Synopsis:
Shares rose after a settlement with SEPCO resolved EPC disputes, clearing hurdles for a planned demerger. Despite modest revenue growth and profit decline, strong global presence, leadership in metals, and aggressive capacity expansion across key resources highlight long-term growth potential and investor confidence.
The shares of the multinational mining company gained up to 2 percent in today’s trading session after the company entered into a settlement agreement with SEPCO Electric Power Construction Corporation.
With a market capitalisation of Rs 1,78,880.70 crore, the shares of Vedanta Ltd were trading at Rs 457.45 per share, increasing around 1.44 percent as compared to the previous closing price of Rs 450.95 apiece.
Settlement Agreement
The shares of Vedanta Ltd have seen bullish movement after Talwandi Sabo Power Ltd (TSPL), a wholly owned subsidiary of Vedanta, agreed with SEPCO to resolve disputes related to engineering, procurement, and construction (EPC) contracts for a 3×660 MW thermal power project. Financial terms of the settlement were not disclosed.
Further, SEPCO’s withdrawal of arbitration claims eliminates the need for an NCLT hearing, easing a key hurdle in Vedanta’s planned demerger. Initially slated for March, the restructuring now targets completion by September-end. This settlement provides regulatory clarity, strengthens execution confidence, and marks a crucial step toward unlocking value through the company’s business separation strategy.
Meanwhile, the NCLT’s Mumbai bench has postponed Vedanta’s demerger hearing from September 17 after objections from the Ministry of Petroleum and Natural Gas. The rescheduled hearing now holds significant importance, as its outcome will shape the future course of Vedanta’s restructuring strategy and investor expectations.
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Financial & Operational Highlights
The company reported modest 6 percent revenue growth in Q1FY26 to Rs 37,824 crore, reflecting stable demand. However, net profit fell 13 percent to Rs 4,457 crore, indicating margin pressure or higher costs. While topline expansion remains steady, profitability challenges highlight the need for efficiency improvements to sustain growth momentum.
The company is a diversified natural resources player with exposure to 15+ commodities and presence across 60+ markets. It holds leadership in India for aluminium (45% share) and zinc (75% share), while also operating globally in Africa, the UAE, and Asia. With 10 critical mineral blocks secured, it is well-positioned for long-term growth in metals, power, and energy.
The company operates five key segments: Aluminium, Power, Zinc & Base Metals, Oil & Gas, and Steel & Ferrous. It is the third-largest aluminium producer globally, the fifth-largest private power generator, and India’s largest private crude producer. With strong assets like Zinc India, Cairn Oil & Gas, and Sesa Iron Ore, it ensures diversified growth and leadership across critical resources.
The company is driving aggressive capacity expansion across aluminium, zinc, silver, oil, steel, and power. Aluminium smelting will scale to 3.1 MTPA and alumina to 6 MTPA by FY28, while oil output rises to 150 kboepd. Merchant power doubles to 4.78 GW by FY26, and ferrochrome surges to 500 KTPA by FY28, reinforcing diversified growth.
Written by Abhishek Singh
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