Vedanta Group under ED scanner as agency conducts FEMA searches ahead of demerger listing

Vedanta ED probe: The Enforcement Directorate (ED) on Tuesday conducted searches at offices of Vedanta Ltd in Mumbai and Delhi as part of an ongoing investigation under the Foreign Exchange Management Act (FEMA), according to ANI, citing officials.

The searches are linked to allegations involving dividend and royalty payments made by the company to its holding and group entities. The agency is examining whether these transactions were carried out through any improper or irregular means.

Officials said the action is part of a broader FEMA violation probe. Further details of the investigation were not immediately available.

Earlier in the day, sources had confirmed that the ED was conducting search operations against the Vedanta Group. The development comes ahead of the proposed demerger and listing of the group's businesses.

Vedanta says it is cooperating with authorities

Responding to the searches, a Vedanta spokesperson said the company is fully cooperating with the authorities.

"We are extending full cooperation to the authorities and are providing all information sought. The company remains committed to compliance with all applicable laws and regulations. As the matter is currently under regulatory process, we are unable to comment further at this stage," the spokesperson said.

An official statement from the Enforcement Directorate is awaited. The searches were underway at the time of reporting.

When could Vedanta's demerged entities be listed?

Vedanta's four demerged companies could be listed on the NSE and BSE by mid-June, subject to regulatory approvals and stock exchange clearances.

Under the demerger process, shares of the newly created entities are first credited to eligible shareholders' demat accounts. In several past demerger cases, trading commenced within four to eight weeks after the allotment of shares.

Vedanta reports record Q4 earnings

Vedanta reported its highest-ever quarterly earnings for the March quarter of FY26, supported by strong operational performance and favourable commodity prices.

The company posted a profit after tax of Rs 9,352 crore, up 89 per cent year-on-year, while revenue from operations rose 29 per cent to Rs 51,524 crore.

EBITDA increased 59 per cent from a year ago to Rs 18,447 crore, with the EBITDA margin expanding to 44 per cent.

Vedanta attributed the performance to higher production volumes, favourable commodity prices, improved premiums and foreign exchange gains. Return on capital employed improved to nearly 32 per cent, while the net debt-to-EBITDA ratio strengthened to 0.95 times, its best level in 14 quarters.

Four new companies to emerge from demerger

As part of its restructuring exercise, Vedanta Limited is demerging its businesses into five separate listed entities.

The four newly created companies are:

• Vedanta Aluminium Metal Ltd.
• Vedanta Power Ltd.
• Vedanta Oil and Gas Ltd.
• Vedanta Iron and Steel Ltd.

The existing Vedanta Limited will continue to house businesses including its stake in Hindustan Zinc Limited, international zinc operations, as well as its copper and ferro chrome assets.