Vedanta Ltd
Vedanta Ltd
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BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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51 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
4- Company has reduced debt.
- Company is expected to give good quarter
- Company has a good return on equity (ROE) track record: 3 Years ROE 31.0%
- Company has been maintaining a healthy dividend payout of 150%
Weaknesses
5- Promoter holding has decreased over last quarter: -1.66%
- The company has delivered a poor sales growth of -2.28% over past five years.
- Contingent liabilities of Rs.31,673 Cr.
- Company might be capitalizing the interest cost
- Earnings include an other income of Rs.14,343 Cr.
Growth Rate
AI Analysis — Bull vs Bear
Vedanta Ltd trades at a PE of 3.9x with a market cap of ₹1,11,309 Cr and offers a dividend yield of 11.99%. The company has delivered strong profit growth of 37% TTM and maintains a 3-year ROE of 31%, but revenue growth has been negative at -2% over five years with significant other income of ₹14,343 Cr contributing to earnings.
- Extremely low PE ratio of 3.9x suggests deeply discounted valuation relative to earnings power
- Dividend yield of 11.99% with a healthy payout ratio of 150%, providing significant income return to shareholders
- TTM profit growth of 37% indicates strong earnings momentum in recent quarters
- 3-year ROE of 31% and last year ROE of 38% demonstrate consistently high capital efficiency
- Stock CAGR of 82% over 1 year and 49% over 3 years reflects strong market re-rating
- Company has reduced debt levels, improving balance sheet strength and reducing financial risk
- 10-year compounded profit growth of 13% shows long-term earnings compounding despite commodity cycles
- Company is expected to deliver a good upcoming quarter based on operational trends
- Compounded sales growth of -2% over 5 years and -19% over 3 years signals persistent revenue contraction
- Other income of ₹14,343 Cr forms a substantial portion of earnings, raising questions about core operating profit quality
- Promoter holding decreased by 1.66% in the last quarter, indicating potential dilution or lack of promoter confidence
- TTM sales growth of only 2% despite commodity price recovery suggests volume or pricing challenges
- Company might be capitalizing interest costs, which could understate true operating expenses and inflate reported profits
- Price-to-book ratio of 2.23x for a cyclical commodity business exposes downside risk if commodity prices decline
- 5-year stock CAGR of only 19% versus 3-year CAGR of 49% suggests most returns are recent and potentially cyclical
- 150% dividend payout ratio exceeds 100% of earnings, raising sustainability concerns if profits normalize
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- $35M DGH demand on OALP block Jul 21
DGH issued a ~USD 35 million plus interest demand over an OALP block extension dispute related to Vedanta's upstream oil and gas operations. Company has not disclosed its response strategy.
- Q1FY27 profit surges 152% YoY Jul 30
Vedanta reported consolidated net profit of ₹7,918 crore for Q1FY27 (standalone PAT ₹5,294 crore, up 152% YoY) with EBITDA of ₹8,469 crore, driven by higher LME prices and volumes. Credit rating upgraded to AA+.
- Hindustan Zinc profit up 145% Jul 26
Subsidiary Hindustan Zinc reported Q1FY27 net profit of ₹5,469 crore, up 145% YoY, driven by higher zinc and silver revenues.
- Promoter rescinds facility agreement Aug 8
Promoter group fully repaid and rescinded the December 30, 2025 facility agreement, lifting all operational restrictions on Vedanta Limited.
- Board revamp and ESOP launch Jul 30
Vedanta re-appointed two directors, designated four new SMPs, and launched ESOP 2026 and ESPP 2026 covering up to 5% of paid-up share capital.
- ₹8 interim dividend declared Jul 30
Vedanta Aluminium Metal declared ₹8 per share interim dividend for FY27 (~₹3,128.55 crore payout) with record date August 5, 2026, backed by Q1 EBITDA of ₹10,499 crore.
- Real estate demerger approved Jul 30
Board approved demerger of ~2,200 acres into Vedanta Property Platforms Limited (VPPL); shareholders get 1 VPPL share per 20 Vedanta shares held.
- Aluminium to drive 50% dividends Jul 30
A Vedanta executive stated the aluminium metal project is expected to contribute about 50% of overall dividend distribution going forward.
- Wins 152-hectare manganese block in AP Aug 14
Vedanta secured the Punnam manganese block (152 hectares, G4 stage) in Andhra Pradesh via e-auction, aiming to reduce manganese import reliance.
- ESG rating moderate at 55-57 Aug 11
Vedanta received an NSE ESG rating of 55 (Moderate) for FY26 and a separate ESGRisk.ai score of 57 (Adequate) as of July 21, 2026.
- Investor meets in Mumbai scheduled Aug 7
Vedanta will participate in group investor meetings at Emkay Confluence (Aug 12) and Motilal Oswal conference (Aug 17) in Mumbai.
