Vedanta Limited just reported one of its strongest quarterly production updates ever. But on the very next day, the stock fell over 8%. This left many investors scratching their heads. If the business is doing well, why is the share price dropping?
Let’s dig into the latest Vedanta share news, explore what’s driving the current Vedanta share price, and what investors need to know from here.
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Vedanta’s Q4 and FY25 highlights
Vedanta’s numbers for the fourth quarter and the full year FY25 were impressive across the board.
The aluminium business crossed 2,421 kt in output—up 2% YoY. Alumina rose 9% for the year, though some temporary disruptions affected Q4 before normalising.
Zinc production hit historic highs, both mined and refined, while Zinc International reported a 52% jump YoY in mined metal. Gamsberg mine played a significant role, with an 89% YoY increase in Q4.
Copper India reported a standout 41% increase in Q4 output. Pig iron and steel were also delivered, backed by better hot metal production. The power division saw notable growth, with TSPL clocking 81% availability.
By all measures, it was a strong finish to FY25.
Also read: Vedanta Demerger: Opportunities for Retail Investors
The stock drops 8% – what happened?
Despite the positive numbers, the Vedanta share price fell sharply on April 4, dropping over 8% intraday to ₹403.50. For context, Vedanta is now:
- 23% below its 52-week high of ₹527 (hit in Dec 2024)
- Up 34% from its 52-week low of ₹301.70 (April 2024)
- Up 47% YoY overall
- Gained 17% in March after 5 months of losses
So why did the stock fall?
It wasn’t about company performance. It was broader market sentiment especially towards metal stocks. The Nifty Metal index itself was down ~4%. Global factors, weak cues, and fears of lower demand impacted all metal counters.
Vedanta simply underperformed in that context.
You may also read: Vedanta vs Hindustan Zinc: Share price and financial results
The bigger picture: Demerger, expansion, and long-term outlook
Beyond quarterly numbers, Vedanta is undergoing a major transition.
The company is in the process of splitting into five separate entities, each focused on one vertical:
- Vedanta Aluminium
- Vedanta Oil & Gas
- Vedanta Power
- Vedanta Steel & Ferrous
- Vedanta Base Metals
The demerger, originally expected to be completed by March 31, 2025, has now been extended to September 30, 2025, pending regulatory approvals.
At the same time, Vedanta has laid out a $20 billion expansion plan over the next three years. This capital will be spread across core businesses—aluminium, copper, zinc, steel, oil & gas, and power.
To fund this, Vedanta has earmarked ₹30,000 crore through internal accruals, dividends, and institutional placements. It’s a bold bet but also a strategic one aimed at long-term growth.
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Final word
If you’re already holding, this may not be the time to panic. The company has strong fundamentals, aggressive expansion plans, and is actively unlocking value through its demerger.
If you’re watching from the sidelines, the ₹390–₹400 zone may offer an entry opportunity—especially if global sentiment improves and the Vedanta share price bounces above ₹424.
The current dip doesn’t reflect weakness in the business. It’s more about the market mood. In that sense, it’s not a red flag—but maybe a yellow one worth keeping an eye on.
