Vedanta Shares Plunge 11% Amid Report on BALCO Dispute

Introduction

Shares of Vedanta Ltd experienced a significant decline on Friday, January 30, 2026, closing 10.89% lower at Rs 682.70 on the BSE. The sharp sell-off was triggered by a media report concerning a long-standing legal matter involving the company's subsidiary, BALCO. In response to queries from stock exchanges, Vedanta swiftly refuted the report, clarifying the nature of the legal proceedings and stating that no new material information was pending disclosure.

The Catalyst for the Decline

The sharp drop in Vedanta's stock price followed a media publication titled "Vedanta moves HC over 2011 arbitral award declaring Balco shares transfer as void." This report prompted both the BSE and NSE to seek immediate clarification from the mining conglomerate, as investors reacted to the potentially adverse news. The market response was immediate, with the stock opening lower and continuing to slide throughout the trading session, reflecting concerns over the legal implications mentioned in the report.

Vedanta's Official Clarification

In a formal response to the stock exchanges, Vedanta Ltd categorically denied the claims made in the media report. The company stated, "We wish to clarify that the news report is incorrect. There is no arbitral award declaring any BALCO share transfer as void." Vedanta explained that the matter pertains to a long-standing dispute with the Government of India regarding a 'call option' under a Shareholders' Agreement. The company emphasized that this issue has been consistently disclosed in the Notes to Accounts within its Annual Reports.

Vedanta further assured stakeholders that its approach to the Delhi High Court was part of the normal course of legal proceedings and did not represent a new, material development that would require a separate disclosure. "As on date, there is no information or announcement pending to be disclosed by the Company to the stock exchange(s) which may have a bearing on the price or volume behaviour of the scrip," the company concluded.

Strong Financial Performance in Q3

Contrasting with the day's stock performance, Vedanta's recent financial results painted a robust picture. For the third quarter of fiscal year 2025, the company reported a 60% year-on-year (YoY) jump in consolidated net profit, which stood at Rs 7,807 crore compared to Rs 4,876 crore in the same period last year. Revenue from operations also saw a healthy increase of 19%, rising to Rs 45,899 crore from Rs 38,742 crore in the corresponding quarter of the previous year. This strong operational performance highlights the company's solid fundamentals despite the market volatility.

Market and Stock Performance Data

The stock's performance on January 30 reflected significant investor anxiety. Here is a summary of its recent returns and key price levels from the day's trading session.

Analyst Commentary and Technical Outlook

Brokerages and technical analysts offered a mixed view on the stock following the day's events. Motilal Oswal Financial Services Ltd (MOFSL) maintained its 'Neutral' rating on Vedanta, setting a sum-of-the-parts (SoTP) based target price of Rs 810. The brokerage noted that the stock trades at 7 times its EV/EBITDA and 4.4 times its Price-to-Book value based on FY27 estimates.

From a technical standpoint, some analysts pointed to weakness on the charts. Ravi Singh, Chief Research Officer at Mastertrust, described the stock as bearish and suggested it could slip towards the Rs 650 level, with immediate resistance at Rs 720. Similarly, Jigar S Patel of Anand Rathi identified immediate support at Rs 670 and resistance at Rs 720, suggesting a short-term trading range between Rs 670 and Rs 740.

Conclusion

The sharp 11% fall in Vedanta's shares underscores the market's sensitivity to news concerning legal and regulatory matters. While the company's swift and clear refutation of the media report provided essential context, the event triggered significant profit-booking. Investors are now weighing the company's strong Q3 financial results and solid operational performance against the backdrop of ongoing legal processes and the cautious short-term technical outlook.