Posted on April 4, 2025, by Niftynews
Vedanta share price saw a sharp decline of over 8% on April 4, 2025, despite the company reporting record production figures in aluminium and zinc for the fiscal year ending March 31, 2025. The stock drop has been attributed to broader market weaknesses, with investors evaluating factors beyond Vedanta’s operational performance.
Strong Production Growth Across Key Segments: Aluminium and Zinc Lead the Way
Vedanta’s Q4FY25 production update highlighted strong operational growth in key sectors. The company reported record aluminium and zinc production for both the fourth quarter and the full fiscal year. Vedanta achieved an impressive 2,421 kt of aluminium production, marking a 2% year-on-year increase. Furthermore, alumina production saw a 9% annual growth, supported by ongoing expansion projects, although temporary supply chain disruptions affected quarterly output.
Zinc India also recorded its highest-ever output, with mined metal production reaching 1,095 kt and refined metal production at 1,052 kt, reflecting a 2% increase over the previous year. Fourth-quarter production saw a notable 17% sequential rise in mined metal output, bolstered by improved ore grades from the Agucha and Zawar mines.
Vedanta Zinc Hits Record Output, Driving Strong Growth in Q4FY25
Vedanta Zinc International division delivered remarkable results, with a 52% year-on-year jump in mined metal production. The Gamsberg mine played a crucial role in this performance, with fourth-quarter production soaring 89% year-on-year and 15% sequentially. This increase was driven by improved recoveries, which supported the strong performance for the period. Additionally, copper production in India surged 41% year-on-year, contributing to an overall 6% annual rise.
Other Key Highlights from Vedanta’s Q4FY25 Update
Vedanta’s performance across its other divisions also showed positive trends:
- Power Sales: Vedanta’s power business saw an 18% sequential jump in Q4FY25 sales. Talwandi Sabo Power Limited (TSPL) recorded total annual power sales of 10,230 million units.
- Oil & Gas: Vedanta’s oil and gas production rose to 3.5 kboepd, driven by the ramp-up at the Jaya discovery.
- Iron Ore: Vedanta reported a significant 36% sequential increase in iron ore output in Q4FY25, supported by increased inventory utilization at Iron Ore Karnataka (IOK) and accelerated mine ramp-ups at Iron Ore Goa (IOG).
- Steel and Pig Iron Production: Vedanta’s steel production grew 4% year-on-year, while pig iron production registered a 4% year-on-year increase.
Stock Price Trend: What’s Behind the 8% Drop in Vedanta Shares?
Despite reporting strong production figures, Vedanta shares fell as much as 8.2% to ₹403.50 on April 4, 2025. This decline puts the stock more than 23% below its 52-week high of ₹527.00, which it reached in December 2024. On the bright side, Vedanta shares have gained 34% from their 52-week low of ₹301.70, recorded in April 2024. The stock has also climbed over 47% in the past year and added 17% in March 2025, reversing five consecutive months of losses.
Technical View: Vedanta Share Price Forecast and Market Outlook
On the technical front, Vedanta stock has faced some volatility after its Q4FY25 production update. According to Mahesh M Ojha, AVP – Research at Hensex Securities, Vedanta share price could potentially touch ₹450 per share once it breaks the ₹424 hurdle on a closing basis. The stock has strong support between ₹400 to ₹390 per share. Investors holding Vedanta shares are advised to maintain a stop-loss at ₹388.
New investors looking to buy the stock could consider entering around ₹400 or above ₹424, with a short-term target of ₹450. However, they should also ensure they maintain a stop-loss at ₹388 while taking a fresh position in the stock.
Conclusion
Despite Vedanta strong operational performance, particularly in aluminium and zinc production, the company’s stock price has seen a sharp decline of over 8%. This downturn is reflective of broader market conditions rather than issues with Vedanta’s fundamentals. As the company continues to report record production and growth across various segments, its long-term outlook remains positive. However, the volatility in the stock price serves as a reminder of the broader market forces at play.
Investors in Vedanta shares should closely monitor market trends and consider the technical indicators while making decisions for the short and long term.
