Vedanta
Vedanta
Metals & Mining F&OKey Fundamentals
MidcapDiversified MetalsMetals & MiningTapetide Score
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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 has a market capitalisation of about Rs.1,04,290 Cr and trades at a P/E of 3.7x and a P/B of 2.11x, with a dividend yield of 12.71%. Profit has grown at a 37% TTM rate and ROE was 38% last year, while sales have shrunk at a -19% CAGR over 3 years. Other income of Rs.14,343 Cr and contingent liabilities of Rs.31,673 Cr are large relative to the company's size.
- Profitability is high and has held up over time: ROE was 38% last year, 31% on a 3-year average, 28% over 5 years and 21% over 10 years.
- Shareholders receive a lot of cash: the dividend yield is 12.71% and the reported payout ratio is 150%, which works out to roughly Rs.13,000+ Cr a year at the current market cap.
- The headline valuation is low at a P/E of 3.7x. That implies an earnings yield of about 27% on reported profits.
- Profit growth has sped up: 37% TTM, against 17% over 3 years and 13% over 10 years. This suggests operating leverage to commodity prices and cost savings.
- The company has reduced debt, which lowers balance-sheet risk. It also supports the 150% dividend payout without extra leverage.
- The stock has moved strongly: 64% over 1 year and a 52% CAGR over 3 years, far ahead of its 15% CAGR over 10 years.
- The company is expected to report a good quarter, which could extend the 37% TTM profit growth in the near term.
- Revenue is shrinking: sales CAGR is -19% over 3 years, -2.28% over 5 years and only 2% over 10 years. Profit growth has come from margins and commodity cycles rather than volume.
- Earnings quality is a concern. Other income of Rs.14,343 Cr is about half of the roughly Rs.28,000 Cr profit implied by a P/E of 3.7x on a Rs.1,04,290 Cr market cap. The low P/E may therefore overstate core earning power.
- The company may be capitalising interest cost. That would push expenses off the income statement and inflate reported profits and ROE, including last year's 38%.
- Contingent liabilities of Rs.31,673 Cr equal about 30% of the market cap, which is a large off-balance-sheet exposure.
- A 150% dividend payout means the company pays out more than it earns. This may not last if profits fall or if other income of Rs.14,343 Cr does not recur, so the 12.71% yield could shrink.
- Promoter holding fell by 1.66% last quarter, which may reflect funding needs at the parent level.
- Earnings depend on commodity cycles. Profit CAGR ranges from 8% over 5 years to 37% TTM, and 5-year stock CAGR is 21% against 64% over 1 year, so recent returns may reflect a cyclical high.
- A P/B of 2.11x alongside a P/E of 3.7x suggests the market is discounting the durability of current earnings.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- 54.72% promoter stake re-encumbered Sep 19
Vedanta Resources placed an encumbrance on 54.72% of Vedanta Ltd shares through trustee GLAS Agency to secure a $400M bond tap. This came right after the earlier encumbrance was released on Sep 17. The stock fell 2.19% to ₹261.75 on Sep 21 as investors worried about the parent's debt structure.
- SC revives SEBI buyback fraud case Sep 9
The Supreme Court partly allowed SEBI's appeal against SAT's October 2023 order and sent the fraud question on the 2014 ₹5,725 cr Cairn India buyback back to SAT. Only 28.59% (₹1,225.45 cr) of that buyback was completed. SEBI's original penalty was ₹5.25 cr on the company and ₹15 lakh each on three individuals.
- Macro and commodity sell-off Sep 15
VEDL fell 3% in a third straight down session for metals, with the Nifty Metal index down 2.27% to 12,715.55. Pressure came from weaker aluminium, zinc and copper prices, Brent at $108.36, the US 10-year yield above 5% and the rupee near ₹95–96/$. The market also expects a 25 bp RBI rate hike to 5.50% at the Oct 5–7 MPC meeting.
- Hormuz closure hits copper Oct 3
Copper International sales fell 64% YoY in H1FY27 after the Strait of Hormuz closure disrupted the Fujairah rod business. Separately, Zinc International mined metal fell 14% YoY in Q1 as Black Mountain's Deep mine nears the end of its life.
- Bearish calls and passive outflows Sep 21
Citi keeps a 'Sell' rating on VEDL with a ₹235 target, below the current ~₹262. The stock's exclusion from the MSCI Global Standard Index, effective June 22, 2026, could keep passive outflows going.
