DEAR STAKEHOLDERS,

It is a privilege to write to you at a moment of profound transformation for our company. Vedanta’s evolution over the last few decades has been nothing short of remarkable. From our origins as a single-asset business, we have evolved into a globally diversified natural resources group with strategic interests spanning metals, energy, and critical minerals. Our journey has been defined by ambition, resilience, and purpose and now, we are preparing to leap forward into Vedanta 2.0.

This new phase is guided by a clear vision: to transform Vedanta Group into a global powerhouse in transition metals, critical minerals, energy, and technology. We aim to play a central role in enabling the world’s energy transition even as we continue to meaningfully support the global growth story. Our vision is anchored in the principles of long-term value creation for our shareholders, our communities, and the planet.

Vedanta Limited (VEDL), is progressing with the creation of independent, pure-play businesses through a carefully planned demerger. This transformation will unlock value, enhance operational agility and enable each vertical to pursue focussed strategies with greater capital discipline and stakeholder alignment.

As a Group, we are investing in the future. Vedanta is overseeing an ambitious capital investment programme that mirrors our vision for the next stage of our global growth. This will see us focus on securing critical mineral assets that are crucial for the global energy transition and building scale in the high-growth segments that we operate in. These investments are not just about capacity building; they are about future-proofing the business.

Several projects at Vedanta Limited are scheduled for completion or commencement in 2026, including the second 1.5 million tonnes per annum train at Lanjigarh, a 4,35,000 tonnes smelter at BALCO, and the new value-added product capacity in aluminium business. These projects will contribute significantly to Vedanta’s long-term value creation

FY 2024-25 stood out as a year of strong operational and financial performance. Vedanta Limited recorded its highest-ever revenue of ₹ 1,50,725 crore, with EBITDA rising 19% YoY to ₹ 43,541 crore, delivering industry-leading margins of 34%, all amidst a volatile macroeconomic environment.

Our aluminium and zinc operations continued to maintain their industry-leading cost positions, ranking in the global top quartile and decile respectively. Our Zinc International business, Iron Ore, and Steel also delivered improved performance, reaffirming Vedanta’s position as a leader across multiple sectors.

At our Parent Level, Vedanta Resources (VRL) has firmly established itself as one of the most proactive companies in terms of executing strategic corporate actions. Over the course of the year, VRL raised US$ 0.5 billion through a stake sale in VEDL and refinanced its US$ 3.1 billion bond portfolio at a lower cost and built upon longer maturities, at significantly improved terms. At the Vedanta Group level, which includes VRL & VEDL, these actions have supported it in deleveraging the balance sheet by US$ 1.2 billion - US$ 0.7 billion at VRL and US$ 0.5 billion at VEDL. As a result, the total debt at VRL has decreased to ~US $ 5 billion, the lowest level in a decade, and the Group level leverage has improved to 2x from 2.7x a year ago.

In FY 2024-25, VRL have also seen significant improvements in our credit ratings. VRL was upgraded by three notches to B+ (from CCC+) by S&P and Moody's and Fitch Ratings upgraded to B+, while both CRISIL and ICRA upgraded VEDL to AA (from AA-). These upgrades reflect growing confidence in our strategy, financial discipline and operational excellence.

We also continued to strengthen our upstream portfolio. VEDL's hydrocarbon division, Cairn Oil & Gas, secured seven new blocks under the Government of India's latest Open Acreage Licensing Policy (OALP) round. In parallel, the company won six new critical mineral blocks across four rounds of national auctions, further reinforcing our role in securing resources for the global energy transition.

Looking ahead at FY 2025-26, we will continue to move forward with a focussed strategy and renewed energy. Our efforts will be directed towards scaling volumes, unlocking further cost efficiencies, advancing our high-impact growth projects in India and overseas, and completing the demerger to unlock long-term stakeholder value.

Our commitment to Environmental, Social, and Governance (ESG) leadership is unwavering. Across our portfolio companies, we are embedding sustainability into every aspect of strategy and operations. One of our key ESG priorities is achieving our Net Zero goals by 2050 or sooner. In FY 2024-25, we made significant progress by securing power delivery agreements for 1.9 GW of renewable energy. This capacity will come online in the next few years and enable emission reductions at our key businesses. We also topped the charts in the S&P Global Corporate Sustainability Assessment (CSA) 2024 - Hindustan Zinc Limited was ranked 1^st globally in the metals and mining sector, and Vedanta Aluminium ranked 2^nd in the aluminium sector.

We are equally focussed on social impact, where our communities continue to be one of our central priorities. We are proud to have directly benefited 26 million women and children, while also empowering 1.46 million families through skills training. These efforts are central to our mission of fostering inclusive growth and creating lasting value in the communities we serve.

We remain deeply committed to creating a diverse and inclusive workplace, with gender diversity being a key pillar of our people strategy. In line with our aspiration to achieve 30% women representation across our workforce by 2030, we have made strong progress with 21% of our current workforce being women and 28% of leadership roles held by women.

Another key priority and one of our core values has been our employees' health and safety. This underpins everything we do. Our collective commitment is clear: Zero Fatality. This is not just a slogan, but a shared responsibility of everyone at Vedanta. Every leader at Vedanta is accountable for challenging and improving our already high standards of safety and care, every single day.

While the global environment remains dynamic, Vedanta is well-positioned to weather volatility. Our exposure to structurally sound, high-growth markets and our diversified portfolio of commodities and our commitment to cost excellence provide a strong foundation for robust performance. We see near-term challenges as opportunities to strengthen competitiveness, innovate, and accelerate our transformation.

I firmly believe that Vedanta represents one of the most compelling growth platforms in the global natural resources sector today. Our vision is bold, our foundation is strong, and our conviction is clear. As we evolve today, we are shaping a tomorrow that is greener, stronger, and more inclusive for our stakeholders and for generations to come.

Thank you for your continued trust and support.

Warm regards,

Deshnee Naidoo

Chief Executive Officer