Higher prices, demerger to boost margins, unlock value for Vedanta

Vedanta's stock rally is driven by a strong metal cycle, silver-led upside at Hindustan Zinc, aggressive capacity expansion and progress on its multi-entity demerger

Mining and metals conglomerate Vedanta has seen a surge in its share price on the back of multiple triggers. The demerger appears to be one track, a strong non-ferrous commodity cycle is boosting margins and silver bulls are interested in Hindustan Zinc.

 

Aluminium and zinc are up 7 per cent and 13 per cent, respectively, on a quarter-on-quarter basis for October to December 2025. Aluminium is expected to remain in deficit in 2026 as well, and supply constraints could sustain higher silver prices in 2026. The subsidiary, Hindustan Zinc, will benefit from rising silver prices (up 32 per cent quarter-on-quarter)