Vedanta shares jump 5% as BofA lifts target to ₹840

Vedanta Ltd shares rose sharply in Wednesday’s session after BofA Securities upgraded the stock to ‘Buy’ from ‘Neutral’ and lifted its target price to ₹840 from ₹480. On the BSE, the stock rallied as much as 5% to an intraday high of ₹727.40.

The upgrade landed amid a broader positive tone in metals and a run-up in Vedanta’s own price performance. The stock has been strong in 2026 so far, with the company also reporting a robust set of Q3 results that included record quarterly EBITDA.

What changed in BofA’s view

BofA said its outlook turned more constructive on aluminium prices and pointed to supportive silver prices. It also highlighted Vedanta’s dividend profile, flagging an attractive dividend yield of over 6% estimated for FY27.

A key risk factor that BofA addressed was parent-level leverage. The brokerage noted that significant deleveraging at the parent level reduces the risk of an increase in brand-fee rates or inter-corporate loans. That framing matters for investors who track cash flows and related-party exposures in group structures.

Target price raised 75%: the building blocks

The move from ₹480 to ₹840 represents a 75% increase in BofA’s target price. Alongside the upgrade, the brokerage raised its FY26E to FY28E EBITDA estimates for Vedanta by 16% to 21%.

BofA said these estimate changes factor in higher aluminium price assumptions, a higher fair value for Hindustan Zinc, depreciation in the USD-INR rate, and a lower holding-company discount of 5% compared with 15% earlier.

Q3 performance snapshot: profit, revenue and record EBITDA

Vedanta reported a 61% year-on-year increase in consolidated profit to ₹5,710 crore for the third quarter. Revenue rose 19% year-on-year to ₹45,899 crore.

EBITDA climbed 34% year-on-year and 31% sequentially to a record ₹15,171 crore. The company reported margin expansion to 41%, supported by higher metal prices, stronger premiums, improved volumes, and cost efficiencies.

The company also reported improved capital efficiency, with return on capital employed (ROCE) at 27%, up nearly 300 basis points from a year ago.

Stock price action and return profile

Vedanta’s shorter-term and longer-term returns have been strong, based on the latest return snapshot provided. The stock’s trading range also remains wide, with both intraday and 52-week levels in focus for traders.

Return snapshot

Technical and seasonal signals investors are tracking

A weekly stochastic crossover appeared on the week ending April 10, 2026, flagged as a bullish signal on the weekly chart in the equilibrium region. The dataset cited an average price gain of 8.31% within seven weeks of this signal over the last 10 years.

Separately, the seasonality readout noted that in 12 out of 18 years, Vedanta has delivered positive returns in April. Such seasonality metrics are descriptive rather than predictive, but they often shape near-term positioning when aligned with broader sector momentum.

The article dataset also flagged a quarterly trend point: Vedanta witnessed a QoQ revenue decline of 41.03%, described as the lowest in the last three years (Source: Consolidated Financials).

Key trading and valuation metrics in focus

The latest snapshot includes intraday price levels, circuits, and commonly tracked valuation ratios.

Corporate structure catalyst: NCLT nod for scheme and demerger plan

The stock’s recent momentum has also been linked to regulatory progress around corporate restructuring. The National Company Law Tribunal (NCLT), Mumbai Bench, approved a Scheme of Arrangement involving Vedanta Ltd and Talwandi Sabo Power Ltd (TSPL), along with Vedanta Aluminium Metal Ltd, Malco Energy Ltd, and Vedanta Iron and Steel Ltd.

A separate update in the same information set said the NCLT approved a plan to split Vedanta into five different listed entities. It stated that after the demerger, the base metals business will be housed in Vedanta Ltd, while Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy will be the other four entities.

Market impact: why the upgrade matters now

Brokerage upgrades with large target revisions can change positioning quickly, especially in liquid large-caps. The BofA note tied its thesis to commodity inputs such as aluminium and silver, currency assumptions, and valuation mechanics like the holding-company discount.

The dividend angle has also been a visible part of the narrative. BofA’s reference to an estimated FY27 dividend yield of over 6% aligns with the stock’s reported dividend yield of 6.32% in the latest fundamentals snapshot.

What analysts and market watchers have said

Commentary in the provided material pointed to a supportive commodity backdrop. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, was quoted saying commodity markets are doing well and that, with the demerger approval backdrop, investors can hold Vedanta and consider buying on dips with a long-term perspective.

On the technical side, Angel One’s Osho Krishan said the stock has shown a sustained upward trajectory across multiple time frames and flagged the ₹600 zone as an intermediate support area, while also noting indicators suggesting overextension.

Conclusion

Vedanta’s latest move combines multiple drivers: a sharp BofA upgrade and target hike to ₹840, supportive commodity expectations, and company-reported operating strength in Q3 with record EBITDA of ₹15,171 crore. Alongside this, investors continue to track regulatory steps linked to the group’s proposed restructuring and the stock’s technical signals, including the weekly stochastic crossover noted for April 10, 2026.