With the highest-ever second-quarter output of zinc and record quarterly and half-yearly production of aluminum, the natural resources miner recorded a little YoY increase.
As the street processes the news of a delay in the demerger of important verticals, a solid second-quarter business report, and the continued increase in global base metal prices, investors in mining giant Vedanta will be watching the stock market attentively on October 6.
The Q2 Production Update for Vedanta
With the highest-ever second-quarter output of zinc and record quarterly and half-yearly production of aluminum, the natural resources miner recorded a little YoY increase. According to the business filing, Vedanta also reported the greatest quarterly and half-yearly alumina output it has ever had from its refinery in Lanjigarh.
In the second quarter of FY26, Vedanta’s average daily gross production of gas and oil fell by 15% to 89,300 barrels of oil equivalent per day (boepd). The quarter saw a 19% decline in iron ore output to 1.1 million tonnes, most likely as a result of increased rainfall or a poor demand for steel in construction.
The miner saw a steep decline in lead and silver output throughout the quarter, which dragged the metal basket, despite increased production in aluminum, alumina, zinc, and pig iron.
Delay in Demerger
Vedanta said that it has extended the demerger date to the end of March of next year due to the National Company Law Tribunal’s (NCLT) and authorities’ delayed permission. With the demerger, Vedanta’s several sectors should be able to become six distinct companies.
“The company’s board and the resultant businesses have chosen to go beyond September 30, 2025, to March 31, 2026, as the deadline for fulfilling the conditions precedent,” Vedanta stated, citing the ongoing completion of the NCLT, Mumbai Bench approval and approvals from various government authorities as well as the conditions precedent in the Scheme.
In response to the Petroleum Ministry’s concerns over disclosures, the NCLT has scheduled the hearing on Vedanta’s demerger request for October 8. Vedanta attorneys had informed the NCLT that “the government (minister of petroleum and natural gas) is not opposing the demerger plan, they are anxious about claims on RJ Block and cover decrease on demerger,” said the news.
We will keep a careful eye on the hearing in case there are any new indications that might cause the schedule to expand. In a recent report, Nuvama said that “if that occurs (the hearing’s conclusion), all uncertainty linked to demerger would go away and it may be finished in Q4FY26, unlocking value.”
In keeping with its strategic restructuring strategy, Vedanta said that it “continues to strive towards unlocking long-term value for all stakeholders.”
Rally of Base Metal
Prices for copper, aluminum, and other base metals have increased to multi-year highs due to both strong demand and limited supply.
In an attempt to reduce excess after years of capacity expansion, China recently cut its production growth goal for non-ferrous metals, such as copper and aluminum, for the years 2025 and 2026. According to Bill Oplinger, CEO of Alcoa Corp., US President Trump’s tariffs on the import of aluminum have been driving up the price of the commodity in the US, which might eliminate demand. On September 24, Bloomberg News reported CEO Oplinger as saying, “It is difficult to see a scenario where aluminum is routinely 50% higher in the US without some kind of demand damage.”
Due to the current shortage of supply, Vedanta has also profited from the spike in the price of copper and silver. According to a new note by Nuvama, Vedanta is “irresistible” at the present market pricing. The target price of Rs 601 is about 28% higher than the previous closing price.
Plans for Expansion
Vedanta intends to increase investment in local production of copper, silver, aluminum, and zinc—all of which are essential for renewable energy, aerospace, automotive, and defense. Vedanta supplies around 10% of India’s silver needs and has a 77% market share in the country’s principal market for zinc. Vedanta has purchased the rights to investigate mineral blocks in copper, graphite, nickel, cobalt, and gold, among other elements, in previous auctions.