The stock of Vedanta has been rising steadily over the last few months. The rally has been on the back of several developments including sharp rise in commodity prices and hopes of a demerger being approved.
In this editorial, we will consider the prospects of Vedanta in the next three years. However, readers should note that this is not a recommendation on the stock in any form
About Vedanta
Vedanta is one of the world’s foremost natural resources conglomerates, with primary interests in aluminium, zinc-lead-silver, oil and gas, iron ore, steel, copper, power, ferro alloys, nickel, semiconductor and glass. The company has assets based across India, South Africa, Namibia, and Liberia.
Factors that Will Decide Vedanta’s Growth in the Next 3 Years
Notable factors that will determine the growth of Vedanta in the next three years include:
- Demerger: The biggest trigger for the stock would be a proposed demerger at the company. There are plans to split the company into independent entities for aluminium, zinc, energy, and metals (including base metals and ferroalloys) aimed at enhancing focus, attracting segment-specific investors, and boost valuations through specialised management. According to Vedanta’s demerger scheme, every Vedanta shareholder will receive 1 additional share in each of the 4 newly demerged companies on the completion of the demerger process. If the demerger gets the final approval, Vedanta would be split into 4 different companies.
- Demand Tailwinds: Metals produced by Vedanta — aluminium, zinc, copper, iron ore, etc. — are widely used in infrastructure, construction, power, EVs and renewable-energy equipment. As India continues with infrastructure push & energy transition, demand for these metals is expected to remain strong. This should help the company.
The Strengths that Can Propel Growth
Here are some strengths Vedanta possesses.
- Strong Diversification Across Commodities: Vedanta operates aluminium, zinc, oil & gas, iron ore, power, copper, silver, and now critical minerals. This reduces dependence on any single commodity cycle and stabilises cash flows.
- Leadership Positions in Multiple Segments: Vedanta is India’s top aluminium producer, the second largest zinc-lead producer globally (via Hindustan Zinc), one of India’s largest private oil & gas producers, and is among the top power producers in India. This creates cost advantages, better bargaining power, and long-term profitability.
- Large, Ongoing Capex for Future Growth: Vedanta has one of the largest capex programs in the Indian metals sector. Expansions in aluminium, zinc, power, and critical minerals will drive volume growth.
- Beneficiary of India’s Structural Growth Story: Vedanta’s metals are used in infrastructure, railways & roads, power transmission, EVs & renewable energy and consumer electronics. With India’s capex cycle accelerating, Vedanta is directly linked to nationwide demand growth.
Financials of Vedanta
Let’s now take a look at the financial numbers of Vedanta.
In Q2 FY26, Vedanta reported a jump in consolidated revenue of Rs 398,680 m, compared to Rs 376,340 m in the same period last year. However, the company reported a sharp drop in consolidated net profit to Rs 34,800 m compared to
Rs 56,030 m in the same period last year.
What to Expect from Vedanta in Next 3 Years?
The prospects of Vedanta Ltd would depend on the approval of the demerger. Vedanta’s demerger into five independent listed entities remains in progress as of December 2025, with key approvals secured but awaiting final NCLT clearance and government nod, pushing the timeline to March 2026.
The deadline was extended multiple times—to September 2025, then March 2026—due to these delays, though Vedanta has stated its commitment to the process of value unlocking. Should the demerger finally get approval, investors could see value unlocking which could be a big trigger for the stock price.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/
writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary
