Vedanta Limited (VEDL) AI Stock Analysis

• Market Cap: ₹2.64T
• Dividend Yield: 8.78%
• Average Volume (3M): 653.91K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.50
• Revenue Growth: 8.87%
• EPS Growth: 2.25%
• Country: IN
• Employees: 17,526
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 4.56
• Shares Outstanding: 3,910,388,000
• 10 Day Avg. Volume: 582,681
• 30 Day Avg. Volume: 653,909
• PEG Ratio: 0.05
• Price to Book (P/B): 4.30
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 7.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹568.00
• Price Target Upside: -7.73% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ₹782.00 ▲(27.03% Upside)

The score is driven primarily by strong financial performance (profitability and cash generation) tempered by leverage trends. Technicals support the uptrend, but overbought signals raise short-term risk. Valuation is supported by a high dividend yield, partly offset by a mid-to-higher P/E.

Positive Factors

Diversified commodity portfolio

Broad exposure across metals, oil & gas, steel and power provides structural revenue diversification and vertical integration benefits (captive power, smelting). This reduces single-commodity dependence and enables capturing by-product value, supporting stability across cycles.

Strong profitability and improving margins

Consistently improving gross and net margins and solid EBIT/EBITDA indicate durable operational efficiency and cost control. Sustainable margins enhance the firm's ability to fund capex, service debt, and support dividends even if commodity prices moderate over months.

Solid operational cash generation and rising FCF

Robust operating cash flow and growing free cash flow enhance financial flexibility, enabling sustained capital investment, debt repayment and shareholder returns. Strong cash conversion mitigates cyclical earnings swings and supports long-term strategic initiatives.

Negative Factors

Rising leverage and declining equity ratio

A declining equity ratio and rising leverage increase refinancing and interest-rate exposure, reducing financial flexibility. In commodity downturns this elevates solvency and liquidity risk and limits the company's ability to invest or cushion operating volatility over the medium term.

EPS growth lags revenue growth

Revenue expansion is not translating proportionally into EPS gains, suggesting margin pressure, higher finance costs, or dilution. Over time, muted EPS growth can constrain shareholder returns and signals the need for sustained margin improvements or capital structure optimization.

High sensitivity to commodity cycles and input costs

Dependence on volatile commodity prices, energy costs and regulatory terms creates structural earnings variability. This cyclical exposure necessitates conservative balance-sheet management and operational flexibility to protect margins and cash flow during prolonged commodity downturns.

Vedanta Limited Business Overview & Revenue Model

Company Description

Vedanta Limited operates as a diversified natural resources company in India. It explores for, develops, extracts, produces, processes, and sells oil and gas, zinc, lead, silver, copper, aluminum, iron ore, steel, pig iron, and metallurgical coke. The company also operates a thermal coal-based commercial power facility of 600 megawatts (MW) at Jharsuguda in the State of Odisha in eastern India; 2 units of 300 MW thermal coal based power plants at Korba; 1,980 MW thermal coal- based commercial power facilities; 274 MW of wind power plants; and a power plant situated at Mettur Dam in the state of Tamil Nadu in southern India. In addition, it manufactures and supplies billets, TMT bars, wire rods, and ductile iron pipes; mechanizes coal handling facilities and upgrades general cargo berth for handling coal at the outer harbor of Visakhapatnam Port on the east coast of India; and provides logistics and other allied services inter alia rendering stevedoring, and other allied services in ports and other allied sectors. Further, the company is involved in manufacturing glass substrates in South Korea and Taiwan. It also operates in Europe, China, the United States, Turkey, Mexico, Malaysia, South Africa, Namibia, Ireland, Australia, Liberia, and the United Arab Emirates. The company was formerly known as Sesa Sterlite Limited and changed its name to Vedanta Limited in March 2015. The company was founded in 1954 and is headquartered in Mumbai, India. Vedanta Limited operates as a subsidiary of Vedanta Resources Limited.

