Vedanta receives SEBI warning over scheme modification

Mining giant Vedanta Limited has been cautioned by the Securities and Exchange Board of India (SEBI) for modifying its Scheme of Arrangement without prior approval. The notification, dated August 13, 2025, was acknowledged by the company on August 14. SEBI's letter addressed the withdrawal of Part V of the Scheme that was filed with stock exchanges without the regulator's consent.

In response, SEBI has advised Vedanta to exercise greater diligence in future dealings and to forward the Board’s comments to SEBI after implementing corrective measures to ensure compliance. Vedanta clarified that the warning is advisory and does not impose any financial or operational constraints on the company.

Vedanta's financial performance for the first quarter shows mixed results. The company's net profit declined by 12% to ₹3,185 crore compared to the previous year, while revenue increased by 5.8% to ₹37,824 crore from ₹35,764 crore. The Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) remained stable at ₹9,918 crore, though the EBITDA margin shrank by 160 basis points to 26.2% from 27.8% a year earlier. Vedanta's net-debt to EBITDA ratio was recorded at 1.3 times, with its Lanjigarh refinery achieving its highest-ever alumina production at 587 kt, marking a 9% year-on-year growth.

Vedanta's stock closed at ₹430.25 on the BSE on Thursday, marking a 1.89% decrease. The company confirmed that the SEBI warning will not have a material impact on its financials or the modified scheme.

Despite the current regulatory issue, Vedanta continues to focus on operational improvements, as seen in the quarterly results.