Vedanta demerger: 4-way split gets 99.5% support

What Vedanta told shareholders

Vedanta Ltd’s demerger and broader restructuring plan moved back into focus after chairman Anil Agarwal shared updates across shareholder communications, including post-results commentary and the annual report. Agarwal described the company as entering a new phase where operating performance and structural change are progressing together. He positioned the exercise as a shift toward a pure-play model, aimed at creating more focused businesses with their own capital allocation priorities.

Agarwal said the transformation is intended to “unlock value by creating focused, world-class companies, each with sharper strategic clarity, disciplined capital allocation and distinct growth pathways.” The company has communicated that the demerger proposal has already received overwhelming approval from shareholders and creditors, and that the process is now moving toward final clearances.

FY26: Record profit and revenue cited in the letter

In a letter to shareholders following the FY26 earnings on Tuesday, Agarwal said the last fiscal was Vedanta’s best-ever in financial performance. He reported the highest-ever profit after tax (PAT) of ₹25,096 crore and revenue of ₹174,075 crore. He linked the outcome to “operational excellence across businesses.”

Vedanta’s FY26 numbers were presented alongside the demerger narrative, with the chairman framing the restructuring as a step that follows from the company’s recent operating momentum. The message to investors was that the group is trying to match record performance with a new corporate structure.

FY25 references: TSR, revenue and EBITDA highlights

At Vedanta’s 60th Annual General Meeting (AGM), Agarwal said the company emerged as the top wealth creator among Nifty 100 companies, delivering total shareholder returns (TSR) of 87% for FY25. He also said Vedanta delivered its highest-ever revenue of ₹150,000 crore in FY25 and the second-highest EBITDA of more than ₹40,000 crore.

In the same AGM-related updates, Agarwal reiterated that the group is moving forward to “unlock maximum value for investors” through the reorganisation. He also highlighted deleveraging as part of what he called a “3D strategy” of Demerge, Diversify and Deleverage.

The demerger structure: four independent companies

As communicated by Agarwal, the restructuring is intended to split the business into four independent companies aligned to key operating verticals: aluminium, oil and gas, power, and base metals. In the shareholder communication, he said that once implemented, for every share held in Vedanta Ltd, each shareholder will receive one share in each of the four demerged companies.

Agarwal also said each of these businesses has the potential to grow into a $100 billion enterprise, framing the split as a way to create sharper focus and attract investors aligned to each business line. Separately, a news update around the AGM said the demerger is progressing steadily and is on track for completion by September.

Shareholder vote and approvals: what is confirmed

Vedanta’s chairman said the demerger proposal has received support from over 99.5% of shareholders and creditors. He described this as a strong vote of confidence and added that the process may get the required approvals shortly.

While the company has indicated timing expectations, the only confirmed milestones in these updates are the vote outcome, the proposed share entitlement mechanics, and the stated expectation that approvals could come “shortly.” Investors should therefore separate what has already happened (the vote) from what is pending (final approvals and implementation).

Key figures and disclosures at a glance

‘Vedanta 2.0’: focus on critical minerals and transition metals

In the group’s annual report communication, Agarwal described a transformation roadmap under the label “Vedanta 2.0.” He said Vedanta is positioning itself as a global leader in transition metals, critical minerals, energy, and technology. The same narrative linked the demerger to strategic realignment, vertical integration, and the company’s role in India’s infrastructure buildout and energy transition.

Agarwal also stated that Vedanta’s portfolio spans 15 major commodities, oil and gas, and renewable energy, and argued that these are linked to India’s growth as well as the global push toward a low-carbon future.

Sector context: growth rates and India’s exploration gap

Agarwal argued that demand for critical minerals and transition metals is rising, and cited growth rates for key metals: aluminium at 12%, copper at 15%, and zinc at an average of 10%. He also said less than 20% of India’s mineral resources potential has been explored.

In a separate shareholder letter, he said Vedanta currently contributes close to 1.4% of India’s GDP, and added that the broader sector contributes close to 3% of GDP. He said the sector’s opportunity is large given demand growth and the exploration gap.

Industrial parks and downstream jobs: what was mentioned

Agarwal said Vedanta is establishing an industrial Zinc Park and an Aluminium Park, which he said would support thousands of upstream and downstream industries. In the same set of communications, he also linked the demerger to the creation of downstream industries and “a huge number of new jobs,” while emphasising that the new entities would have independent and empowered management and distinct capital structures.

These claims were presented as part of the broader rationale for a pure-play structure, where each unit can pursue its own growth pathway, partnerships, and capital plans.

Agarwal’s philanthropy and promoter role comments

Outside the demerger discussion, Agarwal said he has committed to donating 75% of his wealth to society. In a social media post, he wrote that he would cease to be a promoter and would work as a trustee. He also said his next wide-scale philanthropic initiative is aimed at education and healthcare, and that he would like to put ₹10,000 crore to ₹15,000 crore toward such an effort.

Agarwal said the meeting where he shared this was his first official meeting after a tragedy in his family, and that Prime Minister Narendra Modi expressed condolences. He also said he was supportive of the Prime Minister’s call to save forex.

Market impact: what investors are likely to track

For shareholders, the key market-sensitive elements in Vedanta’s updates are the demerger mechanics and the timing. The company has stated that investors would receive one share in each of the four demerged companies for every Vedanta Ltd share held, subject to completion. Investors will also watch for the “required approvals” that Agarwal said may come shortly, and for clarity around the September completion target mentioned in AGM-related communication.

On fundamentals, the record FY26 PAT of ₹25,096 crore and revenue of ₹174,075 crore, alongside FY25 TSR of 87%, provide the financial context management is using to argue that the group is executing strongly while reshaping itself. Any further announcements on approvals, record dates, and listing-related details would be the next concrete triggers.

Conclusion

Vedanta’s chairman has positioned the company’s demerger as a pivot toward pure-play businesses, backed by a 99.5% approval vote and accompanied by record FY26 profit and revenue disclosures. The next steps, as communicated, are final approvals and implementation, with the company indicating the process is nearing completion and is targeted to wrap up by September.