Vedanta demerger: How five new companies stack up against peers? Decoded

Vedanta's demerger is expected to improve transparency, enable focused capital allocation, and unlock value by allowing each business to be independently valued

Vedanta’s demerger became effective on May 1, 2026, splitting the conglomerate into five separate entities. For every one equity share of Vedanta Limited held as on the record date, shareholders will receive one equity share each in Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Limited — to be renamed Vedanta Power, Malco Energy (MEL) — to be renamed Vedanta Oil and Gas, and Vedanta Iron and Steel Limited (VISL). Vedanta's shareholding in Bharat Aluminium Company Limited (Balco) will also be transferred to VAML as part of the reorganisation.

 

This move is expected to improve transparency, enable focused capital allocation, and unlock value by allowing each business to be independently valued, according to Shrikant Chouhan, head of equity research at Kotak Securities. 

 

A glance at Vedanta’s five businesses and peer comparison

Vedanta / Hindustan Zinc (HZL)

Hindustan Zinc (HZL) is the anchor of the Vedanta portfolio and is the world’s largest integrated zinc producer, with approximately 74 per cent of India’s primary zinc market as of FY26, and among the top 10 silver producers globally, according to Vedanta’s investor presentation.

 

It operates six mines across Rajasthan, including Rampura Agucha — the world’s largest underground zinc mine with ore production of 5.08 MTPA — with a combined zinc smelting capacity of 934 KTPA, lead smelting capacity of 210 KTPA, and silver refining capacity of 800 TPA.

 

HZL is targeting to double its smelting capacity to 2 MTPA, with Ebitda projected to grow from $2.7 billion in FY27 to $3.4 billion in FY30 under the assumption price, and $4.2 billion at spot prices.

 

Hindustan Zinc has no direct national peers. In H1 FY26, it reported a net profit of ₹4,883 crore and revenue of ₹15,873 crore. In comparison, Vedanta’s consolidated revenue from operations stood at ₹76,652 crore, and net profit stood at ₹3,064 crore.

Vedanta Aluminium Metal Limited (VAML)

VAML houses Vedanta’s aluminium operations — VAL Jharsuguda (2 MTPA), VAL LNJ Refinery (5 MTPA alumina), and Balco (51 per cent, targeting 1 MTPA post expansion) — making it the third-largest aluminium producer globally, excluding China.

 

As part of the reorganisation, Vedanta’s shareholding in Balco will be transferred to VAML through compulsorily convertible debentures at fair market value.

 

VAML’s peers at the national level include Hindalco Industries, the metals flagship company of the Aditya Birla Group, and National Aluminium Company, a Navratna PSU under the  Ministry of Mines.

 

In H1 FY26, Hindalco reported a net profit of ₹8,745 crore and revenue of ₹1,30,290 crore. Similarly, Nalco reported a net profit of ₹2,479.42 crore and revenue of ₹8,099.28 crore during the same period. In comparison, Vedanta’s aluminium segment reported revenue of ₹30,227 crore.

Vedanta Oil and Gas Limited (MEL / Cairn)

MEL houses Cairn Oil and Gas, India’s largest private sector crude oil producer, according to Vedanta’s investor presentation. Post-demerger, MEL will be renamed Vedanta Oil and Gas Limited, subject to Registrar of Companies approval.

 

According to Kranthi Bathini, equity strategist, WealthMills Securities, Reliance Industries (RIL) will be somewhat of a competitor to Vedanta Oil & Gas as it has varied businesses, not just oil exploration. But in an apple-to-apple comparison, Oil and Natural Gas Corporation (ONGC) and Oil India would be peers to Vedanta Oil &  Gas as they have matching businesses.

 

In H1 FY26, RIL’s net profit stood at ₹42,783 crore, and its revenue stood at ₹5,58,964 crore. ONGC’s net profit stood at ₹24,168.81 crore, and its revenue came in at ₹3,21,019.2 crore. Meanwhile, Oil India’s net profit stood at ₹3,690.32 crore and revenue at ₹16,322.77 crore. Vedanta’s oil and gas segment reported revenue of ₹4,633 crore. 

Vedanta Power Limited (TSPL)

The power business comprises TSPL (1,980 MW), JSG IPP (600 MW), Athena VLCTPP (1,200 MW post expansion), and Meenakshi Power (1,000 MW), making it India’s fifth-largest private sector thermal power generator. Post-demerger, TSPL will be renamed Vedanta Power, subject to regulatory approval.

 

Key competitors include Tata Power, Adani Power, NHPC Limited, and JSW Energy.

 

In H1 FY26, Tata Power reported a net profit of ₹2,507.71 crore and revenue of ₹33,579.98 crore. Adani Power reported a net profit of ₹6,759.49 crore and revenue of ₹26,674.53 crore. NHPC and JSW Energy reported net profits of ₹2,350.44 crore and ₹1,660.13 crore, respectively, while their revenues stood at ₹6,579.03 crore and ₹10,320.79 crore. In comparison, Vedanta’s power segment clocked a revenue of ₹4,268 crore in the same period.

Vedanta Iron and Steel Limited (VISL)

VISL houses Sesa Iron Ore, ESL Steel (targeting 3.5 MTPA post expansion), and WCL Liberia, positioning it as one of India’s largest private sector iron ore exporters.

 

In H1 FY26, Vedanta’s iron ore segment reported revenue of ₹2,783 crore. In comparison, NMDC Limited and Godawari Power and Ispat Limited reported revenues of ₹13,116.97 crore and ₹2,630.93 crore, respectively. Their net profits stood at ₹3,650.11 crore and ₹378.06 crore.

 

Among steel players, JSW Steel and Tata Steel are key competitors, with H1 FY26 revenues of ₹88,299 crore and ₹1,11,867.41 crore, respectively.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.