Vedanta Demerger: Why Share Price is Showing Over 63% Decline on Thursday; Here’s What Investors Need to Know

The Indian equity markets traded weak on Thursday, with the Nifty 50 index declining by 254.95 points or 1.05 per cent to 23,922.70 during the session. Amid the broader weakness, Vedanta remained sharply in focus on the bourses after the stock traded ex-demerger adjustment ahead of its May 1 record date for the long-awaited business restructuring. Due to the price adjustment linked to the demerger entitlement, Vedanta shares were quoted at Rs 289.50 on Thursday as against the previous closing level near Rs 773, which mechanically reflected a sharp decline on trading screens. However, the move does not represent a normal destruction in shareholder value as existing investors will receive shares in the newly demerged entities under the approved restructuring scheme. After opening on the adjusted basis, the stock continued to witness mild selling pressure and was trading lower by 5.08 per cent at Rs 275.75 later in the session.

Vedanta Q4FY26 Financial Performance

Vedanta reported consolidated total revenue from operations of Rs 52,851 crore in Q4FY26 as against Rs 40,455 crore in Q4FY25, registering a growth of 30.6 per cent YoY. Net profit after Tax surged to Rs 9,352 crore compared to Rs 4,961 crore reported in the corresponding quarter last year, reflecting an increase of 88.5 per cent YoY.

Profit attributable to owners of Vedanta stood at Rs 6,698 crore in the March quarter as against Rs 3,483 crore in Q4FY25, while earnings per share rose sharply to Rs 17.15 from Rs 8.92 in the year-ago period. The company stated that the quarter marked one of its strongest earnings performances, supported by robust aluminium, zinc, copper and oil & gas business contributions.

Vedanta FY26 Annual Performance

For the financial year ended March 31, 2026, Vedanta reported total revenue from operations of Rs 1,77,194 crore as against Rs 1,52,968 crore in FY25, registering a growth of 15.8 per cent YoY.

Net profit after tax for FY26 stood at Rs 25,096 crore compared to Rs 20,535 crore in the previous financial year, reflecting a rise of 22.2 per cent YoY. Profit attributable to owners of Vedanta came in at Rs 17,391 crore versus Rs 14,988 crore in FY25. Annual earnings per share stood at Rs 44.58 compared to Rs 38.97 in the previous year.

Dividend Payout 

Vedanta’s Board had earlier approved a third interim dividend of Rs 11 per equity share for FY26 at its meeting held on March 23, 2026. With this, the total dividend declared by the company for the full financial year 2025-26 stands at Rs 34 per equity share on face value of Re 1 each, continuing Vedanta’s track record of maintaining strong cash returns to shareholders despite the ongoing restructuring exercise.

About Vedanta 

Vedanta Ltd is one of India’s largest diversified natural resources companies with business interests across aluminium, zinc, lead, silver, copper, iron ore, steel, oil & gas, power and Semiconductors. The company operates a large integrated mining and metals platform in India and overseas and remains among the country’s highest dividend-paying commodity groups.

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Disclaimer: This article is for informational purposes only and not investment advice.