q4 and financial year ending March 31, 2025. Vedanta reached historic highs in aluminium and zinc production, along with strong growth in iron ore, steel, oil and gas, and power sales.

Aluminium Production

Vedanta achieved a record annual aluminium production of 2,421 kt, marking a 2% increase year-on-year. The Q4 output saw a 1% rise. Alumina production increased by 9% annually, driven by expansion projects. However, quarterly output was impacted by temporary supply chain disruptions, which normalized by the end of the quarter.

Zinc Production

• Zinc India: The company achieved its highest-ever mined metal production at 1,095 kt and refined metal production at 1,052 kt, both showing a 2% increase year-on-year. Mined metal production grew by 17% sequentially in the fourth quarter, driven by higher grades at the Agucha and Zawar mines, while refined metal output rose by 4%. Saleable silver production increased by 10% in the quarter.
• Zinc International: Zinc International saw a 52% year-on-year jump in total mined metal production and a 9% sequential rise. This was attributed to higher throughput at the Gamsberg and improved grades at BMM. Gamsberg’s fourth-quarter production surged 89% year-on-year and 15% sequentially, driven by better recoveries.

Oil and Gas Production

Oil and gas production from OALP blocks reached 3.5 kboepd during the quarter, supported by ramp-up at the Jaya discovery. The annual average gross operated production across assets was 103.2 kboepd.

Iron Ore Production

Iron ore production surged by 36% sequentially in the Q4, supported by increased inventory utilization at IOK and mine ramp-ups at IOG.

Pig Iron and Steel Production

• Pig Iron: Vedanta recorded a 4% year-on-year increase in pig iron production, reaching a record high.
• Steel: Total saleable steel output grew by 4% year-on-year and 8% sequentially, boosted by operational efficiencies and higher hot metal production.
• Ferro Chrome: Ferro chrome production under FACOR grew by 4% year-on-year.

Copper Production

Copper India saw a 41% year-on-year increase in fourth-quarter production, contributing to a 6% rise in annual copper production.

Power Sales

• Overall Power Sales: Power sales saw an 18% sequential increase in the fourth quarter. TSPL’s annual power sales reached 10,230 million units with an 81% plant availability factor.
• Balco: Balco recorded a 15% sequential and 18% year-on-year growth in power sales for the fourth quarter.
• HZL: Hindustan Zinc’s wind power generation improved by 33% sequentially.
• Jharsuguda: Power sales at Jharsuguda rose by 28% during the quarter.

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