+
Vedanta Secures Highest Credit Rating Since 2014
ECONOMY & POLICY

Vedanta Secures Highest Credit Rating Since 2014

Vedanta Group has received its highest domestic credit rating in over a decade after ICRA upgraded the long-term ratings of key group entities. Vedanta Limited and Vedanta Aluminium Metal Limited have been upgraded to AA+ with a Stable outlook, while Talwandi Sabo Power Limited was upgraded to AA-/Stable from A+/Watch Developing. The group’s short-term rating was reaffirmed at A1+, the highest category.

The rating action marks Vedanta’s highest domestic credit rating since 2014. The two largest businesses emerging from the demerger framework, which together account for over 75 per cent of the group’s long-term debt, have now secured AA+ ratings.

ICRA cited stronger profitability, robust operational performance, improved liquidity and enhanced financial flexibility across key businesses. It expects these trends to continue through FY27, supported by favourable commodity dynamics, better cost structures and strong earnings visibility across aluminium, zinc and oil and gas businesses.

The agency also noted Vedanta’s improved refinancing profile, supported by lower borrowing costs, proactive debt repayments and extended maturities. Average interest costs declined by around 200 basis points in FY26, strengthening debt servicing and reducing refinancing risk at the promoter level.

ICRA removed the Watch on the ratings following the demerger, effective 1 May. The restructuring is expected to create more focused and independently scalable businesses with improved capital allocation discipline and financial flexibility.

The upgrade comes amid growing interest from domestic and international banks and financial institutions in Vedanta’s refinancing plans. Global rating agencies S&P, Moody’s and Fitch have also upgraded Vedanta Resources over the past two months, reflecting stronger confidence in the group’s liquidity, financial profile and long-term growth outlook.

Vedanta Group has received its highest domestic credit rating in over a decade after ICRA upgraded the long-term ratings of key group entities. Vedanta Limited and Vedanta Aluminium Metal Limited have been upgraded to AA+ with a Stable outlook, while Talwandi Sabo Power Limited was upgraded to AA-/Stable from A+/Watch Developing. The group’s short-term rating was reaffirmed at A1+, the highest category.The rating action marks Vedanta’s highest domestic credit rating since 2014. The two largest businesses emerging from the demerger framework, which together account for over 75 per cent of the group’s long-term debt, have now secured AA+ ratings.ICRA cited stronger profitability, robust operational performance, improved liquidity and enhanced financial flexibility across key businesses. It expects these trends to continue through FY27, supported by favourable commodity dynamics, better cost structures and strong earnings visibility across aluminium, zinc and oil and gas businesses.The agency also noted Vedanta’s improved refinancing profile, supported by lower borrowing costs, proactive debt repayments and extended maturities. Average interest costs declined by around 200 basis points in FY26, strengthening debt servicing and reducing refinancing risk at the promoter level.ICRA removed the Watch on the ratings following the demerger, effective 1 May. The restructuring is expected to create more focused and independently scalable businesses with improved capital allocation discipline and financial flexibility.The upgrade comes amid growing interest from domestic and international banks and financial institutions in Vedanta’s refinancing plans. Global rating agencies S&P, Moody’s and Fitch have also upgraded Vedanta Resources over the past two months, reflecting stronger confidence in the group’s liquidity, financial profile and long-term growth outlook.

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code