Vedanta Shares See Near-Doubling in One Year Amid Demerger Optimism and Steady Financial Performance

Vedanta Shares Surge 84.5% in Last Year as Investors Bet Big on Demerger Optimism

The share price of mining conglomerate Vedanta Limited has nearly doubled in the last one year, driven by optimism from the demerger and steady financial performance. According to stock exchange data, Vedanta stock advanced 84.5% between April 30, 2025 and April 29 this year, outperforming the BSE benchmark Sensex, which declined over 3% in the same period.

The company's demerger, which was approved by its board effective May 1, aims to enable each of the five independent, sector-specific businesses to pursue its own growth strategy and attract a broader investor base. As part of the restructuring, shareholders having one share of Vedanta as of April 29 will receive four additional shares of the resulting companies. The company's stock traded ex-demerger on April 30.

The demerger is expected to drive upside through potential valuation re-rating and improved capital allocation. According to Emkay Global Financial Services Ltd, this will enable each entity to command a premium over diversified miners, and focused management teams will be able to allocate capital more effectively. The demerger will also simplify Vedanta's corporate structure and provide opportunities for global investors, including sovereign wealth funds, retail investors, and strategic investors.

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Vedanta had earlier said that the demerger will help in simplifying its corporate structure with sector-focussed independent businesses and provide opportunities to global investors, including sovereign wealth funds, retail investors, and strategic investors, with direct investment opportunities in dedicated pure-play companies linked to India's remarkable growth story through Vedanta's world class assets. It will also provide a platform for individual units to pursue strategic agendas more freely and better align with customers, investment cycles, and end markets.

As part of the demerger, Vedanta plans to separately list four entities: Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL), and Vedanta Iron and Steel Limited (VISL). Vedanta will file with stock exchanges next week for listing approval of its demerged entities, with shares expected to list and commence trading by mid-June.

In its latest quarterly results, Vedanta Ltd reported an 89% rise in its consolidated profit after tax at Rs 9,352 crore in the quarter ended March 2026, citing higher sales volume amid rising global metal prices as well as the weakening rupee's exchange rate. The revenue from operations during the latest fourth quarter also rose by 29% to Rs 51,524 crore from Rs 39,789 crore a year ago.

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Vedanta Ltd is the world's leading producer of metals, oil & gas, critical minerals, power, and technology.