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Shares of Vedanta Ltd jumped more than 3% in early trade on Monday, hitting an intraday high of Rs. 509.35 per share on the BSE following the metals and mining company’s Q2FY26 results. While profit was affected due to one-off losses, the analysts continue to hold a positive view on the stock.
Vedanta’s consolidated net profit declined 58.7% YoY to Rs. 1,798 crore, compared with Rs. 4,352 crore in the same quarter last year.
The fall was driven by a net exceptional loss of Rs. 2,067 crore, which included a Rs. 1,407 crore write-off at its Talwandi Sabo Power subsidiary following a Supreme Court ruling, and a Rs. 660 crore settlement payment to SEPCO Electric Power Construction Corporation.
The company stated a record quarterly revenue of Rs. 39,868 crore, representing a YoY growth of 5.9%. EBITDA was up 12% YoY to Rs. 11,612 crore, and margin increased 69 bps YoY to 34%, supported by strong performance in aluminium and zinc operations.
Brokerages remained broadly optimistic about Vedanta’s operational trajectory. Emkay Global highlighted that the results were “steady,” supported by strong aluminium production and disciplined cost management. The firm raised its target price to Rs. 625 per share from Rs. 550 and maintained a ‘Buy’ rating.
Motilal Oswal Financial Services noted that Vedanta’s Q2 performance exceeded expectations, primarily driven by its aluminium segment. It raised FY26 revenue, EBITDA, and PAT estimates by 4%, 2%, and 4%, respectively, while retaining a ‘Neutral’ stance with a SoTP-based target of Rs. 550.
Nuvama projected a 20% sequential EBITDA jump in Q3FY26, supported by higher commodity prices and declining aluminium costs.
Investec highlighted Vedanta’s progress on debt refinancing at the parent level (Vedanta Resources Ltd) and said the company’s demerger efforts are “well on track,” which should unlock value in the medium term.
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Vedanta shares have gained 8% in one month, 20% in three months, and 15% year-to-date, while doubling investor wealth over the past two years with a 118% gain. Over five years, the stock has delivered returns of 435%.
Analysts believe Vedanta is ready to profit from higher commodity prices and cost efficiencies throughout its segments. However, they believe valuation remains a near-term risk, with shares priced at 5.77x EV/EBITDA and 3.4x P/BV, based on FY27 estimates.
The majority of brokerages maintain a ‘Buy for Long Term’ view, citing Vedanta’s robust fundamentals, improving margins, and the possibility of value unlocking from demerger and deleveraging.
