Vedanta Demerger Impact: Share price slips 2% as restructuring unfolds; here’s brokerages say on stock outlook

Vedanta Share Price Today: Shares of Vedanta Ltd fell 2.21 per cent to Rs 298.65 apiece on the NSE in Friday’s trade, as investors continued to assess the implications of its ongoing restructuring into five separately listed entities.

The stock movement came shortly after a special trading session held on April 30 for price discovery, ahead of the group’s formal demerger, which became effective from May 1. The restructuring will split Vedanta into sector-focused companies, each with independent strategy, capital allocation and growth plans.

What does the Five-way split aims

The demerger plan will separate Vedanta into standalone businesses across aluminium, oil & gas, power, iron & steel, and base metals. The objective is to create focused entities with clearer financial visibility and sharper operational execution.

Post restructuring, Vedanta Aluminium is targeting a capacity expansion to 6 million tonnes per annum. The oil & gas business plans to scale output to 300,000–500,000 barrels per day with a USD 5 billion investment programme. The power segment is aiming to expand capacity from 4.2 GW to a 12 GW pipeline, while iron & steel is targeting growth from 4 million tonnes to 10 million tonnes.

Anil Agarwal highlights record FY26 performance

Founder and chairman of Anil Agarwal said the company delivered its highest-ever financial performance in FY26, with consolidated profit after tax of Rs 25,096 crore on revenue of Rs 1,74,075 crore.

He noted that total shareholder returns stood at around 50 per cent, supported by a dividend payout of Rs 34 per share. The company also strengthened its balance sheet, improving net debt-to-EBITDA to 0.95x, providing greater financial flexibility ahead of the restructuring phase.
Agarwal said the demerger marks a shift toward building globally competitive, sector-specific companies with stronger strategic clarity and scalability.

Capex push and structural transformation

Vedanta invested about Rs 15,000 crore in growth capital expenditure during FY26 across key verticals including aluminium, zinc, oil & gas and emerging businesses. The group also plans to increase use of technology and artificial intelligence to improve efficiency and productivity across operations.

Broker views split on valuation and upside potential

Brokerage firm CLSA, which has a 12-month price target of Rs 835, highlighted Vedanta’s improving cost structure, capacity expansion plans and ongoing deleveraging as key drivers for potential re-rating. It also noted that the restructuring could improve transparency across business verticals, especially as inter-company transactions reduce and capital structures become more clearly defined.

CLSA said the move may enhance investor visibility into the financial performance of each standalone entity, helping markets better assess valuation on a segment-wise basis.

Separately, Emkay Global Financial Services said the restructuring could lead to upside through potential valuation re-rating, as pure-play companies in the metals and mining space typically command higher multiples compared to diversified conglomerates. It added that more focused management teams and improved capital allocation could further support long-term value creation.

Citi flags concentration and dividend concerns

Brokerage firm Citi, however, maintained a cautious stance, pointing out that more than 90 per cent of Vedanta Ltd’s EBITDA is now linked to zinc assets, particularly Hindustan Zinc Ltd and Zinc International, increasing dependence on zinc price cycles.

It also flagged uncertainty around dividend policy after restructuring, noting that earlier payout commitments may no longer apply. While upstreaming of dividends from Hindustan Zinc is expected to continue, Citi warned that ambiguity around cash usage could weigh on investor sentiment.

The firm also maintained a bearish outlook on zinc prices, suggesting that current valuations may already reflect near-term expectations.

Stock under pressure amid transition phase

Despite the long-term restructuring narrative, Vedanta shares remained under pressure in the near term as investors weighed execution risks, commodity price volatility and earnings concentration in zinc-linked businesses.

Market participants said the demerger could unlock value over time, but clarity on capital allocation, cash flows and commodity cycles will remain key drivers for the stock in the coming quarters.