Vedanta Ltd shares have fallen over 26% in just two months, erasing all gains made after the recent corporate demerger. The stock closed at ₹264.95 on Tuesday, trading below the price at which it opened following the demerger adjustment. After the demerger adjustment that began in April 2026, the stock jumped over 24% in less than a month to hit a post-demerger high of ₹360 apiece at the end of May. However, what followed was a consistent trend of decline, with the stock now trading significantly below its peak performance. The decline comes amid a broader downturn in metal stocks, with Nifty Metal crashing over 9% as part of an overall negative sentiment in the sector.
S&P Global-owned CRISIL Ratings upgraded Vedanta Ltd's long-term rating to CRISIL AA+/Stable from CRISIL AA/Watch Developing while reaffirming its short-term rating at CRISIL A1+. The agency also assigned a CRISIL AA+/Stable rating to the company's non-convertible debentures (NCDs). The ratings agency noted that Vedanta's financial risk profile has improved significantly due to the continued consolidation of Hindustan Zinc and the allocation of debt to the demerged entities. It added that lower leverage, sustained earnings and cash flows from HZL, along with the market value of Vedanta's investment in HZL, have strengthened the company's financial flexibility. Over the medium term, the expected ramp-up in Zinc International and improving contributions from the copper and ferro alloys businesses are expected to support earnings.
According to the company's consolidated annual financial data, Vedanta's revenue increased from ₹132,732 crore in 2022 to ₹152,968 crore in 2025, before declining to ₹78,437 crore in 2026. Net profit followed a similar pattern, peaking at ₹23,709 crore in 2022, falling to ₹7,537 crore in 2024, and recovering to ₹20,534 crore in 2025 before settling at ₹12,481 crore in 2026. Earnings per share (EPS) also showed fluctuations, reflecting the company's profitability trends throughout this period. The rating upgrade reinforces confidence in Vedanta's post-demerger structure, though future performance will continue to depend on commodity prices, production growth, capital allocation and free cash flow generation.
Technical analysis indicates the stock has retraced more than 78.6% of its prior rally from ₹238 to ₹360, suggesting it is still premature to classify the recent pullback as a trend reversal. The MACD remains well below the zero line, reinforcing the prevailing negative momentum. The stock has fallen 7 of the last 10 days and is down 6.59% for this period. The ₹250–245 zone is likely to provide immediate support, with a decisive breach below this range potentially triggering another leg of downside. On the upside, the ₹275–280 zone, which coincides with the 100-day EMA, is expected to act as the immediate resistance. The stock holds sell signals from both short and long-term Moving Averages, with a general sell signal from the relation between the two signals where the long-term average is above the short-term average.
Vedanta announced several significant dividend payments recently, including an interim dividend of ₹11.00 per share (1100%) announced on March 18, 2026, with an effective date of March 27, 2026. The company also declared another interim dividend of ₹16.00 per share (1600%) on August 18, 2025, effective August 26, 2025, and a first interim dividend of ₹7.00 per share (700%) on June 13, 2025, effective June 24, 2025. In terms of corporate actions, Vedanta had a bonus issue of 1:1 announced on April 28, 2008, with an ex-bonus date of August 8, 2008, and a stock split from face value of ₹10 to ₹1 effective on August 8, 2008. Looking ahead, investors will look at Hindustan Zinc's Q1 earnings print scheduled on July 24 as the next catalyst for Vedanta shares, with the medium-term zinc surplus from China remaining the structural cap on realisations into 2027.
