Vedanta’s stock price touched lifetime highs repeatedly during the final three months of 2025, driven by a record-breaking quarter and a court approval that will reshape the Indian metals giant. The Mumbai-listed miner reported $5.2 billion in revenue for the three months ending 31st December, marking its strongest quarterly performance ever.
Profit jumped 60% year-on-year to $0.9 billion.
The surge came as the National Company Law Tribunal greenlit Vedanta’s long-awaited demerger proposal, a decision that had been months in the making. Within weeks, three international credit agencies—S&P, Moody’s, and Fitch Ratings—upgraded the company’s outlook from Stable to Positive. Two domestic agencies, CRISIL and ICRA, reaffirmed their AA ratings.
Investors responded with force. Vedanta delivered a 30% total shareholder return during the quarter, outpacing India’s Nifty benchmark by five times and the Nifty Metal index by 2.7 times. Over five years, the company has generated a 428% return, supported by a cumulative dividend yield of 73.5%.
The operational performance beneath those returns showed striking margin expansion. EBITDA climbed 34% to $1.7 billion, whilst margins widened by 629 basis points to reach 41%. The company’s net debt-to-EBITDA ratio improved to 1.23 times from 1.40 times, even as it ploughed $1.3 billion into growth capital expenditure during the first nine months of its financial year.
Production milestones punctuated the quarter across multiple divisions. The aluminium business recorded its highest-ever quarterly output at 620,000 tonnes, up 1% year-on-year, whilst alumina production surged 57% to 794,000 tonnes. Zinc India delivered its strongest third-quarter mined metal production at 276,000 tonnes, up 4%, alongside refined metal output of 270,000 tonnes, also up 4%. The zinc division achieved its lowest third-quarter cost of production in five years at $940 per tonne, down 10%.
“This has been a remarkable quarter for Vedanta,” said Ajay Goel, the company’s chief financial officer. “The reaffirmation of our AA credit rating by CRISIL and ICRA following the NCLT demerger order, along with upgrades in VRL credit rating outlook from Stable to Positive by S&P, Moody’s & Fitch Ratings, underscore the market confidence in Vedanta’s growth trajectory. We are now entering an exciting phase of growth and value unlocking, creating long-term value for all our stakeholders.”
The demerger represents a strategic pivot for Vedanta, which operates across metals, oil and gas, critical minerals, power, and technology. The approval positions the conglomerate to unlock value across its diverse portfolio, a move that mirrors similar restructuring efforts by other Indian industrial groups seeking to sharpen focus and improve capital allocation.
Return on capital employed reached 27%, improving by 296 basis points year-on-year—a metric that caught the attention of analysts tracking the Indian metals sector. The double-digit return came during a period when global commodity prices faced pressure and Chinese demand remained uncertain.
The alumina production surge—57% in a single year—points to capacity additions coming online and operational improvements across the supply chain. That jump in output came as the company maintained tight cost discipline in its zinc operations, where the $940-per-tonne figure represents a five-year low for any third quarter.
For investors who entered five years ago, the 428% total return has substantially outpaced broader market gains. That performance included regular dividend payouts totalling 73.5% of the initial investment over the period, providing both capital appreciation and income.
The credit rating upgrades carry particular weight in Indian capital markets, where access to lower-cost debt can significantly impact profitability for capital-intensive businesses like mining and metals production. The shift from Stable to Positive outlooks by three international agencies signals improved confidence in the company’s financial trajectory post-demerger.
Whether the restructured entity can maintain its production momentum whilst executing the demerger remains the critical question for the coming quarters. The $1.3 billion in growth capital expenditure suggests management remains committed to expansion even as it navigates the complex process of splitting the business.
By year’s end, the shape of that demerged structure will become clearer. For now, the tribunal’s approval marks the most significant corporate milestone in Vedanta’s recent history—one that arrived alongside the strongest quarterly numbers the company has ever posted.