Vedanta shares slide 10% amid global selloff, fears of growth in metals sector

Vedanta shares slid 9.8% successful intraday commercialized to their day’s debased of Rs 362.20 connected the BSE amid a planetary selloff amid maturation concerns successful these uncertain and volatile times arsenic the US president, earlier successful the past week, imposed reciprocal tariffs connected assorted countries.

The continued imposition of a 25% U.S. tariff connected alloy and aluminium is apt to thrust up home prices successful the American market, undermining planetary competitiveness.

As exporters from countries specified arsenic Vietnam, South Korea, and Japan displacement their absorption to alternate markets similar India and the Middle East, Indian manufacturers are present contending with a question of low-cost imports. This influx is intensifying unit connected section producers, who are already struggling with shrinking margins and fluctuating accumulation levels.

A erstwhile enactment by Jefferies besides highlighted that portion the U.S. accounts for conscionable 4% of India’s alloy exports, it remains a cardinal sentiment driver—especially for companies similar Hindalco. This is owed to its subsidiary, Novelis, which contributes astir 13–15% of Hindalco’s consolidated EBITDA done its U.S.-focused operations.

Also read: History Repeats? US tariffs person ever preceded recessions, warns Nilesh Shah

Vedanta Q3 results

Vedanta Ltd had reported a 76% year-on-year (YoY) successful its consolidated nett net for the 4th ended December 31, 2024, to Rs 3547 crore. The nett is attributable to the owners of the company.

Meanwhile, the gross from operations accrued 10% YoY to Rs 38,526 crore.

Q4 preview

Domestic brokerage Nuvama projects a humble 2% year-on-year maturation successful Nifty 50 net for Q4FY25, with the full-year FY25 EPS maturation estimation reduced to 6%, down from the earlier forecast of 8%. The downgrade reflects continued net softness, sluggish gross growth, and escalating planetary uncertainties—particularly concerns surrounding the interaction of U.S. tariffs.

With this, Nuvama stated the sectors connected which it is underweight. The sectors included successful the database are Industrials, metals, IT, power, PSU banks.

For Vedanta, Nuvama said that the institution is expected to station a 2% sequential driblet successful EBITDA for Q4FY25, chiefly owed to a mixed inclination successful metallic prices. While aluminium prices roseate marginally by 0.8% quarter-on-quarter, zinc prices fell 7%, impacting wide realizations.

The study estimates Q4FY25 revenues astatine Rs 3,78,196 million, down 3% QoQ but up 7% YoY. EBITDA is forecast astatine Rs 1,08,346 million, showing a 2% diminution QoQ, and halfway PAT is projected astatine Rs 35,381 million, mostly level from the erstwhile quarter.

Higher alumina costs are expected to rise aluminium outgo of accumulation (CoP) by 5%, portion zinc CoP whitethorn diminution different 2%. Segment-wise, Nuvama anticipates EBITDA to autumn by 2.6% for aluminium, 2.1% for power, and 4.2% for lipid & gas, portion Zinc India and Zinc International whitethorn station humble increases of 0.2% and 1.8%, respectively.

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