Vedanta's Q3 Results: What You Need to Know
Most investors panic-sold Vedanta today. That may be premature.
- Vedanta's consolidated net profit jumped 61% year-on-year to Rs 5,710 crore in Q3 FY26.
- The company's revenue from operations rose 37% year-on-year to Rs 23,369 crore during the quarter.
- Vedanta's EBITDA margin for aluminium reached $1,268 per ton, supported by record alumina and aluminium production.
- Zinc India recorded its highest-ever quarterly EBITDA of ₹6,064 crore, driven by record mined and refined metal output.
Vedanta's Sector Impact: A Broader Downturn in Metal Stocks
The Nifty Metal index tumbled nearly 5% today, amid a broader downturn in metal stocks, buoyed by profit booking, falling metal prices, and speculation of a hawkish Federal Reserve Governor.
Historical Pattern: What Happened Last Time Vedanta's Stock Fell
Historically, Vedanta's stock has bounced back strongly after sharp falls. In 2022, the stock fell over 15% in a single month, only to rise over 50% in the next six months.
Smart Money vs Retail Behavior: What Institutional Investors Are Doing
Institutional investors, such as ICICI Direct Research and Motilal Oswal Financial Services, have mixed views on Vedanta's stock. While some have maintained a 'Neutral' rating, others have increased their target price and maintained a 'Buy' call.
Peer Comparison: How Vedanta Stacks Up Against Its Peers
Vedanta's valuation multiples, such as EV/EBITDA and P/BV, are relatively low compared to its peers in the metals and mining sector.
Simple Technical Explanation: Why Vedanta's Stock Fell
The sharp fall in Vedanta's stock price can be attributed to a combination of factors, including profit booking, falling metal prices, and speculation of a hawkish Federal Reserve Governor.
Investor Playbook: What to Do Next
Bull Case: Vedanta's strong Q3 results, coupled with its deleveraging plans and expansion plans, could lead to a rebound in the stock price.
Bear Case: A further decline in metal prices, coupled with a hawkish Federal Reserve Governor, could worsen the stock's decline.
Short-term vs Long-term View: While the short-term outlook for Vedanta's stock may be uncertain, the long-term fundamentals of the company remain strong, driven by its diversified business portfolio and expansion plans.