Image Source: Mint
Vedanta Ltd, the metals and mining heavyweight led by Anil Agarwal, has announced its second interim dividend for FY26, reinforcing its reputation as one of India’s most generous dividend-paying companies. The board approved a payout of ₹16 per equity share, translating to a total disbursement of ₹6,256 crore. The announcement, made after market hours on August 21, 2025, comes amid ongoing corporate restructuring and regulatory scrutiny, yet signals continued shareholder commitment.
Key Highlights
Second interim dividend of ₹16 per share approved for FY26
Total payout amounts to ₹6,256 crore
Record date set as August 27, 2025
Dividend yield remains strong at 8 percent
Vedanta has paid ₹35.5 per share in dividends over the past 12 months
Dividend History and Shareholder Returns
Vedanta’s dividend strategy has been consistent and aggressive:
First interim dividend for FY26 was ₹7 per share, announced in June 2025
FY25 saw total dividends of ₹43.5 per share, amounting to ₹17,000 crore
FY24 dividends totaled ₹29.5 per share, worth ₹10,959 crore
FY23 set a record with ₹101.5 per share, aggregating ₹37,572 crore
This latest ₹16 dividend reinforces Vedanta’s position as a top dividend-yielding stock in India, offering steady returns even amid sectoral volatility.
Financial Performance Snapshot
Vedanta’s Q1 FY26 results showed mixed performance:
Consolidated net profit declined 11.7 percent year-on-year to ₹3,185 crore
Revenue from operations rose 5.8 percent to ₹37,824 crore
EBITDA remained flat at ₹9,918 crore, with margins narrowing to 26.2 percent from 27.8 percent
Total income grew 5.7 percent year-on-year to ₹38,809 crore
Despite pressure from lower aluminium and copper prices, Vedanta’s domestic demand remained robust, supporting topline growth.
Market Reaction and Stock Movement
Following the dividend announcement:
Vedanta shares closed at ₹447.10 on NSE, up ₹1.60 or 0.36 percent
The stock has gained 2.5 percent intraday and 5.73 percent over the past six months
Brokerages remain bullish, with Systematix maintaining a buy rating and revising its target price to ₹510 per share
The dividend news has helped stabilize investor sentiment amid broader concerns over Vedanta’s restructuring plans.
Corporate Restructuring and Regulatory Challenges
Vedanta’s proposed demerger has hit roadblocks:
The National Company Law Tribunal (NCLT) deferred its hearing to September 17, citing serious objections from the Centre
The Ministry of Petroleum and Natural Gas raised concerns over revenue inflation and under-reporting of liabilities
SEBI issued a warning letter after Vedanta altered its demerger scheme post-approval, calling it a breach of regulatory trust
The Supreme Court dismissed Vedanta’s plea for additional compensation in the Talwandi Sabo Power project, closing the door on deemed export benefits
These developments have cast a shadow over Vedanta’s corporate governance and restructuring ambitions, though the dividend payout may help offset investor unease.
Strategic Outlook
Vedanta continues to invest aggressively in capex and deleveraging:
USD 5.6 billion spent out of the approved USD 9.4 billion capex plan
Operational guidance and commodity price revisions have led to modest EBITDA estimate cuts for FY26 and FY27
Analysts expect revenue, EBITDA, and PAT CAGR of 6 percent, 14 percent, and 25 percent respectively over FY25–FY27
The company’s focus remains on growth, shareholder returns, and navigating regulatory hurdles with strategic clarity.
Conclusion
Vedanta’s ₹16 per share dividend is a bold reaffirmation of its shareholder-first philosophy, even as it grapples with legal and regulatory headwinds. With a strong dividend yield, resilient financials, and ambitious capex plans, the company continues to be a focal point for investors seeking value in India’s metals and mining sector.
Sources: Economic Times, Business Today
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