VEDL
Large CapVedanta Limited
Metals
Vedanta Limited is a leading producer of metals, oil & gas, critical minerals, power, and technology, with operations across India, Africa, the Middle East, and East Asia. It supplies essential materials for global energy transition, industrial growth, and technological advancement, aiming for net-zero emissions by 2050 or sooner.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 77/100Rev +47% YoY · PAT +89% YoY · +15% QoQ · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹24,609 Cr | +47.5% | +15.3% |
| EBITDA | ₹7,559 Cr | +44.1% | +15.9% |
| Operating margin | 31.0% | +0 bps | +0 bps |
| PAT | ₹9,352 Cr | +88.5% | +19.8% |
| PAT margin | 38.0% | +827 bps | +141 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Vedanta reported best-ever Q4 FY26 financial performance with PAT up 89% YoY to ₹9,352 crore, EBITDA up 59% YoY to ₹18,447 crore, and Revenue up 29% YoY to ₹51,524 crore. Net Debt/EBITDA improved to 0.95x, the best in 14 quarters.
VEDL delivered record Q4 and FY26 results, driven by higher LME prices, increased volumes, and significant cost compression. The substantial deleveraging and reaffirmed credit ratings are positive. The demerger, effective May 1, 2026, is expected to sharpen capital allocation, but segment-specific leverage post-demerger warrants close monitoring.
Volume Expansion Across Key Businesses
PositiveRecord annual production in Aluminium, Alumina, Zinc India, Zinc International, IOB Pig Iron, and Ferro Chrome, reflecting improved operating efficiency and new capacity ramp-ups.
Cost Compression Initiatives
PositiveAchieved lowest costs in the last five years for Aluminium ($1,752/t) and Zinc business ($959/t), driven by operational excellence.
Strategic Growth Capex Deployment
PositiveDeployed ₹14,918 crore in growth capex in FY26, commissioning key projects for volume expansion, cost compression, and supply chain integration.
Demerger for Sharpened Capital Allocation
PositiveDemerger effective from May 1, 2026, is expected to sharpen capital allocation with a focus on maintaining healthy leverage and reinvesting free cash flows into scalable growth.
Lanjigarh Alumina Refinery Expansion
PositiveAlumina production at Lanjigarh refinery reached an exit run rate of 4 MTPA.
New BALCO Smelter Commissioning
PositiveCommissioning initiated for India’s largest 525 kA Smelter at BALCO (435 KTPA capacity).
Debari Roaster at Zinc India
Positive160 KTPA Debari Roaster commissioned in 1HFY26.
Power Capacity Additions
Positive1.3 GW of power capacity commissioned in FY26, including 1000 MW at Meenakshi and 600 MW at Athena.
Higher LME Prices
PositiveQ4FY26 consolidated revenue and EBITDA driven by higher LME prices for key commodities.
Increased Premiums
PositiveHigher premiums contributed to increased EBITDA in Q4FY26.
Forex Gains
PositiveForex gains contributed to increased EBITDA in Q4FY26.
Renewable Energy Adoption
PositiveRenewable energy use rising 52% YoY in FY26, supporting sustainability and potentially reducing energy costs.
Commodity Price Volatility
NeutralFuture fluctuations in LME and Brent prices could impact realizations and profitability, as seen in the EBITDA bridge sensitivity.
Demerger Execution and Credit Implications
NeutralCredit rating reaffirmed at AA/Watch with Developing Implications by CRISIL & ICRA, indicating potential uncertainties during the demerger process.
Oil & Gas Production Decline
NegativeAverage gross operated production for FY26 stood at 87.2 kboepd, a 16% YoY decline, primarily driven by natural decline.
Cambay Block PSC Extension Litigation
NeutralVedanta has challenged the rejection of PSC extension for Cambay block in Delhi High Court; the matter is sub-judice, creating operational uncertainty.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall annual growth and the impact of long-term strategies. QoQ comparison is vital in the cyclical metals sector to track sequential momentum in volumes, realizations, spreads, and the immediate effects of cost management and project execution.
