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Vedanta Limited
(VEDL)
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Rating:67Neutral
Price Target:
₹287.00
▼(-0.03% Downside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by solid cash-flow strength but constrained by leverage and the sharp FY2026 revenue drop. Valuation is a major positive (low P/E and ~4.8% yield). Technicals are mixed-to-weak short-to-intermediate term (below key DMAs), while the earnings call supported the outlook with deleveraging progress and operational momentum despite one-time charges and execution risks.
Positive Factors
Strong and improving cash generation
Consistent operating cash flow and positive free cash flow provide internal funding for debt repayment, maintenance investment and growth projects. This strengthens resilience through commodity cycles, although cash conversion has not been uniformly high.
Negative Factors
Historically elevated leverage
Although recent deleveraging is encouraging, the historical capital structure remains highly leveraged for a cyclical materials business. High fixed obligations can restrict investment flexibility and amplify downside when commodity prices or volumes weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong and improving cash generation
Consistent operating cash flow and positive free cash flow provide internal funding for debt repayment, maintenance investment and growth projects. This strengthens resilience through commodity cycles, although cash conversion has not been uniformly high.
Read all positive factors
Vedanta Limited (VEDL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.06T
Dividend Yield4.77%
Average Volume (3M)823.97K
Price to Earnings (P/E)5.4
Beta (1Y)1.15
Revenue Growth-27.72%
EPS Growth34.66%
CountryIN
Employees16,090
SectorGeneral
Sector StrengthN/A
IndustryIndustrial Materials
Share Statistics
EPS (TTM)50.39
Shares Outstanding3,910,388,000
10 Day Avg. Volume799,510
30 Day Avg. Volume823,974
Financial Highlights & Ratios
PEG Ratio1.02
Price to Book (P/B)6.26
Price to Sales (P/S)3.26
P/FCF Ratio16.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹312.00Price Target Upside8.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)29.69
Revenue Forecast (FY)₹928.83B
Vedanta Limited Business Overview & Revenue Model
Company Description
Vedanta Limited is an extensive Indian natural resources conglomerate involved in the entire lifecycle from discovery and extraction to the processing and global sale of a diverse array of commodities. These include crude oil and natural gas, alon...
How the Company Makes Money
Vedanta primarily makes money by selling commodities and commodity-linked products produced from its owned and operated resource and processing assets. Its key revenue streams typically include: (1) Base and precious metals: sales of refined zinc,...
Vedanta Limited Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The earnings call highlighted multiple record performances across key businesses (notably Aluminum and Vedanta consolidated results), strong operational progress, rating upgrades and meaningful deleveraging and cash accumulation at the group level. These positives were partially offset by a few one‑time exceptional charges (Oil & Gas, Power), localized operational disruptions and some project/production timing risks. On balance, the call conveyed strong momentum in earnings, cash generation and balance‑sheet improvement while acknowledging manageable execution and one‑time headwinds.Positive Updates
Vedanta Limited — Strong Overall Financial Performance
Continued businesses delivered EBITDA of INR 8,459 crores and PAT of INR 5,294 crores in Q1; consolidated Vedanta revenue up 51% Y-o-Y to ~INR 23,456 crores; EBITDA nearly doubled, up 98% Y-o-Y to ~INR 8,469 crores with a 57% margin; net debt/EBITDA reduced to 0.3x and cash balance strong at ~INR 19,922 crores; CRISIL and ICRA upgraded to AA+ (stable).
Negative Updates
One‑time Exceptional Charges Impacting PAT (Oil & Gas and Power)
Oil & Gas reported exceptional costs net of tax of INR 345 crores (provision for impairment / one-off), turning PAT from continuing operations to negative INR 151 crores; Vedanta Oil & Gas reported a one‑time discontinued operations profit that offset some effects but underlying continuing PAT was negative. Vedanta Power reported a one‑time exceptional item of INR 487 crores which pressured PAT (PAT before exceptional was negative INR 59 crores).
