Vedanta shares rally 13% as silver drives FY26

Metal stocks rise after import duty hike

Shares of Vedanta Ltd extended gains for a fourth straight session on Thursday, May 14, tracking a broader rally across metal counters. The move followed the government’s decision to increase import duties on gold and silver to 15% from 6%. The stated intent of the duty hike was to curb overseas purchases of precious metals and ease pressure on India’s foreign exchange reserves. After the announcement, metal stocks moved up across the board, and the positive tone continued into the latest session.

What happened to Vedanta’s share price on May 14

Vedanta touched a 52-week high of Rs 336 on the BSE in early Thursday trade, rising as much as 4% in the morning session. The stock carried forward momentum from the previous session, when it settled nearly 6% higher at Rs 323.10 per share. Over the last four trading sessions, Vedanta has rallied by more than 13%, reflecting a combination of sector strength and company-specific optimism.

Why silver is in focus for Vedanta

In its Q4 FY26 investor presentation filed with exchanges, Vedanta reported full-year saleable silver production of 627 metric tonnes (MT). The company also highlighted that silver contributed 45% to overall profitability, underlining why the market has been sensitive to moves linked to precious metals. For the March quarter alone, silver production increased 11% sequentially to 176 MT, a data point investors tracked alongside the broader import-duty-led sentiment.

Hindustan Zinc’s record quarterly production

The exchange filing also pointed to operational milestones at Hindustan Zinc, a key Vedanta arm. Hindustan Zinc recorded its highest-ever quarterly mined metal production of 315 kt and refined metal production of 282 kt. These figures were presented as quarterly records, reinforcing the contribution of the zinc business to consolidated performance at a time when metal prices and policy actions are moving markets.

Aluminium volumes hit an annual record

Vedanta said its aluminium business delivered its highest-ever annual aluminium production of 2,456 KT, up 1% year-on-year. The company also said it compressed its cost of production to five-year lows across both its aluminium and zinc segments. While the filing did not provide the cost numbers, the “five-year lows” comment adds context to why operational efficiency has remained part of the stock narrative.

Demerger developments remain a recurring catalyst

Separately, Vedanta shares hit an all-time high of ₹794.90, gaining 3% on the BSE in Tuesday’s intra-day trade after the company fixed May 1, 2026 as the record date for its demerger. The stock surpassed its previous high of ₹791 touched on April 17, 2026. In April, the stock price was up 21% for the month at the time of the report, and in calendar year 2026 it was up 30%, compared with a 7.4% decline in the BSE Sensex and a 15% rise in the BSE Metal index. The report also noted that over the past 31 months since the demerger announcement, Vedanta’s stock has gained 227%.

Sector backdrop: aluminium prices and non-ferrous momentum

The non-ferrous metals space has also been supportive in phases. One report noted aluminium prices were up 7.8% over the past two weeks and up 22% year-to-date in CY26. In late January 2026, Vedanta’s up-move was also described as aligning with sector strength, including a day when the non-ferrous metals sector rose 2.34%.

Fundamentals, valuations, and a key risk investors track

Reports cited Vedanta’s Return on Capital Employed (ROCE) at 31.42% and a Debt to EBITDA ratio of 1.20 times. Operating cash flow was reported at Rs 39,562 crore, and profit after tax growth was cited at 22.92% year-on-year for the first nine months. At the same time, a key risk highlighted was promoter share pledging of 99.99%, which can amplify pressure during adverse market conditions. Separately, a brokerage upgrade from Nuvama Institutional Equities was referenced, with a revised target price of Rs 806 from Rs 686.

Key data points at a glance

Timeline: highs and restructuring milestones

Market impact: what changed and why it mattered

The duty hike on gold and silver altered near-term positioning across metal counters, with investors reacting to the policy’s intent to curb imports and reduce pressure on foreign exchange reserves. For Vedanta, silver’s disclosed contribution to profitability and the quarter-on-quarter rise in production provided a direct link between the policy headline and company fundamentals. Operational records in zinc and aluminium added a second leg to the narrative, reinforcing that the move was not solely sentiment-driven. Meanwhile, restructuring-related milestones, including the May 1, 2026 record date for the demerger, remained an ongoing factor supporting interest in the stock.

Analysis: how to read the rally using disclosed numbers

The latest filings and reported metrics place silver at the centre of Vedanta’s profitability mix, with 45% contribution cited alongside FY26 saleable production of 627 MT. That data makes silver-linked news flow more relevant for the stock than it may be for more single-commodity peers. At the same time, record mined and refined output at Hindustan Zinc and record annual aluminium production support the case that volumes have remained strong across core segments. The counterbalance, based on the same set of reports, is the risk flagged around 99.99% promoter pledging, which investors often monitor closely during periods of higher volatility.

Conclusion

Vedanta’s recent up-move combined a sector-wide reaction to higher precious metal import duties with company filings that emphasised silver’s profitability contribution and record production milestones in zinc and aluminium. The demerger timeline, with May 1, 2026 set as record date and restructuring approvals already referenced in reports, remains a key event thread investors are tracking alongside commodity-price moves and quarterly updates.