TL;DR: Vedanta delivered a standout Q1FY27 with consolidated profit nearly doubling YoY, credit upgrades to AA+, and strong subsidiary performance from Hindustan Zinc. The promoter lifting encumbrances and the real estate demerger signal improving corporate governance and value unlocking. The only notable risk is a USD 35M DGH demand on an upstream block, which is manageable relative to earnings scale. The trend is clearly improving with strong commodity tailwinds and deleveraging momentum heading into H2FY27.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 33,733 | 38,945 | 35,541 | 35,509 | 35,764 | 37,634 | 17,063 | 16,686 | 15,754 | 18,747 | 21,337 | 24,609 | 24,205 |
| Expenses | 27,313 | 27,466 | 27,010 | 26,741 | 25,819 | 27,806 | 12,050 | 11,440 | 11,478 | 13,832 | 14,816 | 17,050 | 15,704 |
| Operating Profit | 6,420 | 11,479 | 8,531 | 8,768 | 9,945 | 9,828 | 5,013 | 5,246 | 4,276 | 4,915 | 6,521 | 7,559 | 8,501 |
| OPM % | 19% | 29% | 24% | 25% | 28% | 26% | 29% | 31% | 27% | 26% | 31% | 31% | 35% |
| Other Income | 2,326 | 1,863 | 779 | 385 | 934 | 3,168 | 3,202 | 2,771 | 2,737 | 1,248 | 4,426 | 5,503 | 3,166 |
| Interest | 2,110 | 2,523 | 2,417 | 2,415 | 2,222 | 2,667 | 1,073 | 1,071 | 609 | 1,033 | 547 | 694 | 662 |
| Depreciation | 2,550 | 2,642 | 2,788 | 2,743 | 2,731 | 2,696 | 1,238 | 1,191 | 1,116 | 1,303 | 1,239 | 1,332 | 1,192 |
| PBT | 4,086 | 8,177 | 4,105 | 3,995 | 5,926 | 7,633 | 5,904 | 5,755 | 5,288 | 3,827 | 9,161 | 11,036 | 9,813 |
| Tax % | 19% | 111% | 30% | 43% | 14% | 27% | 17% | 14% | 16% | 9% | 15% | 15% | 19% |
| Net Profit | 3,308 | -915 | 2,868 | 2,275 | 5,095 | 5,603 | 4,876 | 4,961 | 4,457 | 3,479 | 7,807 | 9,352 | 7,918 |
| EPS in Rs | 7.1 | -4.8 | 5.42 | 3.68 | 9.7 | 11.13 | 9.07 | 8.91 | 8.14 | 4.6 | 14.6 | 17.13 | 14 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 73,710 | 64,262 | 72,225 | 91,866 | 92,048 | 84,447 | 88,021 | 1,32,732 | 1,47,308 | 1,43,727 | 62,717 | 78,437 | 88,898 |
| Expenses | 51,595 | 82,741 | 50,849 | 66,989 | 68,877 | 63,704 | 60,703 | 87,908 | 1,12,877 | 1,08,415 | 44,139 | 55,254 | 61,402 |
| Operating Profit | 22,114 | -18,479 | 21,376 | 24,877 | 23,171 | 20,743 | 27,318 | 44,824 | 34,431 | 35,312 | 18,578 | 23,183 | 27,496 |
| OPM % | 30% | -29% | 30% | 27% | 25% | 25% | 31% | 34% | 23% | 25% | 30% | 30% | 31% |
| Other Income | -19,222 | 4,290 | 4,423 | 6,087 | 4,270 | -14,932 | 2,743 | 1,832 | 2,625 | 5,241 | 12,739 | 14,186 | 14,343 |
| Interest | 5,659 | 5,778 | 5,855 | 5,112 | 5,689 | 4,977 | 5,210 | 4,797 | 6,225 | 9,465 | 4,197 | 2,817 | 2,936 |
| Depreciation | 7,159 | 8,572 | 6,292 | 6,283 | 8,192 | 9,093 | 7,638 | 8,895 | 10,555 | 10,723 | 4,233 | 4,810 | 5,066 |
| PBT | -9,925 | -28,540 | 13,652 | 19,569 | 13,560 | -8,259 | 17,213 | 32,964 | 20,276 | 20,365 | 22,887 | 29,742 | 33,837 |
| Tax % | 15% | -37% | 17% | 30% | 28% | -43% | 13% | 28% | 28% | 63% | 10% | 16% | — |
| Net Profit | -11,369 | -17,862 | 11,316 | 13,692 | 9,698 | -4,744 | 15,032 | 23,710 | 14,503 | 7,539 | 20,535 | 25,096 | 28,556 |
| EPS in Rs | -52.77 | -41.39 | 23.47 | 27.82 | 19.01 | -17.93 | 31.21 | 50.58 | 28.45 | 11.4 | 38.33 | 44.47 | 50.33 |
| Div. Payout % | -8% | -8% | 83% | 76% | 99% | -22% | 30% | 89% | 357% | 259% | 113% | 76% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 296 | 296 | 297 | 372 | 372 | 372 | 372 | 372 | 372 | 372 | 391 | 391 |
