Vedanta shares jump 85% in a year as demerger nears

What is driving the move in Vedanta stock

Vedanta Ltd’s share price has nearly doubled over the last year, supported by investor optimism around its planned demerger and a steady set of operational and earnings updates. Stock exchange data shows the stock gained 84.5% between April 30, 2025 and April 29, 2026, sharply outperforming the BSE Sensex, which declined more than 3% in the same period. Over the rally, the stock hit a 52-week high of ₹794.90. The move also lifted Vedanta’s market capitalisation, with one report saying it rose by ₹1.38 lakh crore on the BSE during the run-up.

Key stock price milestones and market comparisons

Ahead of the record date, Vedanta shares rose as much as 5% to ₹775.95 during intra-day trade, and were up 4.7% at ₹774 around 1:57 PM in that session. The broader market was also positive on the day, with the BSE Sensex up 1.2%. Sectorally, the BSE Metal Index gained 0.62% on the same day, while data in the reports said the metal index was up 48% over the past year. Trading activity also picked up, with a combined 30.18 million Vedanta shares changing hands on the NSE and BSE.

Demerger structure: five entities, four new listings

Vedanta’s board approved a demerger effective May 1, 2026, under which the business will be reorganised into five listed entities. The structure includes the existing listed Vedanta and four newly created companies: Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Limited (TSPL), Malco Energy Limited (MEL), and Vedanta Iron and Steel Limited (VISL). Vedanta has also said the demerger is aimed at simplifying the corporate structure into sector-focused independent businesses and creating direct investment options for a wider pool of investors, including sovereign wealth funds, retail investors, and strategic investors.

Record date, ex-date, and shareholder entitlement

Reports said May 1, 2026 is the record date for the demerger, and the stock turned ex-demerger on April 30 because May 1 is a market holiday. Under the scheme, shareholders with one Vedanta share will receive one share each in the four new entities in proportion to their existing holding. One report described this as “four additional shares” for every one Vedanta share held as of April 29, reflecting the four new listed businesses to be created alongside the residual Vedanta entity.

Residual Vedanta business after the split

As described in one brokerage note cited in the reports, the residual Vedanta entity will remain listed and will house key businesses including Zinc India (Hindustan Zinc), Zinc International, Copper, and ferro chrome, among others. The same note added that the residual Vedanta’s value would be driven largely by its stake in Hindustan Zinc. Separately, another report said Vedanta will transfer its shareholding in Bharat Aluminium Company Limited (BALCO) to VAML as part of the broader restructuring.

Timeline: filings, approvals, and expected listing window

Vedanta is expected to file with stock exchanges “next week” for listing approval of its demerged entities, according to a top company official cited in the reports. Shares of the demerged entities are expected to list and commence trading by mid-June. Another brokerage view in the coverage also suggested the demerged entities could be listed within 1-2 months following the record date, subject to approvals moving smoothly.

What brokerages are saying about valuation and the demerger

Emkay Global Financial Services called the demerger a meaningful value-unlocking trigger for shareholders. Emkay said the restructuring could drive upside through a potential valuation re-rating, because pure-play entities often command a premium versus diversified miners, and through improved capital allocation supported by focused management teams for each business.

ICICI Securities advised a “HOLD” and said Vedanta’s stock price was expected to adjust for the demerger and trade in the range of around ₹300-325 per share on April 30 versus a then market price of around ₹720 per share, while noting this estimate was indicative because debt allocation across the resulting entities was awaited. ICICI Securities also cited a revised sum-of-the-parts valuation of about ₹820 per share for all resulting entities combined. Axis Securities, in a separate comparison cited in the reports, valued Vedanta at about ₹572 per share pre-demerger and expected the combined post-demerger valuation to rise 14% to ₹650 per share.

Q4FY26 financial performance and what supported it

Vedanta reported a sharp year-on-year jump in consolidated profit after tax for the quarter ended March 2026. PTI reported an 89% rise in consolidated profit after tax to ₹9,352 crore versus ₹4,961 crore a year ago, citing higher sales volume, rising global metal prices, and the weakening rupee’s exchange rate. The company’s revenue from operations in the same quarter rose 29% to ₹51,524 crore from ₹39,789 crore a year ago.

A separate report in the provided text also referred to Vedanta’s Q4 results as “net profit rises to ₹6,698 cr on strong metal prices”, indicating differing figures across reports. Motilal Oswal Financial Services said Vedanta’s 4QFY26 performance was largely as expected, supported by better volumes and favourable LME prices.

Key figures at a glance

Why the demerger matters for investors

The coverage consistently frames the demerger as a way to reduce the “conglomerate discount” by allowing each business to be valued independently and benchmarked against sector peers. The shareholder entitlement is also central to investor focus because holders of Vedanta on the record date are set to receive shares in the four newly listed entities. At the same time, the stock’s strong one-year performance shows that much of the optimism has already been priced in, making post-demerger price adjustments and listing timelines key near-term variables.

Conclusion

Vedanta’s one-year rally has been driven by a combination of demerger-led expectations and reported strength in Q4FY26 performance, including higher revenue and a sharp rise in profit in at least one set of reported numbers. The next operational milestones are the company’s filings with stock exchanges for listing approvals and the expected listing and start of trading for the demerged entities by mid-June, as cited by a company official in the reports.