In a note to investors, the broker highlighted that Vedanta is nearing the final stage of obtaining statutory clearances for its planned demerger into five separate listed entities. The move is expected to unlock significant shareholder value by distinctly valuing its diversified asset base.
The brokerage also pointed to robust commodity prices, ongoing cost reduction efforts and volume growth as tailwinds for the company’s earnings. On the back of higher commodity price assumptions, it raised Vedanta’s EBITDA estimates for financial years 2027 and 2028, factoring in stronger profitability. The brokerage now forecasts Vedanta's EBITDA to grow at a compounded annual growth rate (CAGR) of about 20% between FY25 and FY28.
The note further observed that Vedanta’s current market price does not fully reflect the value of its aluminium and zinc businesses, while other key businesses are trading at valuations implying limited value, offering potential upside as clarity around the demerger and earnings trajectory improves.
Vedanta is a global producer of critical minerals, energy transition metals, power, and technology, with operations across India, South Africa, Namibia, Liberia, the UAE, Saudi Arabia, Korea, Taiwan, and Japan. It is the world’s largest integrated zinc producer, the fourth-largest silver producer, and among the top aluminum producers globally. Vedanta is also India’s only private oil and gas producer and one of the country’s largest private power generators.
The company’s consolidated revenue rose 6% YoY to Rs 39,218 crore in Q2 FY26, up from Rs 37,171 crore in Q2 FY25. However, profit after tax (PAT) declined 38% YoY to Rs 3,479 crore, compared to Rs 5,603 crore in Q2 FY25.