Vedanta Announces ₹11 Interim Dividend; Record Date Set for March 28

Introduction to Vedanta's Dividend Announcement

Vedanta Ltd, a major player in the metals and mining industry, announced its third interim dividend for the financial year 2025-26. The company's board of directors approved a dividend of ₹11 per equity share on March 23, 2026. This move will result in a significant cash outflow of approximately ₹4,300 crore, reinforcing the company's reputation as a high-dividend-paying stock on the Indian exchanges. The announcement was made after a board meeting, and the details were promptly communicated to the stock exchanges.

Key Dividend Details and Dates

For investors to be eligible for this dividend payout, they must hold Vedanta shares in their demat account before the ex-dividend date. The company has fixed Saturday, March 28, 2026, as the record date to identify eligible shareholders. Since the record date falls on a market holiday, the stock will trade ex-dividend on the preceding trading day, which is Friday, March 27, 2026. This means investors must purchase the shares on or before March 26 to receive the dividend. The dividend amount will be paid to eligible shareholders within the timelines stipulated by law.

Total Dividend Payout for FY26

This is the third dividend declaration from Vedanta in the current fiscal year. The company previously paid a first interim dividend of ₹7 per share in June 2025 and a second interim dividend of ₹16 per share in August 2025. With the latest announcement of ₹11 per share, the total dividend payout for FY26 now stands at ₹34 per share. This consistent dividend history contributes to its current dividend yield of approximately 3.56%, making it an attractive option for income-focused investors.

Stock Market Reaction

Vedanta's stock experienced volatility following the dividend announcement. In the opening session on March 24, the share price climbed nearly 3% to an intraday high of ₹663.50 on the BSE. However, the stock could not sustain these gains and closed lower on March 23 at ₹645.75 per share, down by about 4%, influenced by broader market weakness. At the time of writing, the stock was trading around ₹650 apiece, with a market capitalization of over ₹2,54,000 crore.

Analyst Recommendations and Target Price

Brokerage firms and analysts remain largely positive on Vedanta's future prospects. Global brokerage CLSA has maintained an 'Accumulate' rating on the stock, setting a target price of ₹835. Their valuation is based on the implied worth of Vedanta's individual businesses as the company moves closer to its planned demerger. More recently, BofA Securities upgraded its rating on Vedanta from 'Neutral' to 'Buy' and raised its target price to ₹840. The consensus recommendation from 13 analysts is a 'BUY', with an average one-year target price of ₹808.77.

Update on Corporate Demerger

Vedanta is proceeding with a significant corporate restructuring through a demerger. The plan involves splitting the conglomerate into five separate listed companies: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel, and Vedanta Ltd. The existing Vedanta Ltd will continue to hold the company's stake in Hindustan Zinc. This strategic move is designed to unlock value by allowing each business to operate with a focused strategy, dedicated management, and an independent capital structure. Upon completion of the demerger, existing shareholders will receive one share of each of the four newly listed entities for every one share they hold in Vedanta Limited.

Financial Performance Overview

The company's decision to distribute a substantial dividend is supported by its strong financial performance. In the third quarter of FY26 (October-December 2025), Vedanta reported a robust 61% year-on-year increase in consolidated net profit, reaching ₹5,710 crore. The company also achieved its highest-ever quarterly EBITDA of ₹15,171 crore, driven by strong operational performance, particularly in its aluminium business. This financial strength provides the foundation for rewarding shareholders while continuing to invest in growth.

Conclusion and Forward Outlook

Vedanta's declaration of a ₹11 interim dividend underscores its commitment to shareholder returns, backed by solid operational performance. While the stock showed some short-term volatility, the long-term outlook is supported by positive analyst ratings and the strategic demerger aimed at value creation. Investors will be closely watching the execution of this demerger, which is expected to provide greater clarity and focus for each of its core business segments.