Read all updates
Q1-2027 Updates
Positive
Negative
Vedanta Limited — Strong Overall Financial Performance
Continued businesses delivered EBITDA of INR 8,459 crores and PAT of INR 5,294 crores in Q1; consolidated Vedanta revenue up 51% Y-o-Y to ~INR 23,456 crores; EBITDA nearly doubled, up 98% Y-o-Y to ~INR 8,469 crores with a 57% margin; net debt/EBITDA reduced to 0.3x and cash balance strong at ~INR 19,922 crores; CRISIL and ICRA upgraded to AA+ (stable).
Read all positive updates
Company Guidance
Management gave multi‑business guidance focused on cost control, volume delivery and project execution: Vedanta Aluminum reiterated FY27 hot‑metal cost guidance of $1,650–$1,700/t (Q1 hot‑metal ~$1,698/t), reported Q1 revenue INR21,158 crore and EBITDA INR10,499 crore (EBITDA/t $1,804) with 28% of volumes hedged at ~$3,062/t and warned Q2 costs may be marginally higher for planned shutdowns; Oil & Gas expects FY27 operating costs to be in line with FY26 (Q1 unit opex $17.4/bbl) with Q1 gross operated production 77,700 boe/d (WI 51,100 bopd); Vedanta Power targets 4.8 GW by end‑FY27 and ~7.2 GW incremental from FY28, has ~74% volumes under medium/long‑term PPAs and 85% coal linkage (Q1 sales 5,224 MUs, Q1 EBITDA INR291 crore) and expects Sakti unit ramp‑ups over the next 2–4 quarters; Iron & Steel expects Bokaro expansion by year‑end (Q1 iron ore 2.6 Mt, steel 582 kt, Q1 EBITDA INR515 crore, net debt/EBITDA 1.3x); group FY27 CapEx is ~INR20,000 crore, cash buffers are strong (Vedanta cash ~INR19,922 crore; VAML cash ~INR6,000 crore; Vedanta Power ~INR1,130 crore), leverage targets aim for Vedanta India net‑debt/EBITDA ~0.7 and the demerged group is targeting $5 billion EBITDA by FY30, with dividend policy left to individual boards but management modeling a 3–5% yield on market caps.Vedanta Limited Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
54
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.12T | 784.37B | 1.51T | 1.42T | 1.46T | 1.32T |
| Gross Profit | 540.99B | 383.04B | 752.54B | 701.62B | 669.65B | 719.34B |
| EBITDA | 335.63B | 247.53B | 423.11B | 356.27B | 351.66B | 451.42B |
| Net Income | 196.79B | 173.91B | 149.88B | 42.39B | 105.74B | 188.02B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 2.33T | 2.03T | 1.91T | 1.95T | 1.98T |
| Cash, Cash Equivalents and Short-Term Investments | 158.76B | 160.67B | 210.54B | 174.23B | 185.15B | 324.95B |
| Total Debt | 0.00 | 329.47B | 751.86B | 727.59B | 666.28B | 535.83B |
| Total Liabilities | -685.77B | 1.65T | 1.50T | 1.49T | 1.46T | 1.16T |
| Stockholders Equity | 685.77B | 408.31B | 412.12B | 307.22B | 394.23B | 653.83B |
Cash Flow | ||||||
| Free Cash Flow | 59.71B | 156.87B | 225.57B | 189.02B | 192.78B | 243.33B |
| Operating Cash Flow | 162.26B | 365.63B | 395.62B | 356.54B | 330.65B | 349.63B |
| Investing Cash Flow | -104.99B | -264.86B | -191.90B | -136.86B | -6.93B | -22.53B |
| Financing Cash Flow | -50.94B | -84.66B | -192.23B | -260.92B | -341.42B | -289.03B |
Vedanta Limited Technical Analysis
Negative
287.10
Price Trends
271.05
Negative
289.37
Negative
263.04
Positive
Market Momentum
-0.22
Positive
44.88
Neutral
9.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VEDL, the sentiment is Negative. The current price of 287.1 is above the 20-day moving average (MA) of 273.69, above the 50-day MA of 271.05, and above the 200-day MA of 263.04, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 44.88 is Neutral, neither overbought nor oversold. The STOCH value of 9.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VEDL.
