Vedanta Shares Jump 8%; Here’s Why

By Ventura Research Team 3 min Read May 4, 2026

Vedanta share price rises after Q4 FY26 results and demerger update

Summary:
Vedanta shares gained nearly 8% after the company posted strong Q4 FY26 earnings and moved closer to completing its long-awaited demerger. Record profit growth, improved debt metrics, and clarity on shareholder benefits supported investor sentiment. Shareholders holding stock by May 1, 2026, are eligible for shares in four newly demerged entities.

On April 4, 2026, Vedanta share prices opened at ₹277.00, touched a high of ₹294.85, and were trading around ₹290.30 as of 10:42 AM, up approximately 8% compared to the previous close of ₹271.55. Traded volume stood at 5.03 crore shares, significantly higher than the 30-day average volume of 2.19 crore shares.

A Strong Q4 for Vedanta

On April 29, 2026, the company announced its audited consolidated results for the quarter and full year ended March 31, 2026. Vedanta reported a record quarterly profit after tax of ₹9,352 crore for Q4 FY26, up 89% YoY and 20% QoQ. Revenue for the quarter came in at ₹51,524 crore, up 29% YoY and 12% QoQ. EBITDA hit ₹18,447 crore, up 59% YoY, while the EBITDA margin stood at 44% YoY, an improvement of 915 basis points YoY and 306 basis points QoQ. Return on Capital Employed came in at approximately 32%, improving 539 basis points YoY.

For the full financial year FY26, the numbers were equally strong. Annual revenue reached ₹1,74,075 crore, up 15% YoY. Full year EBITDA was ₹55,976 crore, up 29%, and annual PAT came in at ₹25,096 crore, up 22%. Net debt to EBITDA improved to 0.95x, the best level in 14 quarters, and was previously at 1.22x in Q4 FY25. Cash and cash equivalents stood at ₹28,485 crore, improving 38% YoY. The company also paid a dividend of ₹11 per share, and for the full year, total dividend payout came in at ₹34 per share, delivering a total shareholder return of 48.6% for FY26; 2.1 times the Nifty Metal Index.

After Two Years, Demerger Moves to Final Phase

While the quarterly results got immediate attention, the demerger process has been ongoing for a long time and reached an important milestone recently.

The Vedanta group initially made its announcement of the restructure of the company in September 2023. The idea was straightforward: a single listed entity holding diverse businesses: aluminium, zinc, oil and gas, iron ore, copper, and power, which tends to trade at a discount because investors cannot easily price each business separately. By splitting them up, each vertical gets its own management focus, its own capital allocation strategy, and its own investor base.

Approval from the stakeholders was given for the scheme, and the plan was accepted by the NCLT on December 31, 2025. The board of directors of Vedanta approved the demerger scheme of Vedanta on April 20, 2026, with May 1, 2026, as the date of demerger and record date.

According to the plan, Vedanta will demerge four business units into four different entities, namely Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Limited (TSPL), Malco Energy Limited (MEL), and Vedanta Iron and Steel Limited (VISL). The shareholders who are recorded up to May 1, 2026, will get one share from each of the above-mentioned four entities against one share of Vedanta. The shares of TSPL will have a face value of ₹10, whereas the shares of the other three entities will have a face value of ₹1 each. In simple words, if an investor holds 100 shares of Vedanta up to May 1, 2026, he will hold shares from five entities (one share from Vedanta plus four shares from each of the other entities).

Upon completion, Talwandi Sabo Power and Malco Energy will be renamed Vedanta Power Limited and Vedanta Oil and Gas Limited, respectively, subject to regulatory approvals. This means the group will effectively go from one listed entity to five.

What the CFO Said

Ajay Goel's comments on debt, he said that over the next three years, Vedanta aims to bring down net debt at the parent level to $3 billion. Debt reduction has been a consistent concern around Vedanta for years, and a stated three-year target with a specific number gives investors a clearer framework to work with than a general commitment to deleveraging.

On the currency side, Goel noted that rupee weakness is actually beneficial for Vedanta. He said that every one rupee depreciation against the US dollar contributes an EBITDA benefit of ₹1,000 crore. This matters in the current environment, where the rupee has faced pressure amid global uncertainty. For a company with significant dollar-denominated revenues from commodity exports, a weaker rupee translates into higher realisation in rupee terms, something that flows directly into operating profit.