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•  Backed by robust growth in Infra, Auto, Power, Defence & Energy Transition

•  Company is in the harvest phase of its ₹27,712 crore investment parcel

Vedanta’s Aluminium business, India’s largest aluminium producer with half of the domestic aluminium market share among primary producers, is well positioned to benefit from India’s accelerating aluminium demand, which is growing at 6% annually, significantly ahead of global averages.

Aluminium, the second most important metal in the world, is known for its lightweight, corrosion-resistant and recyclable properties, with over 3,000 industrial applications. However, in India, there are only 300 applications for which aluminium is being currently used, providing an immense opportunity for the growth of the metal’s consumption. With India emerging as a high-growth aluminium market, domestic demand expansion is expected to outpace global trends over the medium term.

Vedanta is ramping up capacity and planning to operationalise captive mines, strengthening raw material security while positioning aluminium as a critical input for infrastructure, automotive, aerospace, power transmission and clean-energy hardware, betting that its central role in the energy transition will drive sustained domestic demand despite global volatility. This includes the expansion of its Bharat Aluminium Company (BALCO) smelter by 435 KT taking it to a million tonnes, thus strengthening its ability to cater to rising domestic demand. A higher share of sales in the Indian market is expected to support margin expansion, given stronger realizations compared to export markets.

Structural Advantage

Vedanta’s bid for a larger market share is also being shaped by a sharp pivot toward higher-margin, value-added products, with the goal of lifting its sales share to more than 90%. These comprise a range of new product lines that are poised to fulfil India’s rising aluminium demand across high growth sectors. These include billets for building & contruction, railways, auto and clean energy; rolled products manufactured at Bharat Aluminium Company (BALCO), serving automotive, electrical, power, insulation and packaging sectors; and Primary Foundry Alloys catering to both auto sector and advanced manufacturing. All products are available through Vedanta MetalBazaar, the world’s largest metals marketplace offering its full range of premium ferrous and non-ferrous metals under one roof. Top of Form

Vedanta Aluminium’s comprehensive product portfolio spans hot and liquid metal, wire rods, ingots and alloy ingots, billets, slabs, rolled products, sow ingots, aluminium silicon (AlSi) T-ingots, flip coils and its low carbon variant - Restora & Restora Ultra. The breadth of this portfolio positions the company to serve both traditional and sunrise industries across domestic and export markets.

The shift to value added products is aimed at India’s fastest-growing aluminium end markets, where consumption is rising at an accelerated pace benefitting from the country's fast economic growth. Policy-led electrification, including a target of 30% electric-vehicle penetration by 2030, along with a push to use domestically produced raw materials in manufacturing, are shaping demand for premium aluminium. Bottom of Form

Beyond cost and product mix, Vedanta’s manufacturing assets are strategically co-located near key raw material sources and major ports, ensuring a secure and efficient supply chain. This proximity enables reliable, timely deliveries to customers in India and abroad while reducing logistics risks and costs.

Low Cost of Production

Vedanta Aluminium’s high domestic market share is underpinned by a backward integration strategy targeting production costs of around $1,500 per tonne. In Q3FY26, Vedanta Aluminium recorded a hot metal cost of $1,674 per tonne, the lowest in the past seventeen quarters and ahead of its full-year guidance range of $1,700–$1,750 per tonne. It recorded the highest-ever quarterly & nine-month aluminium production at 620 KT & 1,842 KT, respectively, and delivered the best-ever quarterly EBITDA margin at $1,268 per tonne.

Vedanta is executing an aggressive vertical integration blueprint through the operationalisation of secured bauxite (aluminium ore) resources and five coal blocks. This is expected to unlock structural cost advantages that will reduce hot metal production costs from Q2FY26 levels of $1,826 per tonne to the design target of $1,500 per tonne. Upon achieving this target, Vedanta is expected to be positioned within the global first decile of the cost curve.

Capital Deployment

With most of Vedanta Aluminium’s announced capital expenditure of nearly ₹30,000 crore to ramp up production already deployed, the company is now entering the harvest phase of its investment cycle. As incremental volumes come on-stream and value-added sales rise, the company expects improved operating leverage, stronger cash flows and better returns on capital, marking the end of a heavy investment phase and the beginning of a returns-led growth cycle.

In parallel, Vedanta Aluminium is also developing a ₹1.3 trillion greenfield aluminium smelter in Dhenkanal, Odisha, which will comprise a 3 MTPA smelter along with a 4,900 MW captive power plant, significantly enhancing India’s global aluminium production capacity.

Vedanta Aluminium is set to be demerged from Vedanta Ltd. as part of the conglomerate’s ongoing restructuring, which will create four additional listed entities. The management stated on the recent earnings call that it is targeting mid-May for potential listing of demerged companies. Based on FY28 estimates, brokerages such as Nuvama expect Vedanta Aluminium to trade at a 6.5x valuation multiple.