Vedanta Reveals $10 Billion Capex, Eyes $8-10 Billion EBITDA

Mumbai, August 28, 2025 – Vedanta Ltd has planned a $10 billion capital expenditure programme in aluminium, zinc, oil & gas, steel and power, with commissioning cycles ranging from FY26 to FY28. The diversified miner stated the investments will enable it to earn $8–10 billion in annual EBITDA in the medium term.

Aluminium, Zinc Drive Growth

Vedanta has announced that its alumina refinery will be doubled to 5 million tonnes per year (MTPA) by FY26, with aluminium smelting capacity increasing to 3.1 MTPA by FY28. Its zinc business in India will contribute 1.38 MTPA of integrated capacity, while scaling up of silver refining is being done to 830 tonnes per year by FY29. Overseas, Gamsberg Phase II expansion will increase zinc concentrate production to 525,000 tonnes a year by FY26.

Oil, Steel and Power Expansion

In oil and gas, Vedanta is aiming at production of 125,000 barrels of oil equivalent per day supported by a reserves and resources base of 1.6 billion barrels. Its ESL Steel division will almost double hot metal capacity to 3.5 MTPA from 1.7 MTPA in FY28. Ferrochrome production is also likely to increase to 500,000 tonnes per year. On the power side, merchant power capacity will grow to 4.78 gigawatts by FY26, catering both to internal consumption and grid sales.

Financial Outlook

The firm anticipates aluminium to add around $4 billion to EBITDA, zinc, lead and silver up to $2.7 billion, oil and gas $0.7 billion, steel $0.65 billion and power $0.4 billion. Till June 30, Vedanta had already utilized ₹30,900 crore of its sanctioned ₹81,743 crore capex pipeline, with the remaining to be invested over the next three years.

Strategic Context

Vedanta added the expansion fits with India’s increasing commodity demand, with aluminium, zinc, steel and power predicted to grow 6–7% a year until 2030. Through its enhanced backwards integration in coal, bauxite and captive power, the group seeks to further strengthen cost leadership across the business.

REF: https://nsearchives.nseindia.com/corporate/VEDL_28082025145210_VEDLSEIntimationPPT28082025signed.pdf

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