Vedanta Ltd., the metals and mining giant, has announced May 1 as the record date for its highly anticipated demerger. This strategic move, which received approval from the National Company Law Tribunal (NCLT) on December 16, 2025, will spin off key business verticals into four distinct, separately listed entities, with the remaining operations forming the residual Vedanta Ltd.
Analysts, including ICICIdirect, view the demerger as a significant value-unlocking event for Vedanta. The high-growth Aluminium and Power businesses, in particular, are expected to command better valuations as standalone companies compared to their current structure within the conglomerate. Vedanta's aluminium division is projected to be a primary driver of revenue and margins for the group going forward.
The demerger accounting, under IND AS 105, was incorporated into Vedanta's Q3 results, providing an early glimpse of the separate performance of its aluminium, oil and gas, and iron and steel segments.
The Four New Listed Entities
The four proposed new companies set to be listed are Vedanta Aluminium Metal Limited (VAML), Vedanta Power (to be renamed from Talwandi Sabo Power), Vedanta Oil & Gas (to be renamed from Malco Energy Limited), and Vedanta Iron and Steel Limited.
Vedanta Aluminium Metal Limited (VAML)
VAML is positioned as one of the world’s leading aluminium producers and India’s largest, with extensive operations across Odisha and Chhattisgarh. It serves customers in over 60 countries. In the fiscal year 2025, VAML produced 2.42 million tonnes of aluminium, accounting for more than half of India’s total production.
Vedanta Power (Talwandi Sabo Power Limited)
Operating under a long-term power purchase agreement (PPA) with the Punjab State Electricity Board (PSEB), Talwandi Sabo Power Limited (TSPL) ensures stable returns, with its revenue primarily linked to plant availability. For FY25, power sales reached 12,822 million units, though this represented a 5 percent decrease due to specific operational constraints.
Vedanta Oil & Gas (Malco Energy Limited)
Currently known as Malco Energy, this 100 percent subsidiary has expanded its portfolio significantly. It entered the met coke business by acquiring assets in Gujarat in May 2021 and subsequently acquired nickel assets in January 2022. Commercial operations for met coke began in fiscal year 2022, followed by nickel operations in the first quarter of fiscal year 2023.
Vedanta Iron and Steel Limited
This ferrous resources company encompasses several key subsidiaries, including ESL Steel Limited, Sesa Resources Limited, and Sesa Mining Corporation Limited in India, as well as the Bloom Foundation in Liberia. Its integrated steel plant in Bokaro, established in 2006, boasts a production capacity of 1.5 million tonnes of steel per year (MTPA), producing a diverse range of products such as pig iron, billets, TMT bars, wire rods, and ductile iron pipes.
In the December quarter results, the aluminium segment (reported under discontinued businesses) generated revenues of Rs 4,709 crore for the nine months ended December 31. The oil & gas segment contributed Rs 699.90 crore, and iron ore accounted for Rs 473.50 crore during the same period.