Vedanta’s stock has entered a strong momentum zone. The global metal producer hit a new high of INR 542 (USD 6.03) on the BSE on Thursday, December 4, rising 2 per cent in intra-day trade. The stock has now rallied 10 per cent in eight sessions, reflecting a notable shift in investor sentiment. Over the past six months, vedanta limited has surged 24 per cent, sharply outperforming the BSE Sensex’s 5 per cent and the BSE Metal Index’s 12 per cent rise.
The current rally is not a one-off. It is the outcome of operational discipline - seen in reduced aluminium cash costs and steady zinc volumes - along with firmer global aluminium premiums, strategic expansion, and stronger global cues that are aligning at the same time.
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S&P’s positive outlook sparks confidence
A key trigger came from S&P Global. As per media reports, the agency revised its outlook on Vedanta Resources, Vedanta’s parent entity, to positive from stable, while reaffirming its B+ rating. S&P cited stronger earnings visibility, steady cost reductions and favourable metal prices as the drivers. These factors are expected to lift cash flows meaningfully.
The agency also highlighted that lower interest expenses at the holding company level will aid in deleveraging, reported a news source. This matters because refinancing pressure has long weighed on sentiment. A positive outlook eases concerns and signals a cleaner financial runway.
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Brokerages see this as a structural tailwind. In its December 2025 metals sector report, ICICI Securities noted, “We have a positive view on Vedanta due to its strategic capacity expansion amid healthy demand for aluminium and zinc, higher focus on value-added products, improving operating efficiencies, and capital-efficient operation.”
NCLT approval expands Vedanta’s downstream footprint
Another major development came on December 3, 2025. Vedanta informed exchanges that the NCLT approved its resolution plan to acquire Incab Industries Limited, a company undergoing insolvency proceedings. Incab manufactures power cables and industrial wires, which rely heavily on copper and aluminium.
vedanta limited will acquire 100 per cent shareholding and take full management control at an upfront cost of INR 545 crore (USD 65.7 million), funded through internal accruals. This deal extends Vedanta into the downstream copper and aluminium value chain, deepening vertical integration at a time when demand for grid, EV, and transmission infrastructure materials is accelerating.
This also aligns with India’s rising interest in critical minerals. The government has listed 30 minerals vital for clean energy and industrial growth, while the U.S. recently added silver and copper to its critical minerals list. Vedanta, which secured 10 critical mineral blocks in recent auctions, including nickel, cobalt, copper, graphite, and potash, is positioning itself as a long-horizon metals supplier.
Brokerages see a stronger earnings trajectory
Nuvama Institutional Equities, a financial services firm, expects further upside. The brokerage firm said Vedanta benefits from scale, diversification, and ownership of low-cost zinc-lead-silver assets. It noted that growth will come from a volume uptick in key divisions – aluminium, zinc, and cost efficiencies at aluminium operations.
Nuvama highlighted progress in Vedanta’s “3Ds strategy – demerger, delivery, and deleveraging.” It sees several triggers ahead, including:
The brokerage expects EBITDA to grow at a CAGR of 16 per cent between FY25 and FY28, supported by lower aluminium cost of production and stronger commodity prices. It forecasts net debt to fall to INR 61,000 crore (USD 7.35 billion) by the end of FY27 and maintains a BUY rating with a target price of INR 686 per share (USD 8.26 per share).
Vedanta’s recent rise is not speculative. It rests on ratings improvement, downstream expansion, commodity tailwinds, critical mineral positioning, and financial restructuring progress. Investors are rewarding these shifts.
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