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Vedanta anticipates its aluminium business EBITDA to double to $4 billion this fiscal year, driven by increased value-added products, raw material self-sufficiency, and new capacity. The company is expanding its smelting and refining capabilities, aiming for a 3.1 million tonne capacity and higher EBITDA margins. Additionally, Vedanta sold a 1. View More

Mumbai: Vedanta ’s earnings before interest, tax, depreciation and amortisation ( Ebitda ) in its aluminium business is expected to double to $4 billion this fiscal year, senior executives said. The sharp financial improvement will be anchored by a greater share of value-added products , self-sufficiency in raw materials, and the start of new smelting and refining capacities. With a more than 40% contribution to Vedanta ’s consolidated Ebitda, aluminium is the second-largest business for the company in terms of profitability, after its domestic zinc operations. Last fiscal, the aluminium business generated Ebitda of ₹17,798 crore, a growth of 84%. “Vedanta Aluminium is set to become a fully integrated producer, self-sufficient in raw materials, with a capacity of 3.1 million tonnes, and focussed on premium, value-added products,” said chief financial officer Ajay Goel and executive director Arun Misra, in the company’s latest annual report. “We expect this to improve our Ebitda margins to ~ $ 1,300/T, resulting into doubling the Ebitda at Aluminium Business to $ ~4 billion,” they said. In FY25, the aluminium business achieved Ebitda of $871 per tonne, sharply rising from $494 per tonne in the previous year. Live Events Vedanta is India’s largest producer of aluminium, with an output of 2.42 million tonnes last fiscal. An additional 435,000-tonne capacity is set to be commissioned at the company’s Balco smelter this year. Around 250,000 tonnes will also come in at Jharsuguda, Odisha, taking annual capacity to more than 3.1 million tonnes. At Lanjigarh, where Vedanta refines alumina, capacity expansion is underway, and the company plans to increase it to a total of 6 million tonne per year. For bauxite, Vedanta expects initial production from its Sijimali bauxite mine this year, while the Kurloi and Ghogharpalli mines are likely to be commissioned in a year. “We’re on track to increase value-added products to 90% of our aluminium output, which means higher margins and stronger market differentiation,” one of the executives said. In FY25, Vedanta sold 1.27 million tonnes of value-added products. Vedanta offloads 1.6% stake in HZL Vedanta sold a 1.6% stake, or 66.7 million shares, in unit Hindustan Zinc on Wednesday raising ₹3,028 crore. “As we actively progress towards the demerger of Vedanta into sector focused entities across diverse verticals, this capital raise will help de-leverage the balance sheet and enhance financial flexibility, enabling each of the demerged entities to pursue their independent growth plans,” the company said in an exchange filing. It held a 63.52% stake in Hindustan Zinc as of March-end. Vedanta pared its stake in Hindustan Zinc in 2024 as well, when it held a 64.92% stake in the company. Co to pay 1st interim dividend at ₹7/share Vedanta Wednesday announced its first interim dividend of ₹7 per share. This will lead to an outflow of ₹2,737 crore for the company. Of this, promoter Vedanta Resources is set to get around ₹1,544 crore, based on shareholding data as of March-end. Record date for the dividend payment has been set for June 24. Vedanta paid a total dividend of ₹43.50 per share in FY25. (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)