Vedanta share price: Citi ups target; what CLSA, Investec say on Q2 results, dividend, Jaiprakash Associates
Citi upped its target price to Rs 585 from Rs 580 earlier, while Investec reiterated its 'Buy' on Vedanta, saying the stock offers attractive dividend yields, and is a key beneficiary of forex and LME tailwinds.
- Nov 3, 2025,
- Updated Nov 3, 2025 9:03 AM IST
Vedanta has received thumbs up from metals & mining analysts post its September quarter results. Foreign brokerage CLSA maintained its 'Outperform' on Vedanta with a target price of Rs 580. Citi upped its target price to Rs 585 from Rs 580 earlier, while Investec reiterated its 'Buy' on Vedanta, saying the stock offers attractive dividend yields, and is a key beneficiary of forex and LME tailwinds.
Among domestic brokerages, ICICI Securities, which has a target of Rs 590 on the stock, said Vedanta is a prime beneficiary of the surge in commodity prices. Nuvama said Vedanta's December quarter Ebitda is likely to jump 20 per cent QoQ led by higher prices, volume and lower aluminium cost of production.
Citi said Vedanta’s Q2 Ebitda rose 16 per cent YoY or 15 per cent sequentially, and was 6 per cent ahead of its estimates. Sequential Ebitda increase is largely attributed to better commodity prices, volumes and forex; offset in part by higher costs. Citi said Vedanta's parent VRL's leverage is at comfortable levels. It cited a potential medium term aluminium LME upside, volume growth and likely lower costs, in addition to likely completion of the demerger process by FY26.
Vedanta is the highest bidder for Jaiprakash Associates and is keen on the power assets. At this point there are various uncertainties, but if the NCLT approves Vedanta’s resolution plan, it is likely to pay Rs 3,700 crore ($420m) upfront, and the balance Rs 12,400 crore ($1.4bn) over 5 years, Citi said.
"We think Vedanta will monetise some of the assets should they win; we are not worried around financial implications. We estimate dividend at Rs 40 per share in FY26. Target price raised to Rs 585 (vs Rs 500 earlier)," Citi said.
Investec said Vedanta delivered an operating beat, driven by Ally operations. Its project related (smelting, refining, power) commissioning is on track, but its raw-material projects continue to face delays. The management execution on VRL debt re-financing is noteworthy, implying a tapering yield ask into FY27/28, it said,
"We adjust our yield forecasts to reflect the higher of VRL’s pay-out ask or its stated pay-out policy. We now forecast 9 per cent/4 per cent dividend yield for FY26/27E. Vedanta retains its demerger timelines. The management didn’t adequately explain rationale for its JP bid. We see Vedanta's bid fructifying as a low probability event given the group’s limited exposure in non-power assets," Investec said.
ICICI Securities said aluminium division is expected to drive the majority of earnings aided by better volumes, lower costs and potentially better LME, it said.
"Power segment and zinc shall play a supporting role. However; JAL bidding would be a near-term overhang on the stock, as it may delay the deleverage process apart from impacting overall EBITDA. Given parent, VRL, has comfortable debt levels of $4.9 billion, dividend yield may now retreat to 5–6 per cent levels," ICICI Securities said.
Nuvama said Q3FY26 could witness NCLT’s approval, which would help to demerge businesses by end-Q4FY26E, unlocking value, it said. "Additional Rs 10–12 dividend per share is possible in H2FY26. Net debt/Ebitda ex-HZ shall fall to 2 times by end-FY26 (FY25:2.7x). A rollover to FY28E yields a revised target of Rs 686 (earlier Rs 601); maintain Buy," it said.
Vedanta has received thumbs up from metals & mining analysts post its September quarter results. Foreign brokerage CLSA maintained its 'Outperform' on Vedanta with a target price of Rs 580. Citi upped its target price to Rs 585 from Rs 580 earlier, while Investec reiterated its 'Buy' on Vedanta, saying the stock offers attractive dividend yields, and is a key beneficiary of forex and LME tailwinds.
Among domestic brokerages, ICICI Securities, which has a target of Rs 590 on the stock, said Vedanta is a prime beneficiary of the surge in commodity prices. Nuvama said Vedanta's December quarter Ebitda is likely to jump 20 per cent QoQ led by higher prices, volume and lower aluminium cost of production.
Citi said Vedanta’s Q2 Ebitda rose 16 per cent YoY or 15 per cent sequentially, and was 6 per cent ahead of its estimates. Sequential Ebitda increase is largely attributed to better commodity prices, volumes and forex; offset in part by higher costs. Citi said Vedanta's parent VRL's leverage is at comfortable levels. It cited a potential medium term aluminium LME upside, volume growth and likely lower costs, in addition to likely completion of the demerger process by FY26.
Vedanta is the highest bidder for Jaiprakash Associates and is keen on the power assets. At this point there are various uncertainties, but if the NCLT approves Vedanta’s resolution plan, it is likely to pay Rs 3,700 crore ($420m) upfront, and the balance Rs 12,400 crore ($1.4bn) over 5 years, Citi said.
"We think Vedanta will monetise some of the assets should they win; we are not worried around financial implications. We estimate dividend at Rs 40 per share in FY26. Target price raised to Rs 585 (vs Rs 500 earlier)," Citi said.
Investec said Vedanta delivered an operating beat, driven by Ally operations. Its project related (smelting, refining, power) commissioning is on track, but its raw-material projects continue to face delays. The management execution on VRL debt re-financing is noteworthy, implying a tapering yield ask into FY27/28, it said,
"We adjust our yield forecasts to reflect the higher of VRL’s pay-out ask or its stated pay-out policy. We now forecast 9 per cent/4 per cent dividend yield for FY26/27E. Vedanta retains its demerger timelines. The management didn’t adequately explain rationale for its JP bid. We see Vedanta's bid fructifying as a low probability event given the group’s limited exposure in non-power assets," Investec said.
ICICI Securities said aluminium division is expected to drive the majority of earnings aided by better volumes, lower costs and potentially better LME, it said.
"Power segment and zinc shall play a supporting role. However; JAL bidding would be a near-term overhang on the stock, as it may delay the deleverage process apart from impacting overall EBITDA. Given parent, VRL, has comfortable debt levels of $4.9 billion, dividend yield may now retreat to 5–6 per cent levels," ICICI Securities said.
Nuvama said Q3FY26 could witness NCLT’s approval, which would help to demerge businesses by end-Q4FY26E, unlocking value, it said. "Additional Rs 10–12 dividend per share is possible in H2FY26. Net debt/Ebitda ex-HZ shall fall to 2 times by end-FY26 (FY25:2.7x). A rollover to FY28E yields a revised target of Rs 686 (earlier Rs 601); maintain Buy," it said.