Synopsis: The Large-Cap shares rose 3% upon approval of a restructuring effective May 1, 2026, splitting into four companies: aluminium, power, oil & gas, and iron ore and the shareholders get 1:1 shares in each.
The shares of the large-cap stock, which specialises in the exploration, mining, processing, and manufacturing of metals, oil & gas, and energy, have been in the spotlight in today’s trade following the announcement of the record date, which also serves as the effective date for its composite scheme of arrangement.
With a market capitalisation of Rs. 3,02,273.00 crores on the day’s trade, the shares of Vedanta Ltd rose upto 3.1 percent, reaching a high of Rs. 794.90 per share compared to its previous closing price of Rs. 770.65 per share.
What happened
Vedanta Ltd, engaged in the exploration, mining, processing, and manufacturing of metals, oil & gas, and energy has approved a major corporate restructuring plan, setting May 1, 2026 as both the effective date and record date for its composite scheme of arrangement.
Under this plan, the company will demerge its businesses into four separate entities, Vedanta Aluminium Metal Limited (aluminium), Talwandi Sabo Power Limited (power), Malco Energy Limited (oil & gas), and Vedanta Iron and Steel Limited (iron ore). Shareholders of Vedanta will receive shares in each of these new entities in a 1:1 ratio, based on their existing holdings.
As part of the restructuring, certain debentures linked to the aluminium business will be transferred to Vedanta Aluminium Metal Limited, and two entities will be rebranded, Talwandi Sabo Power Limited will become Vedanta Power Limited, and Malco Energy Limited will become Vedanta Oil and Gas Limited, subject to approvals. Additionally, Vedanta will transfer its stake in Bharat Aluminium Company Limited (BALCO) to Vedanta Aluminium Metal Limited.
The BALCO transfer, expected to be completed by April 30, 2026, will be executed at fair market value, with consideration in the form of compulsorily convertible debentures. BALCO contributes about 10% of Vedanta’s turnover and 39% of its net worth, making it a significant part of the group. The transaction is classified as a related-party deal but is being conducted at arm’s length.
Financials & Others
The company’s revenue rose by 36.96 percent from Rs. 17,063 crore in December 2024 to Rs. 23,369 crore in December 2025. Meanwhile, the Net profit rose from Rs. 4,876 crore to Rs. 7,807 crore during the same period.
The company’s financial metrics appear strong when compared to the industry benchmark. Its Stock P/E ratio of 27.6 is lower than the Industry P/E of 36.5, suggesting the stock may be relatively more attractively valued compared to its peers. Additionally, a Return on Capital Employed (ROCE) of 25.3% and Return on Equity (ROE) of 38.5% indicate efficient use of capital and strong profitability.
It also maintains a very high dividend payout ratio of 243%, reflecting a generous distribution of earnings to shareholders. However, such a high payout may also warrant attention regarding sustainability, as it could imply the company is paying out more than its current earnings in dividends.
In Q3FY26, the Aluminium segment delivered strong performance with record alumina production of 794 kt, up 57% YoY and 22% QoQ. Cast metal aluminium production stood at 620 kt (up 1% YoY, flat QoQ), while cost of production improved to $1,674/t, down 11% YoY and 8% QoQ.
The Zinc business also performed well, with Zinc India achieving highest-ever Q3 mined metal production of 276 kt (up 4% YoY, 7% QoQ) and metal production of 270 kt (up 4% YoY, 9% QoQ). Zinc International mined output rose 28% YoY to 59 kt, led by Gamsberg production of 49 kt (up 40% YoY).
Other segments showed mixed growth: Oil & Gas production was 84.9 kboepd; Iron ore production rose to 1.2 MnT (up 3% YoY, 25% QoQ) and ferrochrome to 24 kt (up 32% YoY). Steel production increased 19% QoQ to 325 kt, copper cathode output was 45 kt (flat YoY, up 12% QoQ), and power sales surged 61% YoY due to new plant commissioning.
Vedanta Ltd is a major Indian multinational company headquartered in Mumbai. It operates mainly in natural resources and metals, including mining and processing of commodities like zinc, aluminium, iron ore, copper, oil & gas, and power generation. The company plays a key role in supplying raw materials used in infrastructure, energy, and manufacturing industries in India and globally.
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