| Reserves | 53,579 | 43,743 | 60,128 | 62,940 | 61,925 | 54,263 | 61,906 | 65,011 | 39,051 | 30,350 | 40,821 | 49,261 |
| Borrowings | 77,752 | 67,778 | 71,569 | 58,159 | 66,226 | 59,187 | 57,669 | 53,583 | 80,329 | 87,706 | 91,479 | 32,947 |
| Other Liabilities | 58,654 | 80,163 | 64,952 | 58,896 | 70,045 | 66,915 | 63,549 | 74,981 | 69,703 | 69,690 | 67,249 | 1,49,712 |
| Total Liabilities | 1,90,281 | 1,91,980 | 1,96,946 | 1,80,367 | 1,98,568 | 1,80,737 | 1,83,496 | 1,93,947 | 1,89,455 | 1,88,118 | 1,99,940 | 2,32,311 |
| Fixed Assets | 70,108 | 67,231 | 76,756 | 80,279 | 96,397 | 88,904 | 90,470 | 93,466 | 95,744 | 98,963 | 99,905 | 30,548 |
| CWIP | 38,748 | 38,461 | 27,557 | 32,055 | 24,959 | 18,585 | 16,314 | 15,879 | 19,529 | 22,889 | 33,896 | 10,531 |
| Investments | 39,606 | 53,386 | 46,962 | 28,700 | 33,065 | 24,753 | 16,660 | 17,291 | 13,150 | 11,869 | 14,532 | 15,418 |
| Other Assets | 41,819 | 32,903 | 45,671 | 39,333 | 44,147 | 48,495 | 60,052 | 67,311 | 61,032 | 54,397 | 51,607 | 1,75,814 |
| Total Assets | 1,90,281 | 1,91,980 | 1,96,946 | 1,80,367 | 1,98,568 | 1,80,737 | 1,83,496 | 1,93,947 | 1,89,455 | 1,88,118 | 1,99,940 | 2,32,311 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 17,805 | 20,377 | 18,083 | 17,366 | 23,754 | 19,300 | 23,980 | 34,963 | 33,065 | 35,654 | 39,562 | 39,499 |
| Investing | -4,133 | -7,868 | 2,681 | 15,480 | -10,594 | -5,925 | -6,678 | -2,243 | -668 | -13,676 | -19,158 | -24,134 |
| Financing | -13,956 | -11,303 | -12,425 | -39,255 | -10,242 | -15,547 | -17,565 | -28,903 | -34,142 | -26,092 | -19,223 | -13,549 |
| Net Cash Flow | -284 | 1,206 | 8,339 | -6,409 | 2,918 | -2,172 | -263 | 3,817 | -1,745 | -4,114 | 1,181 | 1,816 |
| Free Cash Flow | 7,231 | 14,965 | 12,648 | 10,070 | 14,937 | 11,631 | 17,262 | 24,658 | 19,411 | 19,097 | 22,848 | 18,747 |
| CFO/OP | 96 | -124 | 109 | 83 | 114 | 99 | 96 | 91 | 114 | 109 | 230 | 205 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 18 | 14 | 11 | 16 | 16 | 12 | 14 | 14 | 10 | 9 | 21 | 6 |
| Inventory Days | 129 | 132 | 161 | 135 | 184 | 184 | 153 | 147 | 124 | 107 | 234 | 66 |
| Days Payable | 78 | 267 | 308 | 202 | 242 | 275 | 245 | 221 | 91 | 83 | 165 | 88 |
| Cash Conversion Cycle | 69 | -120 | -136 | -51 | -42 | -80 | -77 | -61 | 43 | 33 | 90 | -16 |
| Working Capital Days | -121 | -219 | -338 | -182 | -212 | -186 | -150 | -82 | -120 | -107 | -243 | -121 |
| ROCE % | 9% | -14% | 11% | 15% | 14% | 10% | 17% | 28% | 20% | 21% | 12% | 16% |
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Company Information
Vedanta Ltd is a diversified natural resource group engaged in exploring, extracting and processing minerals and oil & gas. The group engages in the exploration, production and sale of zinc, lead, silver, copper, aluminium, iron ore and oil & gas. It has presence across India, South Africa, Namibia, Ireland, Liberia & UAE. Its other businesses includes commercial power generation, steel manufacturing & port operations in India and manufacturing of glass substrate in South Korea and Taiwan.[1] Presently, India accounts for ~65% of total revenues, followed by Malaysia (9%), China (3%), UAE (1%) and others (22%).[2]