Vedanta on Thursday approved the demerger of its surplus real estate assets into a separate company, Vedanta Property Platforms (VPPL), as the mining and metals major reported a 72% jump in consolidated net profit for the first quarter of FY27 on the back of higher metal prices, stronger sales and a weaker rupee.
Consolidated net profit rose 71.8% year-on-year to Rs 5,473 crore for the quarter ended June, from Rs 3,185 crore a year earlier. Revenue from operations surged 53.6% to Rs 24,205 crore from Rs 15,754 crore, while expenses increased to Rs 17,558 crore from Rs 13,203 crore, the company said in a regulatory filing.
The board also approved the draft scheme of arrangement to transfer the company’s real estate undertaking to VPPL on a going-concern basis, saying the move would unlock value from non-core assets.
Real Estate Carve-Out
The portfolio proposed to be demerged comprises about 2,200 acres of industrial land and around 55,000 sq ft of residential and commercial properties. Under the proposed vertical split, Vedanta shareholders will receive one share of VPPL for every 20 shares held in Vedanta.
An investor presentation pegged the portfolio at 22 assets across the country, comprising about 2,264 acres of land parcels spread across 14 sites and 53,185 sq ft of residential and office space across eight units.
The assets are located across Maharashtra, Goa, Tamil Nadu, Gujarat and Karnataka, and include land parcels, flats, buildings and bungalows.
Vedanta said the properties had been accumulated over the years through various acquisitions and are currently housed within its operating businesses. These include strategically located non-core land parcels, built-up assets and investments in other real estate-owning entities.
The company said the portfolio could be developed into industrial and manufacturing parks, food processing and agro-industrial parks, logistics and warehousing parks, data centres and digital infrastructure, IT and ITES parks, business campuses and other group ventures. VPPL may also explore schemes of arrangement with other Vedanta group companies to acquire their real estate undertakings and evaluate acquiring real estate rights from group firms Meenakshi Energy and Incab Industries.
“This is yet another exciting announcement from Vedanta. After the recent success of the five-way demerger creating ‘pure-play’ entities across oil and gas, aluminium, power, and steel, we plan to demerge the surplus real estate assets into an independent ‘pure-play’ company to unlock significant value for the stakeholders,” chairman Anil Agarwal said.
The real estate demerger comes weeks after Vedanta listed four of its previously demerged businesses—power, oil & gas, iron & steel, and aluminium—on the stock exchanges.
“We have delivered a strong start to FY27, with robust performance across all business segments of demerged Vedanta… This consistent operational execution across our portfolio reflects the strength of our underlying asset base and our continued focus on volume growth, cost efficiency and value creation,” executive director Arun Misra said.
Chief financial officer Ajay Goel said Vedanta’s demerger had unlocked significant shareholder value, with the combined market capitalisation of the resulting companies increasing by over Rs 71,000 crore in the first quarter. He added that continuing operations posted a profit after tax of Rs 5,294 crore, up 152% year-on-year, while EBITDA rose 98% to Rs 8,469 crore.
The board also reappointed Misra as executive director and designated him chief executive officer for one year with effect from August 1, subject to shareholders’ approval.
Vedanta’s net debt declined to Rs 8,299 crore as on June 30, 2026, from Rs 10,522 crore in the preceding quarter, driven mainly by strong operating cash flows. (Input from PTI)