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Informist, Thursday, Jan. 29, 2026

By Astha Oriel and Shakshi Jain

MUMBAI – Mining major Vedanta Ltd. Thursday said the demerger of the company into four different entities will be completed by March. The demerged entities are likely to be listed on the bourses by mid to end May, the management of the company said in a post-earnings conference call.

The company has got approval from the National Company Law Tribunal to demerge Vedanta into four entities -- Vedanta Aluminium Metal Ltd., Talwandi Sabo Power Ltd., Vedanta Steel and Iron Ltd., and Malco Energy Ltd. Vedanta will continue to have controlling stake in the base metal business as well as Hindustan Zinc Ltd.

The management said the restructuring gives Vedanta an opportunity from taxation point of view. Post the demerger, the company's intent is to make oil and gas business debt-free and the iron and steel business almost debt free.

Vedanta will be selling 1.1% stake in Hindustan Zinc through and offer for sale to raise INR 30 billion, the management said. The company currently owns 61.84% stake in Hindustan Zinc. The entire amount of INR 30 billion will be used for demerger, according to the company.

On Thursday, the company reported a consolidated net profit of INR 57.10 billion for the December quarter, up 61% on year but below analysts' estimate of INR 58.54 billion. A one-time cost of INR 1.32 billion weighed on Vedanta's net profit. The company's total revenue for the quarter was INR 458.99 billion, up 19% on year. 

In the fourth quarter, the company's inter-company loan repayment stands at $150 million along with interest payment of $125 million, according to the management.

"We have, in the past, been committing about 6% of dividend yield, and what we have paid in the current fiscal is almost 3%. So, a payment of a dividend in the fourth quarter is likely, subject to board approvals. In that case, the entire dues, almost $275 million in the fourth quarter, will be addressed through dividend," the management said. 

For the next financial year, Vedanta Resources Ltd., which is the parent company of Vedanta, has a debt repayment of $450 million, inter-company loan repayment of $200 million, and interest payment of $450 million.

For its overall business, the company said it is on track to achieve the capital expenditure guidance of $1.7 billion for the current fiscal year. In the case of aluminium business, the company said it is on track to achieve FY26 alumina production guidance of 3 million tonnes. The company expects to commission Sijimali bauxite mine in Odisha in FY27. The company expects a $50 to $60 reduction in the price of alumina in Apr-Jun.

The company expects its aluminium production capacity to reach 2.8 million tonnes after the capacity ramp-up at subsidiary Bharat Aluminium Co. Ltd., the management said. The company said that it is working on a set of debottlenecking exercises to further increase the capacity to 3 million tonnes over the next 18 months.

In the case of its coal business, the company expects to commission Kuraloi coal block in the March quarter of FY26 as per its earlier guidance. Thursday, shares of Vedanta closed at INR 766.35 on the National Stock Exchange, up 4% from the previous session.  End

US$1 = INR 91.95

Edited by Ashish Shirke

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