Vedanta Ltd, Vedanta Aluminium Metal, and Vedanta Oil & Gas have received rating upgrades from CRISIL Ratings following the group's demerger, with the agency citing stronger business and financial risk profiles across the entities. CRISIL upgraded Vedanta Ltd's long-term rating to 'CRISIL AA+/Stable' from 'CRISIL AA/Watch Developing' and reaffirmed its short-term rating at 'CRISIL A1+'. The rating agency also assigned a 'CRISIL AA+' rating with Stable outlook to the company's non-convertible debentures. Vedanta Aluminium Metal received an upgrade with its long-term rating raised to 'CRISIL AA+/Stable' from 'CRISIL AA/Watch Developing' while reaffirming the short-term rating at 'CRISIL A1+'. Vedanta Oil & Gas saw its long-term rating upgraded to 'CRISIL AA+/Stable' from 'CRISIL A+/Watch Developing' with its short-term rating withdrawn.
According to The Economic Times, CRISIL continues to fully consolidate Hindustan Zinc Ltd (HZL) with Vedanta due to strong strategic, operational and financial integration between the two companies. Following the demerger, HZL accounted for more than 95% of Vedanta's earnings in fiscal 2026 on a post-demerger basis, strengthening the company's business risk profile given HZL's position as a market-leading, low-cost zinc producer with strong profitability and cash generation. CRISIL noted that Vedanta's financial risk profile has improved significantly due to the continued consolidation of HZL and the allocation of debt to the demerged entities. Net debt to EBITDA under the demerged structure is estimated at around 0.7 times as of March 31, 2026, after factoring in guarantees extended to group entities such as VPL and VISL.
As reported by The Economic Times, Vedanta Oil & Gas is one of India's largest private-sector oil and gas producers, operating 44 blocks covering more than 47,000 square kilometres and producing approximately 87 kilo barrels of oil equivalent per day (kboepd) in fiscal 2026. The company benefits from a healthy reserve base, established producing assets and a competitive operating cost structure. More than 80% of production comes from its Rajasthan assets, while operating efficiency remains strong, supported by first-quartile operating costs and the production-sharing contract framework. CRISIL added that ongoing exploration programmes are expected to support production sustainability and reserve replacement over the medium term, although the gradual decline in production volumes over the past few years remains a key monitorable.
According to reports from CNBC TV18, PTI, ET Now, and The Economic Times, Vedanta Ltd has unveiled an ambitious production expansion roadmap across its businesses following the completion of its demerger. The company aims to nearly triple zinc and lead production to 3 million tonnes by 2031, double silver output to 1,500 tonnes, and raise copper production to 1 million tonnes by the end of the decade. Chairman Anil Agarwal outlined expansion plans for the group's demerged businesses, with Vedanta Aluminium Metal targeting to double its production capacity to 6 million tonnes in three years at the lowest cost globally. The company also plans to expand ferrochrome capacity to 500,000 tonnes by FY28, increase nickel production to 60,000 tonnes, and accelerate exploration across its critical and strategic mineral blocks, including lithium, cobalt, gold, copper, nickel, manganese, rare earths, and potash.
As reported by PTI, ET Now, and The Economic Times, Agarwal unveiled an ambitious vision for 'Vedanta Unlimited' at the company's 61st Annual General Meeting, emphasizing that the company's future will be built on three Ps - Produce More, Partner Better and Purpose Beyond Profit. Highlighting technology as Vedanta's strongest partner, Agarwal said "The future belongs to companies that embrace technology. Artificial intelligence is transforming industries across the world. Technology is our biggest partner. Whether it is exploration, operations, sustainability, safety or productivity, we are deeply embedding technology across every one of our businesses. Our goal is simple: To become smarter, faster, safer, and better." Agarwal said each of the five companies has the potential to become a $100 billion business over time. Shares of Vedanta Ltd ended 0.78% lower at ₹267.55 on the NSE on July 14, down ₹2.10 from the previous close.
Reflecting on the successful completion of Vedanta's historic demerger, Agarwal told shareholders that "A year ago, you were shareholders of one integrated company. Today, you own five opportunities. Very few corporate transformations anywhere in the world have created such an opportunity for shareholders. And we believe this is only the beginning." The transformation involved the independent listings of Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel, all of which spun off from the parent holding company, Vedanta Ltd, which remains listed as well. Following the demerger of Vedanta, effective May 1, 2026, the discontinued operations of the met coke and Nicomet businesses of the erstwhile MALCO Energy Ltd have been transferred to VISL (holding the iron and steel undertaking of the group) and Vedanta, respectively. VOGL's oil and gas operations have been transferred to VOGL, with the parent company now a 56.4% subsidiary of VRL.
