Synopsis: Rising aluminium prices, fueled by Middle East tensions, could boost Vedanta Ltd, with CLSA projecting a potential upside of 44% to Rs. 1,030 per share, highlighting its strong exposure in aluminium.
The shares of this company are engaged in the exploration, production and sale of zinc, lead, silver, copper, aluminium, iron ore and oil & gas and has presence across India, South Africa, Namibia, Ireland, Liberia & UAE are in focus after CLSA highlighted it as one of the best-positioned companies to benefit from Middle East tensions and gave an upside of 44% from current levels.
With a market capitalisation of Rs. 2,80,962 cr, the shares of Vedanta Ltd closed at Rs. 718.5 per share, down by 0.53% in today’s market session, from its previous close of Rs. 722.30 per share.
What’s the News
Rising aluminium prices could create significant upside for Vedanta Limited. A prolonged conflict in the Middle East has the potential to push energy and transportation costs higher, tightening the global supply of energy-intensive metals and making aluminium particularly vulnerable. With around 9% of global aluminium capacity located in the Middle East, any disruption could lead to substantial price gains.
Brokerage firm CLSA has highlighted Vedanta Limited as one of the best-positioned companies to benefit from such a scenario, given its diversified exposure to aluminium, zinc, and oil. CLSA’s analysis suggests an implied value of Rs. 1,030 per share, reflecting a 44% upside, compared with a base-case estimate of Rs. 835, which represents a more modest 15% potential gain.
Despite these risks and opportunities, metals markets have mostly weakened this week. Aluminium was an exception, rising, which reinforces the case for potential upside in companies like Vedanta Limited that are exposed to this metal.
About the company
Vedanta Ltd is one of the leading Indian natural resources and metals companies, with operations spanning zinc, copper, aluminium, iron ore, oil & gas, and power. It focuses on integrated mining and metal production, supplying both domestic and international markets.
It reported strong YoY growth in Q3 FY26. Revenue from operations rose 19% to Rs. 45,899 crore from Rs. 38,526 crore, while other operating income increased 28% to Rs. 752 crore. EBITDA jumped 34% to Rs. 15,171 crore from Rs. 11,284 crore, with the margin expanding to 41% from 34%. Profit before tax surged 65% to Rs. 11,010 crore, and profit after tax rose 60% to Rs. 7,807 crore from Rs. 4,876 crore, reflecting robust operational performance. Finance costs declined 11%, partially offset by a slight drop in investment income.
Compared to Q2FY26, Q3 revenue from operations increased 17% to Rs. 45,899 crore, with other operating income up 16% to Rs. 752 crore. EBITDA rose 31% to Rs. 15,171 crore, and the margin expanded 7 percentage points to 41%. Profit before tax increased 57% to Rs. 11,010 crore, while profit after tax more than doubled, 124% to Rs. 7,807 crore.
Vedanta Ltd achieved record quarterly alumina production of 794 kt, up 57% YoY and 22% QoQ, while cast aluminium production reached 620 kt, up 1% YoY and stable QoQ. The cost of production declined to $1,674/t, down 11% YoY and 8% QoQ.
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