Brokerages Bullish on Vedanta’s FY26 Growth Prospects
ECONOMY & POLICY

Brokerages Bullish on Vedanta’s FY26 Growth Prospects

Major Indian and global brokerages remain optimistic about Vedanta Ltd’s performance for FY26, highlighting firm London Metal Exchange (LME) pricing, disciplined cost controls, a strong aluminium business, and deleveraging as the company’s key growth drivers.
Several upcoming growth projects, slated for commissioning over the next few quarters, also support the positive outlook.
JP Morgan reported that Vedanta’s consolidated EBITDA for Q1 was broadly in line with expectations. Segments such as aluminium, oil and gas, and power performed better than anticipated, resulting in a segmental EBITDA beat. The firm expects Vedanta’s ongoing initiatives, including capacity expansion and vertical integration in aluminium, to offer cost advantages and support earnings growth as LME prices trend upwards through FY26 and FY27.
Citi Research echoed similar views, adding that Vedanta Resources’ leverage remains comfortable. It cited medium-term upside in LME aluminium prices, lower costs, and the planned demerger as key positives. Citi also noted limited global aluminium supply growth.
Mumbai-based Nuvama Institutional Equities expects over 10 per cent quarter-on-quarter EBITDA growth in Q2FY26, driven by higher prices and lower aluminium production costs. It noted that major aluminium projects are likely to be commissioned in Q2FY26. Net debt to EBITDA (excluding Hindustan Zinc) is forecast to fall from 2.7x in FY25 to 1.7x by the end of FY26. The demerger is expected to conclude in Q4FY26.
All of Vedanta’s key projects, except its coal blocks, are expected to be commissioned in the current fiscal, offering improved volume and cost efficiency.
UK-based Investec, in its post-earnings note, identified Vedanta as a major beneficiary of the Indian Rupee’s depreciation. Other positives included falling alumina prices and attractive dividend yields. The firm maintained its ‘Buy’ rating on the stock.
Brokerages such as Kotak Institutional Equities and IIFL also highlighted the benefits of operational efficiencies and deleveraging across both Vedanta Ltd and its parent company.
Vedanta’s adjusted profit after tax rose 13 per cent year-on-year to Rs 500 billion. The company reported its highest-ever first-quarter EBITDA at Rs 1.0746 trillion, up 5 per cent from the previous year. 

Major Indian and global brokerages remain optimistic about Vedanta Ltd’s performance for FY26, highlighting firm London Metal Exchange (LME) pricing, disciplined cost controls, a strong aluminium business, and deleveraging as the company’s key growth drivers.Several upcoming growth projects, slated for commissioning over the next few quarters, also support the positive outlook.JP Morgan reported that Vedanta’s consolidated EBITDA for Q1 was broadly in line with expectations. Segments such as aluminium, oil and gas, and power performed better than anticipated, resulting in a segmental EBITDA beat. The firm expects Vedanta’s ongoing initiatives, including capacity expansion and vertical integration in aluminium, to offer cost advantages and support earnings growth as LME prices trend upwards through FY26 and FY27.Citi Research echoed similar views, adding that Vedanta Resources’ leverage remains comfortable. It cited medium-term upside in LME aluminium prices, lower costs, and the planned demerger as key positives. Citi also noted limited global aluminium supply growth.Mumbai-based Nuvama Institutional Equities expects over 10 per cent quarter-on-quarter EBITDA growth in Q2FY26, driven by higher prices and lower aluminium production costs. It noted that major aluminium projects are likely to be commissioned in Q2FY26. Net debt to EBITDA (excluding Hindustan Zinc) is forecast to fall from 2.7x in FY25 to 1.7x by the end of FY26. The demerger is expected to conclude in Q4FY26.All of Vedanta’s key projects, except its coal blocks, are expected to be commissioned in the current fiscal, offering improved volume and cost efficiency.UK-based Investec, in its post-earnings note, identified Vedanta as a major beneficiary of the Indian Rupee’s depreciation. Other positives included falling alumina prices and attractive dividend yields. The firm maintained its ‘Buy’ rating on the stock.Brokerages such as Kotak Institutional Equities and IIFL also highlighted the benefits of operational efficiencies and deleveraging across both Vedanta Ltd and its parent company.Vedanta’s adjusted profit after tax rose 13 per cent year-on-year to Rs 500 billion. The company reported its highest-ever first-quarter EBITDA at Rs 1.0746 trillion, up 5 per cent from the previous year. 

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