Aluminium Production Volume
PositiveRecord annual Aluminium production at 2,456 kt, up 1% YoY.
Alumina Production Volume
PositiveRecord annual Alumina production at 2,916 kt, up 48% YoY, with exit run rate of 4 MTPA.
Zinc India Mined Metal Production
PositiveBest-ever annual mined metal at 1,114 kt, up 2% YoY.
Zinc International Mined Metal Production
PositiveAnnual Mined metal production at Zinc International jumps 27% YoY to 225 kt, with Gamsberg's annual production up 39% YoY to 185 kt.
Strong Operational Execution
PositiveFY26 was a year of strong execution for Vedanta, with record operational performance across the portfolio.
Positioning for Next Phase of Growth
PositiveThe quarter marks a defining point for Vedanta, with the demerger effective from May 1, 2026, positioning the company for its next phase of growth.
Strengthened Balance Sheet
PositiveThe balance sheet strengthened further with Net Debt to EBITDA improving to 0.95x, and credit ratings reaffirmed.
Commitment to Shareholder Returns
PositiveContinued to reward shareholders, paying a dividend of ₹34/share and delivering a Total Shareholder Return (TSR) of 48.6% in FY26.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Debt/EBITDA | 0.95x (Q4 FY26) | Post-demerger leverage ratios across the newly formed entities and adherence to debt servicing discipline. |
| Alumina Production Run Rate | 2,916 kt (FY26 annual production), 4 MTPA (exit run rate) | Sustained ramp-up to 4 MTPA and progress on the Lanjigarh expansion to 5 MTPA. |
| Gamsberg Phase 2 Commissioning | 93.6% project progress | Successful commissioning and production ramp-up in Q2 FY27 as targeted. |
| FY27 Growth Capex Execution | ₹14,918 crore (FY26) | Execution of the guided ₹17,000 – ₹19,000 crore capex for FY27, focusing on volume expansion and cost compression projects. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
45NeutralSMA20 -39.1% / mo · near 52W low
Technical chart
VEDLweekly · 6M-43.7%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 34.
- RSI(14) at 34 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 61% off 52W high · 14% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 12.7%.
- Cash flow contributes 8/10 to the score.
- Quality contributes 13/20 to the score.
Main drags
- Altman Z is 1.4, in distress territory.
- Fair-value margin of safety is negative at -36.4%.
- Growth is weaker at 3/25; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +3 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 70th percentile of the scored universe and 71st percentile within Metals. Main check: balance sheet trust is weak at 55/100.
Healthy Trust Lite: Promoter holding is 56.4%. Key concern: Altman Z is 1.43.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Metals: 71st pctile, median 68 · Large: 47th pctile, median 74
102 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 56.4%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 12.7%.
- ▸12 years of positive FCF.
Trust risks
- ▸Altman Z is 1.43.
- ▸ROCE trend is -4.2%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 13.90
- P/B
- 2.41
- EV/EBITDA
- 5.27
- Market Cap
- 119756.00Cr
Profitability
- ROE
- 19.00%
- ROCE
- 16.50%
- ROA
- 10.76%
- Dividend Y
- 14.20%
Growth (CAGR)
- Revenue 5Y
- -2.00%
- EPS 5Y
- -6.00%
- Revenue 3Y
- -19.00%
- EPS 3Y
- -7.00%
Balance Sheet
- Debt/Equity
- 0.56
- Interest Coverage
- 8.23×
- Altman Z
- 1.43
- Book Value
- 127.00
Cash Flow
- FCF Yield
- 12.66%
- FCF Positive Y
- 12/5
- OCF
- 39499.00 Cr
- EPS TTM
- 44.47
Shareholding
- Promoter Hold
- 56.38%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 74%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Metals — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.