How the Company Makes Money

Vedanta Limited generates revenue through multiple key streams, primarily from the sale of minerals and metals extracted from its mining operations. The company produces zinc, lead, silver, copper, and aluminum, with a significant portion of its revenue coming from the sale of these products in domestic and international markets. Additionally, Vedanta has a robust oil and gas segment, contributing to its earnings through the exploration and production of hydrocarbons. The company's revenue model is supported by long-term contracts and strategic partnerships with various industrial consumers, which help stabilize its cash flows. Fluctuations in global commodity prices, operational efficiencies, and cost management strategies also play a critical role in determining the company's profitability.

Vedanta Limited Financial Statement Overview

Summary

Vedanta Limited demonstrates strong financial performance with robust revenue growth, profitability, and cash flow generation. However, increased leverage and fluctuating cash flow patterns require careful monitoring.

Income Statement

Vedanta Limited has shown strong revenue growth and profitability in recent years. The Gross Profit Margin has been robust with a slight upward trend, and Net Profit Margin has improved significantly, reflecting effective cost management. Revenue growth has been positive, and EBIT and EBITDA margins indicate strong operational performance.

Balance Sheet

The balance sheet reveals a stable financial position with a reasonable Debt-to-Equity Ratio reflecting manageable leverage. Although increasing, the company maintains a healthy Return on Equity, suggesting efficient use of shareholder funds. The Equity Ratio has been declining, indicating a higher reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis highlights strong operational cash flow generation relative to net income, indicating robust cash management. Free Cash Flow has grown consistently, supporting investment and debt servicing. However, fluctuations in investing and financing cash flows suggest variability in capital allocation strategies.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.54T	1.51T	1.42T	1.46T	1.32T	871.66B
Gross Profit	750.23B	752.54B	701.62B	669.65B	719.34B	471.31B
EBITDA	422.70B	423.11B	356.27B	351.66B	451.42B	274.07B
Net Income	145.67B	149.88B	42.39B	105.74B	188.02B	116.02B
Balance Sheet
Total Assets	0.00	2.03T	1.91T	1.95T	1.98T	1.86T
Cash, Cash Equivalents and Short-Term Investments	187.62B	210.54B	174.23B	185.15B	324.95B	330.31B
Total Debt	0.00	751.86B	727.59B	666.28B	535.83B	575.63B
Total Liabilities	-537.53B	1.50T	1.49T	1.46T	1.16T	1.04T
Stockholders Equity	537.53B	412.12B	307.22B	394.23B	653.83B	622.78B
Cash Flow
Free Cash Flow	0.00	225.57B	189.02B	192.78B	243.33B	170.94B
Operating Cash Flow	0.00	395.62B	356.54B	330.65B	349.63B	239.80B
Investing Cash Flow	0.00	-191.90B	-136.86B	-6.93B	-22.53B	-67.50B
Financing Cash Flow	0.00	-192.23B	-260.92B	-341.42B	-289.03B	-175.65B

Vedanta Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 615.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VEDL, the sentiment is Positive. The current price of 615.6 is below the 20-day moving average (MA) of 617.34, above the 50-day MA of 562.80, and above the 200-day MA of 465.77, indicating a bullish trend. The MACD of 30.28 indicates Negative momentum. The RSI at 82.25 is Negative, neither overbought nor oversold. The STOCH value of 95.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:VEDL.

Vedanta Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEDL	79 Outperform	₹2.64T	21.96	―	8.78%	8.87%	2.25%
HINDZINC	76 Outperform	₹2.77T	26.17	―	4.64%	8.90%	20.90%
HINDALCO	75 Outperform	₹2.15T	11.94	―	0.58%	13.19%	42.27%
TATASTEEL	71 Outperform	₹2.36T	34.68	―	2.11%	-0.42%	132.70%
JSWSTEEL	66 Neutral	₹2.89T	47.85	―	0.26%	2.14%	20.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JINDALSTEL	57 Neutral	₹1.06T	38.47	―	0.20%	-2.21%	-46.30%

