Vedanta Stock Sinks 7%—Here’s What Triggered the Fall

Vedanta Shares Slide Over 7% Despite Production Gains; Tariff Concerns Weigh

Vedanta’s stock tumbled over 7% on April 4, despite reporting moderate growth across key segments in its latest business update. At 12:27 PM, shares were trading at ₹406.65 apiece on the NSE, down 7.47%. Investor sentiment remained muted amid ongoing concerns around US tariff policies and commodity market pressures.

Key Operational Highlights

Aluminium: Annual production rose 2% YoY to 2,421 kt in FY25, with Q4 output up 1% YoY. However, this marginal growth failed to lift investor confidence.
Alumina: Production jumped 9% YoY, driven by capacity expansion, though Q4 output was hit by unplanned supply chain disruptions—later resolved by the end of the quarter.
Zinc India: Achieved record mined metal production at 1,095 kt and refined metal at 1,052 kt (+2% YoY), supported by better plant performance.
Zinc International: Mined metal output surged 52% YoY and 9% QoQ, aided by higher throughput at Gamsberg and improved grades at BMM.
Oil & Gas: Output from OALP blocks reached 3.5 kboepd in Q4, with annual gross operated production at 103.2 kboepd.
Iron Ore: Q4 production jumped 36% QoQ, thanks to inventory use at IOK and increased mining at IOG.
Steel: Q4 steel output rose 4% YoY and 8% QoQ, driven by improved hot metal production and operational efficiency.
Copper: Q4 production surged 41% YoY, with full-year output up 6%.

Market Reaction and Tariff Fears

Despite the operational improvements, investors remained wary amid fears surrounding US tariff moves under former President Trump. While metals like aluminium and steel were exempt from recent reciprocal tariff announcements, earlier 25% US tariffs still weigh on the sector, creating uncertainty for industrial metal exporters like Vedanta.

The company’s stock has declined over 12% in the past five sessions and more than 20% in the last six months. However, it remains up 31% on a one-year basis. Vedanta’s current market capitalization stands at ₹1.51 lakh crore, per NSE data.

Demerger Update

Vedanta recently received shareholder and creditor approval to split into five independent, sector-specific companies. Over 99% of stakeholders voted in favor of the demerger, which Chairman Anil Agarwal believes will unlock significant long-term value.

In a letter to shareholders, Agarwal stated that each of the demerged entities has the potential to become a $100 billion business, driven by Vedanta’s “sector leadership, global expertise, and financial discipline.”