- Niyamgiri tribal opposition renewed Sep 26
The Dongria Kondh community has vowed to resist any revived bauxite mining in Niyamgiri. All 12 gram sabhas rejected mining there in July–August 2013 following a Supreme Court directive. This adds ESG and execution risk to the group's Odisha expansion plans.
- Strong Q1 FY27 earnings Sep 8
Revenue rose 53.6% YoY to ₹24,205 cr. Net profit rose 71.8% to ₹5,473 cr per ET, though another report cites ₹5,294 cr. EBITDA margin widened to 35.1% from 30.7% QoQ, and net debt fell ₹2,223 cr in the quarter.
- Parent refinancing cuts borrowing costs Sep 8
Vedanta Resources raised a $400M tap, taking total bond fundraising to $2.15B at coupons of 7–7.75%. These replace debt that cost 9.20–9.50%. Full repayment of $1.1B in bonds also released the earlier 54.72% encumbrance on Sep 17.
- Credit rating upgraded to AA+ Sep 15
ICRA and CRISIL upgraded Vedanta to AA+/Stable from AA/Stable in July 2026. That supports its target of borrowing below 8.5% on new NCDs.
- Record H1 zinc and FACOR output Oct 3
In H1FY27, Zinc India refined metal rose 6% YoY to 524 kt, FACOR ore hit a record 202 kt (+31%) and ports discharge rose 32% to 4,185 kt. Q1 mined metal was a record 268 kt, and zinc cost of production fell 16% YoY.
- Long-term zinc and silver growth roadmap Sep 8
At the July AGM, management laid out plans to nearly triple zinc and lead output to 3 mt by 2031 and double silver to 1,500 t. It also plans more critical-mineral exploration, including India's first portable 1,000 m drilling rig in Chhattisgarh.
- ₹3,500 cr NCD programme Sep 30
The Committee of Directors approved up to ₹3,500 cr of unsecured NCDs (₹1 lakh face value, BSE-listed) on Sep 18 and allotted ₹2,000 cr on Sep 30. This is routine refinancing, and the company reported no defaults.
- ₹1 trillion Odisha aluminium push Sep 26
Anil Agarwal asked Odisha to speed up plans for a 3 mtpa Dhenkanal smelter and a 6 mtpa Rayagada refinery, taking capacity to about 6 mtpa. The plans mainly concern the demerged Vedanta Aluminium, and their pace depends on land and clearances.
- Kotak 'Buy' on Vedanta Aluminium Sep 18
Kotak set a ₹540 target on demerged Vedanta Aluminium, implying 31% upside from ₹411.9, and expects an FCF yield of 12–13% in FY27–28. The read-through to residual VEDL is indirect.
- Vedanta Aluminium tech partnerships Sep 8
The demerged aluminium arm signed AI and digitalisation partnerships with OpenAI, Microsoft, SAP and others, which it says could unlock up to ₹2,100 cr in value.
- HZL electric truck deal Sep 10
Hindustan Zinc signed a six-year contract with MFL India on Sep 9 to deploy 30 electric trucks for concentrate transport from Rampura Agucha. The contract can be extended by two years.
- Group stocks mixed on volatility Sep 10
VEDL closed at ₹271.15 (-0.9%) and Hindustan Zinc at ₹596.50 (-1.4%) as crude topped $100 for the first time since May 25. Gains from the refinancing faded.
TL;DR: Vedanta's fundamentals look solid: Q1 FY27 revenue rose 53.6% with a 35.1% EBITDA margin, H1 zinc output is at record levels, net debt is falling, and the AA+ upgrade plus cheaper parent refinancing (7–7.75% vs 9.2–9.5%) improve the balance sheet. The stock still drifted from about ₹271 to ₹262 in September. Drivers were the re-encumbrance of 54.72% of promoter shares, the revived SEBI buyback fraud case, the Hormuz hit to copper, and macro stress from crude above $100, US yields above 5% and a weak rupee. The business trend is improving while sentiment is getting worse. Near-term direction likely depends on zinc and silver prices, the Oct 5–7 RBI decision, and any further moves to deleverage the parent.
Quarterly Results
| Particulars | 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
| Particulars | 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
| Particulars | 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
| Particulars | 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
| Particulars | 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% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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61 extracted metrics + investor summaries across FY10–FY27.
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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]
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