Vedanta soars 17% in 3 days, hits new high post demerger; more upside left?

At 11:32 AM on Wednesday, Vedanta quoted 3 per cent higher at ₹312.65 on the BSE, as compared to a 0.26 per cent rise in the BSE Sensex.

Vedanta share price

Shares of Vedanta rallied 4.2 per cent to hit a new high of ₹316.90 (adjusted to demerger) on the BSE in Wednesday’s intra-day trade amid heavy volumes.  

The stock price of the metal company was quoting higher for the third straight day, surging 17 per cent during the period. It has bounced back 18 per cent from its post demerger low of ₹268.70 touched on April 30, 2026. 

At 11:32 AM on Wednesday, Vedanta stock quoted 3 per cent higher at ₹312.65 on the BSE, as compared to 0.26 per cent rise in the BSE Sensex. A combined 48.45 million equity shares changed hands on the NSE and BSE.  CATCH STOCK MARKET UPDATES TODAY LIVE

 

Vedanta's demerger

Vedanta’s much-awaited demerger (announced in September 2023) came into effect from May 1, 2026. On April 30, 2026, Vedanta shares turned ex-date for demerger. 

The demerger was resulted in the creation and eventual listing of five separate entities on the stock exchanges i.e. Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas, Vedanta Iron & Steel and Vedanta (Residual Entity). 

The demerger executed as a simple vertical split. For every 1 share of Vedanta Ltd held, shareholders will receive 1 share in each of the four newly listed entities. 

The residual Vedanta entity will remain listed and will house key businesses including Zinc India (Hindustan Zinc), Zinc International, Copper, and ferro chrome, among others. The remaining demerged entities are likely to be listed within 1-2 months following the record date.

Is there more upside left in Vedanta’s stock price?

 

Post adjustment of demerger, Vedanta’s stock price is expected to trade in the range of ~₹300-325 per share (vs. pre-demerger market price of ~₹720 per share), ICICI Securities had said. 

“This estimate is indicative, as we await exact allocation of net debt across the resulting entities. The residual Vedanta will derive the bulk of its value from its stake in Hindustan Zinc,” the brokerage firm said. 

Notably, among the demerged businesses, Vedanta Aluminium stands out as the most attractive entity, with an expected listing valuation of ₹400+ per share. This is supported by its strong contribution to group revenues and margins, along with favourable industry dynamics such as tight global supply, elevated aluminium prices, and ongoing capacity expansions driving volume growth, analysts at ICICI Securities said in the company update.  READ | Vedanta demerger: How the five-way split may solve debt concerns

Vedanta outlines mega expansion post demerger

Vedanta has outlined an aggressive, multi-sector expansion roadmap across aluminium, oil and gas, power, and steel businesses, as the group prepares to scale up operations following its demerger into independent verticals. 

In a letter to shareholders, chairman Anil Agarwal said Vedanta Aluminium is targeting a doubling of capacity to 6 million tonnes per annum, backed by deeper backward integration and structural cost advantages that position the business among the lowest-cost producers globally, the Business Standard reported. CLICK HERE FOR MORE DETAILS

Vedanta – Crisil Ratings rationale

Crisil Ratings has withdrawn its rating on the Non-Convertible Debentures of ₹6,089 crore. The withdrawal is due to the eventual transfer of these Non-Convertible Debentures to Vedanta Aluminium Metal Ltd (VAML; part of the Vedanta group), post-demerger of the Vedanta group. VAML will operate the aluminium business of the group post demerger. 

Meanwhile, Vedanta’s consolidated Ebitda improved substantially to ₹55,976 crore during fiscal 2026 (against ₹43,541 crore in the corresponding period last year), supported by favourable prices and cost reduction through various initiatives, especially in the aluminium and zinc businesses.  Ebitda is expected to further improve in fiscal 2027, driven by healthy metal prices, expected completion of ongoing capital expenditure (capex) for capacity increase and operating efficiency improvement, the rating agency said in its rationale. 

The domestic zinc, lead and silver businesses are supported by low cost of production, large reserves and continued resource addition. Increased mined metal capacity in domestic zinc, along with ramp-up of Gamsberg’s (South Africa) operations in zinc international, will support the scale-up in volume, it added.  ====================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.