Shares of Vedanta Ltd. have experienced a significant rally following the demerger of its businesses on April 30, gaining nearly 20 percent in the first half of May 2026. This surge has prompted brokerages to issue fresh reports, indicating further upside potential for the metal and mining conglomerate.
Vedanta's Strategic Demerger and Market Performance
Earlier this month, Vedanta successfully demerged four of its key businesses into separate entities: Vedanta Iron & Steel, Malco Energy Ltd, Vedanta Aluminium Metal Ltd, and Vedanta Power. These new companies are set to debut on the stock market in the coming weeks. Eligible shareholders received one stock of each new company for every one share of Vedanta Ltd. held on the record date.
While the stock saw a slight dip of over 3.2 percent on Monday, trading at Rs 320.45, it had recently hit an adjusted 52-week high of Rs 340.70 on Thursday, May 14. This strong performance marks a significant recovery, with the stock more than doubling investor wealth from its adjusted 52-week low of Rs 151.13 recorded on August 29, 2025.
Q4 FY26 Financial Highlights
Vedanta reported robust financial results for the fourth quarter ending March 31, 2026. The company saw an impressive 89 percent year-on-year (YoY) jump in net profit, reaching Rs 9,352 crore. Revenue also climbed by 29 percent YoY to Rs 51,524 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 59 percent YoY to Rs 18,447 crore, with margins improving by 915 basis points to 44 percent for the quarter.
Analyst Outlook and Target Price
Brokerage firm BP Equities has issued a 'buy' rating for Vedanta's continuing operations, setting a target price of Rs 387. The firm highlights that the demerger has created a more focused zinc-silver-copper business, leading to materially improved profitability visibility. They noted that integrated operations with captive mines and smelters ensure a larger portion of higher metal realizations directly contributes to profitability.
"Commodity prices across silver, zinc and copper are expected to remain supportive due to continued demand from electrification, renewable energy, infrastructure and EV-related investments," BP Equities stated, adding that "reduction in the conglomerate discount following the demerger-led simplification of the business structure also supports our constructive outlook on the stock."
Prior to the demerger, ICICIDirect had estimated Vedanta's stock price to trade in the range of Rs 300-325 per share, emphasizing that the residual Vedanta would derive most of its value from its stake in Hindustan Zinc Ltd.
Technical View and Future Prospects
From a technical perspective, Master Capital indicates that Vedanta remains in a strong uptrend, consistently forming higher highs and higher lows. The recent rally above the Rs 320 zone confirms the continuation of the broader uptrend. Momentum indicators support this upward movement, with potential for further upside towards Rs 355-365 levels in the coming weeks, provided the stock sustains above the Rs 315-320 support zone.
Anil Agarwal-led Vedanta is recognized as one of India’s largest natural resources companies, with extensive operations across zinc, silver, copper, ferrochrome, and critical minerals. It serves vital industries like infrastructure, construction, automobiles, renewable energy, electronics, defense, and manufacturing, both domestically and globally. India accounts for 65 percent of its revenues, with international operations contributing the rest.