Vedanta Limited (NSE: VEDL) reported a record profit of $2.8 billion for the fiscal year ended March 31, 2026, a 22 percent increase year-over-year, as the company formally entered its planned demerger.
The results, announced May 10, reflect the company's best-ever financial performance, driven by a disciplined operational strategy. The company did not disclose a direct comparison to consensus estimates in its announcement.
For the full fiscal year, Vedanta’s revenue grew 15 percent to about $20 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 30 percent to a record $6.3 billion. The company's EBITDA margin expanded to approximately 40 percent. Fourth-quarter results were also strong, with profit of $1 billion, up nearly 90 percent year-over-year, on revenue of $5.6 billion.
Demerger Unlocks New Structure
A key development was the activation of the company's demerger on May 1, 2026. The move creates five separate, publicly-listed companies designed to unlock value and attract distinct investor bases:
- Vedanta Aluminium
- Vedanta Oil & Gas
- Vedanta Power
- Vedanta Iron & Steel
- Vedanta Ltd. (housing Hindustan Zinc, Zinc International, and critical minerals)
The restructuring and strong earnings have improved the company's financial health, with its Net Debt-to-EBITDA ratio falling to 0.95x. This prompted credit rating agency Fitch to upgrade Vedanta Resources to 'BB-', while domestic agencies CRISIL and ICRA reaffirmed their 'AA' ratings on Vedanta Limited.
The strong performance and strategic moves translated into a total shareholder return of nearly 50 percent in fiscal 2026, outperforming the Nifty Metal Index by more than two times. Investors will now watch how the newly independent entities perform and create value as separate, focused businesses in the coming quarters.
This article is for informational purposes only and does not constitute investment advice.
