For over a year now, Vedanta’s much talked about demerger plan has kept Dalal Street buzzing. The question now is when is the demerger likely? Billionaire Anil Agarwal’s mining to metals giant has indicated that the long anticipated split of Vedanta into five separate entities is firmly on track and is potentially expected by September this year.
Vedanta demerger update
Vedanta’s demerger will carve out four new companies from the parent Vedanta Limited, which will continue to exist as the fifth entity. The newly formed include –
- Vedanta Aluminium Metal
- Vedanta Power
- Vedanta Oil & Gas
- Vedanta Iron and Steel Limited
Each of these will be listed on the stock exchanges. For every share held in Vedanta, eligible shareholders will receive one share in each of the four new companies. The record date to determine eligibility will be announced soon.
According to Vedanta CFO Ajay Goel, the company is “on track” to complete the process by the end of Q2 FY26, which means September 2025.
ALSO READVedanta Q4 Results: Profit skyrockets to Rs 4,961 cr, revenue up 13.93% on favorable market prices, higher premiums Vedanta Q4 results: 5 key highlights
Even as the company prepares for a major transformation, its numbers for the fourth quarter of FY25 are as follows-
- Vedanta posted its highest ever consolidated revenue of Rs 39,789 crore in Q4FY25
- Profit attributable to shareholders shot up by 154% YoY to Rs 3,483 crore, compared to Rs 1,549 crore in Q4FY24.
- Consolidated EBITDA rose 30% to Rs 11,618 crore, with the margin hitting a 12-quarter high.
- Pre-capex free cash flow stood at Rs 7,814 crore, while cash and cash equivalents jumped 34% year-on-year.
- Profit after tax came in at Rs 4,961 crore, up 2% from the previous quarter.
Vedanta: Retains ‘Buy’ with Rs 607 target
The brokerage firm Nuvama remains bullish on the company. In its latest report, Nuvama has maintained a ‘Buy’ rating on Vedanta, citing strong prospects in the aluminium business, steady debt reduction, and expected earnings growth over the next two years.
According to the brokerage report, net debt (excluding Hindustan Zinc and including buyers’ credit) peaked in Q3FY25 and has since declined by Rs 1,130 crore,
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