Vedanta share price falls over 3%; top recent developments you need to know

Vedanta Ltd chairman Anil Agarwal has unveiled a transformation roadmap, positioning the company as a global leader in transition metals, critical minerals, energy, and technology under its next growth phase, dubbed 'Vedanta 2.0'.

In his address to stakeholders in the group's annual report, Agarwal said the company is at an inflection point, supported by a record financial year, strong cost leadership, and plans to unlock value through its ongoing demerger exercise, which is nearing completion.

The chairman also underscored the importance of the group's strategic realignment, focus on vertical integration, and growing role in India's infrastructure buildout and energy transition.

"FY 2024-25 stands out as a year of strong performance for Vedanta. We delivered our highest-ever revenue of ₹1,50,725 crore, while our EBITDA jumped 19% to ₹43,541 crore, delivering industry-leading margins of 34% – all achieved in a challenging environment," Agarwal said in his letter to stakeholders.

Also highlighting the importance of the company's focus on driving operational excellence across the group, Agarwal said, "Our aluminium and zinc operations maintained their industry-leading cost positions, ranking in the top quartile and decile, respectively, of the global cost curve. Zinc International, Iron Ore, and Steel businesses also delivered robust improvements, reinforcing Vedanta's leadership across multiple sectors."

Vedanta: Corporate actions in FY25

Vedanta undertook several significant corporate actions in FY25 to strengthen its cash reserves. This includes ₹8,500 crore raised through a qualified institutional placement and an offer for sale (OFS) at Hindustan Zinc, raising an additional ₹3,134 crore, which allowed it at one point during the year to sit on a cash war chest of ₹33,000 crore.

Vedanta: Deleveraging targets

Agarwal highlighted that the group's committed deleveraging targets – both at the Vedanta Limited level and its parent Vedanta Resources – have been met ahead of the targeted timeline.

"At Vedanta Resources Limited (VRL), we deleveraged our balance sheet by $0.7 billion this year, bringing the total debt reduction to $4 billion over the last three years, surpassing our earlier stated targets. ICRA and CRISIL upgraded Vedanta's long-term rating from 'AA-' to 'AA'...watch with developing implications, and S&P Global raised VRL's rating by three notches to 'B+' with a stable outlook," the chairman said.

Vedanta: Future Plans

Sharing his views on the company's future trajectory, Agarwal said, "For Vedanta, this is the right moment to transform itself into a natural resources, energy and technology company. Vedanta 2.0 will have a key role in each of the most crucial levers of the economy."

Speaking about the role they play in supporting the growth of the Indian economy, he said, "Our diverse portfolio of 15 major commodities, oil & gas, and renewable energy is not only inextricably linked to the growth and development of the Indian economy but also intricately tied to the global goal to embrace a low carbon future."

The company's ongoing demerger exercise, which is nearing completion and is widely expected to unlock shareholder value, also found mention in the Chairman's letter. "We are in the process of demerging our business verticals to create a pure-play model, which is nimble and fine-tuned to even faster growth and unlocking of massive value."

Agarwal highlighted the timely completion of all capex projects, continued deleveraging, interest cost reduction, and successful completion of the demerger scheme as the priorities for FY26.

Vedanta announces 1st interim dividend for FY26

On Wednesday, Vedanta said its board has approved the first interim dividend of ₹7 per equity share for the financial year 2025-26, amounting to nearly ₹2,737 crore.