The much-anticipated demerger aimed at unlocking value by carving out focused, world-class businesses, has been is effective May 1, 2026. Each entity will benefit from sharper strategic direction, disciplined capital allocation, and clearly defined growth paths, enabling them to operate as independently scalable, globally competitive companies benchmarked against the best in the industry, Agarwal said.
“The most awaited milestone for Vedanta this year is our demerger, effective 1st May 2026. This transformation marks a pivotal step in unlocking value by creating focused, world-class companies, each with sharper strategic clarity, disciplined capital allocation, and distinct growth pathways. Through this demerger, each of our businesses is emerging as a “Vedanta” in its own right – globally competitive, independently scalable, and benchmarked to the best in the world,” the letter read.
Commenting on Vedanta’s earnings performance, the Chairman said FY26 marked a record year for metal major, with the company reporting its highest-ever profit and revenue, alongside strong shareholder returns.
The company reported a 92% year-on-year (YoY) surge in consolidated net profit to Rs 6,698 crore for the March-ended quarter, compared with Rs 3,483 crore in the year-ago period. Its total revenues from operations in Q4FY26 stood at Rs 24,609 crore, rising 47% YoY versus Rs 16,686 crore in the corresponding quarter of the last financial year.
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Read more: Vedanta Q4 Results: Cons profit zooms 92% YoY to Rs 6,698 crore, revenue jumps 47%
He highlighted that the spotlight is now on the structural transformation through the demerger, which will split the conglomerate into multiple independent, globally competitive entities.Each vertical — from aluminium and oil & gas to power and iron & steel — is being positioned as a standalone growth engine with distinct expansion plans, Agarwal said.
Vedanta Aluminium plans to double capacity to 60 lakh tonnes, targeting global cost leadership, while its oil & gas arm is eyeing a sharp ramp-up in production backed by a $5 billion investment. The power business is targeting aggressive expansion to 12 GW, alongside diversification into clean energy, including hydropower and nuclear, he added.
On the iron & steel segment, he said the vertical is scaling up green and specialty steel capacity, supported by strong raw material linkages, while the flagship entity will continue to house key assets like Hindustan Zinc, copper, and critical minerals.
Agarwal emphasised that the demerger, coupled with ongoing investments of Rs 15,000 crore in growth capex, will create a structurally stronger and more resilient group. With improved leverage metrics and a focus on cost leadership, cash generation, and technology adoption, Vedanta is positioning itself to capitalise on long-term demand trends across infrastructure, energy transition, and manufacturing.
The next phase, he noted, will be driven by scale, efficiency, and innovation, with the ultimate goal of delivering sustained value for shareholders while contributing to India’s industrial growth story.
Vedanta shares today ended at Rs 303.90 on the NSE, gaining 3.14% over the Monday closing price.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)