The international brokerage cited a more constructive outlook for aluminium prices, supportive silver prices and an attractive dividend yield of over 6% estimated for FY27. It also highlighted that significant deleveraging at the parent level reduces the risk of any increase in brand-fee rates or inter-corporate loans.
BofA has raised its FY26E–FY28E EBITDA estimates for Vedanta by 16–21%, factoring in higher aluminium price assumptions, an increased fair value for Hindustan Zinc, depreciation in the USD-INR rate and a lower holding-company discount of 5%, compared with 15% earlier.
Vedanta Q3 snapshot
Vedanta reported a 61% year-on-year jump in consolidated profit to Rs 5,710 crore for the third quarter, with revenue rising 19% to Rs 45,899 crore. EBITDA climbed 34% year-on-year and 31% sequentially to a record Rs 15,171 crore, while margins expanded sharply to 41%, supported by higher metal prices, stronger premiums, improved volumes and cost efficiencies.
The aluminium business stood out operationally, with alumina production rising 57% year-on-year to a record 794 kilo tonnes, while aluminium cost of production declined 11% year-on-year to $1,674 per tonne, aiding margin expansion. Zinc India and international zinc operations also delivered strong growth on the back of favourable commodity prices and improved volumes.The stronger operating performance translated into better capital efficiency, with return on capital employed improving to 27%, up nearly 300 basis points from a year ago.
Vedanta share price performance
Vedanta share price has been off to a strong start in 2026, rallying 20% on a year-to-date basis. The stock is up 60% in the last six months.
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