Vedanta Limited Risk Analysis
Vedanta Limited disclosed 59 risk factors in its most recent earnings report. Vedanta Limited reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vedanta Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ₹691.49B | 10.17 | ― | 3.13% | 9.02% | 17.83% | |
78 Outperform | ₹2.54T | 14.88 | ― | 1.86% | 38.83% | 66.64% | |
75 Outperform | ₹744.23B | 9.98 | ― | 1.19% | 27.34% | 14.07% | |
67 Neutral | ₹1.06T | 5.40 | ― | 4.77% | -27.72% | 34.66% | |
66 Neutral | ₹2.28T | 13.69 | ― | 0.50% | 20.28% | -3.12% | |
56 Neutral | ₹1.19T | 43.62 | ― | 0.18% | 16.45% | -8.77% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:VEDL
Vedanta Limited
267.95
107.43
66.93%
IN:HINDALCO
Hindalco Industries Limited
1,006.85
272.18
37.05%
IN:HINDZINC
Hindustan Zinc Limited
589.45
161.47
37.73%
IN:JINDALSTEL
Jindal Steel Limited
1,145.50
105.92
10.19%
IN:NATIONALUM
National Aluminium Co. Ltd.
367.00
166.25
82.81%
IN:NMDC
NMDC Limited
84.00
11.69
16.16%
Vedanta Limited Corporate Events
Vedanta Publishes Q1 FY27 Earnings Call Transcript for Investor Access
Aug 4, 2026
Vedanta Limited has notified the stock exchanges that the transcript of its earnings conference call for the unaudited consolidated and standalone financial results for the quarter ended June 30, 2026 is now accessible on the company’s websi...
Vedanta strengthens board and executive leadership with key one-year reappointments
Jul 30, 2026
Vedanta Limited’s board has moved to reinforce its leadership bench by renewing key director appointments in conjunction with the release of its first-quarter results for the fiscal year ending June 30, 2026. The company continues to draw on...
Vedanta to Spin Off Real Estate Assets into New Platform to Unlock Value
Jul 30, 2026
Vedanta Limited’s board has approved a scheme to demerge its real estate business into a newly created Vedanta Property Platforms Limited, transferring all related assets and liabilities on a going-concern basis. The move, which currently re...
Vedanta to Demerge and Consolidate Real Estate Business into New Platform
Jul 30, 2026
Vedanta Limited’s board has approved a Scheme of Arrangement to demerge its real estate business into a separate entity, Vedanta Property Platforms Limited, on a going concern basis. The move, subject to regulatory and statutory approvals, c...
Vedanta to Spin Off Real Estate Arm into Dedicated Platform
Jul 30, 2026
Vedanta Limited’s board has approved a scheme of arrangement to demerge its real estate business into a separate entity, Vedanta Property Platforms Limited, on a going-concern basis. The move aims to unlock significant value from the company...
Vedanta to Spin Off Real Estate Business into Dedicated Platform
Jul 30, 2026
Vedanta Limited’s board has approved a scheme to demerge its real estate business into a new entity, Vedanta Property Platforms Limited, in a move to unlock value from a portfolio that has historically been treated as non-core. The demerged ...
Vedanta Discloses Independent CRISIL ESG Rating of 59 in Adequate Category
Jul 30, 2026
Vedanta Limited has disclosed that CRISIL ESG Ratings Analytics, a SEBI-registered ESG rating provider and subsidiary of CRISIL Ratings, has independently assigned the company an ESG score of 59, placing it in the Adequate category. Vedanta clari...
Vedanta Resources Clears Bonds, Lifts Encumbrances on Vedanta Limited Shares
Jul 21, 2026
Vedanta Resources Limited has informed Indian stock exchanges that it has fully repaid and settled a series of U.S. dollar-denominated guaranteed senior bonds issued by its subsidiary Vedanta Resources Finance II plc, leading to the release of all...
Vedanta schedules 61st virtual AGM, details e-voting and compliance steps
Jun 21, 2026
Vedanta Limited has notified stock exchanges that its 61st Annual General Meeting will be held on July 14, 2026, at 3:00 p.m. IST through video conferencing and other audio-visual means, with remote e-voting and book closure arrangements in place....
Vedanta Oil and Gas to Host Sell-Side Analyst Meet in Mumbai
Jun 21, 2026
Vedanta Oil and Gas Limited has announced it will host a physical group meeting in Mumbai on June 24, 2026, as part of a sell-side analyst engagement event. The company has made its latest analyst presentations available on its website and noted t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.