Vedanta Q3 Results: Record Aluminium & Zinc Output Boosts Stock

Introduction to Vedanta's Strong Quarter

Vedanta Limited, the metals-to-mining conglomerate led by Anil Agarwal, announced a robust production update for the third quarter of the financial year 2025-26, setting new operational records. The company achieved its highest-ever quarterly output in aluminium, alumina, and zinc, signaling strong operational efficiency and growth. This performance has placed Vedanta's shares in the spotlight, reflecting positive investor sentiment. Following the announcement, the company's stock closed 2.45% higher at Rs 616.95 per share on the BSE, with a market capitalisation of Rs 2,41,251.39 crore.

Record-Breaking Aluminium and Alumina Performance

Vedanta's aluminium and alumina businesses delivered an exceptional performance in Q3 FY26. The company reported its highest-ever quarterly aluminium production of 620 kilotonnes (kt), a 1% year-on-year (YoY) increase. This growth was primarily driven by enhanced operational efficiencies at its Jharsuguda facility. The alumina segment saw even more substantial growth, with the Lanjigarh refinery producing a record 794 kt, marking a significant 57% YoY increase. This surge was attributed to the successful commissioning of Train II at the refinery. Over the first nine months of the fiscal year, alumina production jumped by 32% YoY, reaching 2,034 kt.

Zinc Operations Achieve New Milestones

Zinc India operations also set a new benchmark, delivering their best-ever third-quarter performance. Mined metal production reached 276 kt, up 4% YoY, while saleable metal production hit 270 kt, also a 4% YoY increase. This strong output was a result of higher ore production and the commissioning of debottlenecking projects at the Chanderiya and Dariba facilities. Refined zinc production grew by 8% YoY to 221 kt. Furthermore, saleable silver production stood at 158 metric tonnes, marking a 10% increase quarter-on-quarter. Zinc International operations contributed with a total mined metal production of 59 kt, a 28% YoY increase, driven by higher throughput at Gamsberg.

Power Segment and Other Businesses Deliver Growth

Vedanta's power segment demonstrated remarkable growth, with total power sales increasing by 40% YoY to 4,530 million units in Q3 FY26. This performance was significantly boosted by the commissioning and ramp-up of the Athena 600MW and Meenakshi 1000MW power plants. The Athena plant achieved a plant load factor of 72% after commencing commercial operations. Other business segments also showed strong operational improvements. The steel business achieved its highest-ever quarterly billet production of 285 kt. Iron ore saleable production rose by 3% YoY to 1.6 million tonnes, and pig iron production increased by 6% to 229 kt. Copper India operations recorded their highest quarterly cathode production in seven years at 45 kt.

Market Reaction and Analyst Outlook

The strong operational results were well-received by the market. Vedanta's shares rallied significantly, reflecting investor confidence. In December, brokerage firm Emkay Global had issued a 'Buy' rating for the stock with a target price of Rs 625 per share. The firm noted that the company's silver exposure was underpriced and that the recent stock run-up reflected a potential for earnings upgrades. The positive production figures reinforce this optimistic outlook, highlighting the company's ability to execute its operational strategy effectively and capitalize on market conditions.

Strategic Positioning and Future Plans

The Q3 FY26 results underscore Vedanta's position as a global leader in critical minerals and transition metals. As the world's largest integrated zinc producer and a top-tier aluminium producer, the company is crucial to supplying materials essential for the global energy transition. Looking ahead, Vedanta is focused on its strategic plan to demerge its businesses into six separate listed companies: aluminium, oil and gas, power, steel and ferrous, base metals, and an incubator for new businesses. This move is intended to unlock shareholder value by creating pure-play investment opportunities and improving management focus across its diverse portfolio.

Conclusion

Vedanta's record-breaking production in the third quarter of FY26 highlights its operational strength and efficiency across key segments. The highest-ever output in aluminium, alumina, and zinc, coupled with strong growth in the power and steel sectors, has solidified its market position and driven positive stock performance. As the company proceeds with its strategic demerger, investors will be closely watching its ability to sustain this momentum and unlock further value from its diversified asset base.