Vedanta Limited Corporate Events

Vedanta Discloses Promoter Group Financing Pact Under SEBI Disclosure Norms

Vedanta Limited has disclosed that it received an intimation under Regulation 30A of the SEBI Listing Regulations from its promoter group entities—Vedanta Resources Limited, Twin Star Holdings Limited, Vedanta Holdings Mauritius II Limited and Welter Trading Limited—regarding a facility agreement dated 30 December 2025 to which Vedanta Limited itself is not a party. Under this agreement, Vedanta Resources Limited is the borrower and Twin Star Holdings Limited, a promoter group entity holding 40.02% of Vedanta Limited’s shares, and Vedanta Holdings Mauritius II Limited act as guarantors, with certain restrictions under the facility becoming effective from the first utilisation date. The disclosure underscores the ongoing financing activities at the promoter group level and is relevant for shareholders and creditors monitoring potential implications of promoter-level leverage and covenants on Vedanta Limited’s shareholding structure and governance, even though the company has clarified it is not directly bound by the facility agreement.

Vedanta Subsidiary Hindustan Zinc Faces Regulatory Penalty

Vedanta Limited has disclosed that its subsidiary, Hindustan Zinc Limited (HZL), received a penalty from the Ministry of Corporate Affairs, specifically by the Regional Director of the North Western Region in Ahmedabad, under regulatory provisions of SEBI Listing Regulations. This announcement reflects compliance and transparency while potentially impacting HZL’s operational costs and regulatory standing within the mining industry, presenting implications for stakeholders and market perception.

Vedanta Limited Secures NCLT Approval for Strategic Demerger

Vedanta Limited has received approval from the National Company Law Tribunal (NCLT) for its Scheme of Arrangement to demerge into four independent, pure-play companies. This strategic move aims to unlock long-term value for shareholders by creating focused entities with clear strategic mandates, enhancing accountability and transparency, and aligning with market opportunities.

Vedanta Limited Expands with Acquisition of Incab Industries

Vedanta Limited has received approval from the National Company Law Tribunal Kolkata for its acquisition of Incab Industries Limited, a company specializing in the manufacturing of power cables and industrial wires using copper and aluminum. This strategic acquisition is expected to enhance Vedanta’s operations in the downstream copper and aluminum sectors, providing vertical and downstream synergies, and supporting the company’s growth in infrastructure and transmission.

Vedanta Limited Releases Q2 and Half-Year Financial Results

Vedanta Limited has published its unaudited financial results for the second quarter and half-year ending September 30, 2025. The results were announced through newspaper advertisements in Financial Express and Loksatta, and are also available on the company’s website. This disclosure is part of the company’s compliance with SEBI regulations, highlighting its commitment to transparency and regular communication with stakeholders.

Vedanta Limited Announces Stock Option Vesting and Granting to Boost Employee Engagement

Vedanta Limited has announced the vesting and granting of stock options under its Employee Stock Option Scheme. The Nomination and Remuneration Committee approved the vesting of 46,91,300 options from the 2022 grants and the grant of 97,80,400 new stock options. These options are performance-based and aim to incentivize eligible employees, including key managerial personnel and senior management, aligning their interests with the company’s long-term goals. This move is expected to enhance employee engagement and retention, potentially impacting the company’s operational efficiency and market positioning positively.

Vedanta Limited Announces NCLT Directive on Subsidiary Restructuring

Vedanta Limited has announced an update regarding the Scheme of Arrangement involving its subsidiaries, including Talwandi Sabo Power Limited, Vedanta Aluminium Metal Limited, Malco Energy Limited, and Vedanta Iron and Steel Limited. The National Company Law Tribunal (NCLT) has directed the dispensation of the equity shareholders’ meeting for Talwandi Sabo Power Limited and mandated the convening of meetings for its secured and unsecured creditors within 90 days. This development is part of the ongoing restructuring efforts to streamline operations and improve financial stability, potentially impacting stakeholders by altering the company’s corporate structure and financial arrangements.