Shares of Vedanta Power and Vedanta Iron & Steel experienced declines of up to 8% during Friday's trading session, as investors moved to book profits after substantial recent gains. Vedanta Power Ltd saw its stock drop 7.88% to Rs 44.77 apiece on the BSE, following a robust 20.75% rally over the previous two sessions. Similarly, Vedanta Iron & Steel Ltd initially fell 5% to Rs 40.51, though it later recovered to trade flat. This decline came after the stock had jumped 10% on each of the two preceding days.
Post-Demerger Volatility and Analyst Insights
The recent volatility follows the listing of four demerged entities from Vedanta Ltd—Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Iron & Steel, and Vedanta Power—on June 15, 2026. This demerger has led to strong momentum and speculative trading in these counters, according to Kranthi Bathini of WealthMills Securities. Speaking to BTTV, Bathini noted that too much money was chasing these stocks and advised investors to wait for a couple of quarters to assess their performance post-listing. He emphasized that while these companies might perform well long-term, quarterly earnings would be crucial for serious investment decisions.
Vedanta Power's Ambitious Expansion
Vedanta Power, currently India's fifth-largest thermal power producer with 4.2 GW of operational capacity, is targeting a significant expansion. The company plans to increase its thermal capacity from 4.2 GW to 12 GW by FY33, backed by a planned capital expenditure of Rs 66,000 crore. This expansion is projected to more than double its EBITDA from Rs 1,500 crore to Rs 3,260 crore by FY29, driven by the commissioning of the 600 MW Sakti plant and anticipated lower fuel costs. Analysts also highlight that nuclear power is being evaluated as a potential future growth avenue for the company.
Vedanta Iron & Steel: Resource Security and Growth Plans
Vedanta Iron & Steel operates as a resource-secure and debt-free business, currently producing around 4 million tonnes of steel annually. The company has a clear roadmap to scale its capacity to 15 million tonnes per annum. A significant competitive advantage for Vedanta Iron & Steel is its secure access to critical inputs, including nearly 4 billion tonnes of iron ore resources across Goa, Odisha, and Karnataka. Additionally, it benefits from approximately 800 kilotonnes per annum (KTPA) of metallurgical coke and convenient access to gas pipeline infrastructure.