Vedanta posts record FY26 earnings as demerger ushers in next growth phase

New Delhi, May 5 (PTI) Billionaire Anil Agarwal said Vedanta Ltd delivered a record financial performance in FY26 and is entering a new phase of restructuring aimed at unlocking value through a planned demerger.
     In a letter to shareholders, Agarwal said Vedanta posted its highest-ever profit after tax of Rs 25,096 crore on revenue of Rs 1,74,075 crore, driven by operational gains across businesses.
     Total shareholder return was about 50 per cent, outperforming sector benchmarks, while the company paid a dividend of Rs 34 per share.
     Vedanta also strengthened its balance sheet, with net debt-to-EBITDA improving to 0.95x, positioning it for greater financial flexibility, the Vedanta chairman said.
     The company's demerger, effective May 1, will split Vedanta into multiple sector-focused entities, each with independent growth strategies and capital allocation.
     Agarwal said the move is designed to create "globally competitive" businesses with clearer strategic focus and scalability.
     "Your company, Vedanta, is embarking on a very exciting new chapter, where strong performance meets exceptional transformation," he said. "The stage is set for the next phase of growth and value creation."
     The demerger marks a structural shift aimed at creating independent, sector-focused businesses. "This transformation marks a pivotal step in unlocking value by creating focused, world-class companies… each with sharper strategic clarity and distinct growth pathways," he said.
     Post-demerger, Vedanta Aluminium aims to double capacity to 6 million tonnes per year, targeting cost leadership and growth tied to global demand in infrastructure and manufacturing.
     Vedanta oil & gas plans to scale production to 300,000-500,000 barrels per day with a USD 5-billion investment programme.
     Vedanta Power is targeting rapid expansion from 4.2 GW currently to a 12 GW pipeline, while also exploring hydropower and nuclear energy. Vedanta Iron & Steel plans to increase capacity from 4 million tonnes to 10 million tonnes, with further expansion potential supported by captive raw material resources.
     The parent entity will retain stakes in key assets including Hindustan Zinc Limited, along with international zinc operations, copper, nickel and ferro alloys businesses, Agarwal said.
     Vedanta invested about Rs 15,000 crore in growth capital expenditure during the year across aluminium, zinc, oil and gas, and emerging businesses.
     Looking ahead, Agarwal said the group will focus on scale, cost efficiency and disciplined capital allocation, while increasing the use of technology and artificial intelligence to drive productivity.
     "As we look ahead, our strategy is clear -- to build a structurally strong Vedanta Group for tomorrow," Agarwal said, adding that the company will focus on scale, cost leadership and disciplined capital allocation while leveraging technology and AI.
     "Hum aur aap badhenge, tabhi Bharat aage badhega. Jai Hind! (Only if you and we grow together will India move forward.)," he said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)