Brokerages bullish on Vedanta's prospects amid concerns over group's debt

Capex in aluminium and zinc should result in incremental cash flow of $1 billion-plus per annum once the plants ramp up fully, which could be in H2FY26

Mining conglomerate Vedanta Ltd (VEDL) has clarified the details of its complicated corporate reorganisation. The management shared its vision at a recent investor meeting. The group has also outlined its plans to deleverage debt even as it goes ahead with capital expenditure (capex) plans.

Parent Vedanta Resources (VRL) has managed to carry out a debt restructuring, raising bonds in January 2024. As a result, VRL’s net debt should reduce to $6.2 billion by the end of the current financial year (FY24) and according to management, debt should reduce to $3 billion by FY27. The restructure has pushed the average maturity