Revenue and Profitability Trends
Vedanta’s net sales have shown a robust upward trend, rising from ₹92,048 crore in March 2019 to ₹1,52,968 crore by March 2025. This growth reflects the company’s expanding operations and market presence in the non-ferrous metals sector. Operating profit margins, excluding other income, peaked at 34.17% in March 2022 but moderated to 28.09% in the latest fiscal year, indicating some pressure on operational efficiency amid rising costs.
Operating profit (PBDIT) excluding other income increased from ₹23,103 crore in 2019 to ₹42,343 crore in 2025, underscoring improved core earnings. However, the profit after tax (PAT) margin has been more volatile, with a notable dip to negative territory in 2020 due to extraordinary challenges, before recovering to 13.62% in 2025. Consolidated net profit followed a similar pattern, rising from ₹7,065 crore in 2019 to ₹14,988 crore in 2025, with a significant trough in 2020 reflecting the pandemic’s impact.
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Cost Structure and Margins
Raw material costs have escalated from ₹25,490 crore in 2019 to ₹50,286 crore in 2025, reflecting both volume growth and commodity price inflation. Power costs, a significant expense for Vedanta, peaked at ₹30,950 crore in 2023 before easing to ₹22,599 crore in 2025. Other expenses have also increased steadily, reaching ₹35,501 crore in the latest fiscal year. Despite these rising costs, the company has managed to sustain healthy gross profit margins, which stood at 25.19% in 2025, up from 23.93% in 2019.
Interest expenses have risen in line with increased borrowings, from ₹5,689 crore in 2019 to ₹9,914 crore in 2025, impacting net profitability. Exceptional items have fluctuated, with a significant negative adjustment in 2020, but have been positive in recent years, supporting overall earnings.
Balance Sheet and Financial Position
Vedanta’s total liabilities have grown from ₹1,76,733 crore in 2020 to nearly ₹2,00,000 crore in 2025, driven largely by increased long-term borrowings which rose from ₹46,111 crore in 2020 to ₹52,712 crore in 2025. Short-term borrowings also expanded significantly, reflecting working capital needs. Shareholders’ funds have fluctuated, peaking at ₹65,383 crore in 2022 before declining to ₹41,212 crore in 2025, influenced by retained earnings and reserves movements.
The company’s net block of fixed assets has steadily increased, reaching ₹99,905 crore in 2025, supported by capital work in progress which nearly doubled from ₹16,837 crore in 2020 to ₹30,939 crore in 2025. This indicates ongoing investment in capacity expansion and asset enhancement.
Cash Flow and Liquidity
Vedanta’s cash flow from operating activities has shown consistent improvement, rising from ₹19,300 crore in 2020 to ₹39,562 crore in 2025, reflecting stronger core earnings and working capital management. However, cash flow from investing activities has been negative throughout, with a marked increase in outflows to ₹19,158 crore in 2025, signalling aggressive capital expenditure. Financing activities have also seen substantial outflows, particularly in recent years, as the company manages debt repayments and capital structure optimisation.
Despite these outflows, the company’s closing cash and cash equivalents improved to ₹3,993 crore in 2025 from ₹2,812 crore in 2024, indicating a modest strengthening of liquidity.
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Summary and Outlook
Overall, Vedanta’s historical performance reflects a company that has successfully expanded its revenue base and maintained profitability despite cyclical challenges and rising costs. The recovery from a loss-making position in 2020 to solid profits in subsequent years highlights operational resilience. The company’s investment in fixed assets and capital work in progress suggests a focus on long-term growth, although rising debt levels warrant close monitoring.
Investors should consider Vedanta’s improving cash flow generation and stable margins alongside its leverage profile when evaluating future prospects. The company’s ability to sustain earnings growth while managing costs and debt will be critical in maintaining its competitive position in the metals sector.
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