Vedanta’s Transformation: Anil Agarwal Outlines Record Growth and Strategic Demerger

Hyderabad: In a landmark communication to shareholders, Vedanta Chairman Anil Agarwal has heralded a historic chapter for the company, characterized by record-breaking financial performance and a major structural transformation. FY26 stood out as a banner year for the group, with the company achieving its highest-ever profit after tax of ₹25,096 crore on revenues of ₹1,74,075 crore. This robust performance, supported by operational excellence, yielded a Total Shareholder Return (TSR) of nearly 50 percent, complemented by a dividend payout of ₹34 per share.

The cornerstone of Vedanta’s current trajectory is the strategic demerger, which became effective on May 1, 2026. This move is designed to unlock significant value by carving out the group’s diverse business units into focused, world-class entities. Each entity is now positioned to operate with greater strategic clarity, disciplined capital allocation, and independent growth pathways.

The newly independent units are set for aggressive expansion across key industrial sectors:

Vedanta Aluminium: Aiming to double capacity to 60 lakh tonnes per annum, the company remains focused on maintaining its position as one of the world’s lowest-cost producers while serving global demand in infrastructure and advanced manufacturing.

Vedanta Oil & Gas: As India’s leading private sector upstream player, the division plans a $5 billion investment to scale production to between 300,000 and 500,000 barrels per day.

Vedanta Power: Transitioning into one of India’s top three power companies, this unit is scaling its 4.2 GW capacity with a 12 GW pipeline that includes a pivot toward clean-energy sources like hydropower and nuclear energy.

Vedanta Iron & Steel: With a focus on green and specialty steel, the company is leveraging its captive mines in Goa, Odisha, and Karnataka to scale production from 40 lakh tonnes to 150 lakh tonnes per year.

The flagship Vedanta Ltd. will maintain its strategic hold on critical mineral-focused assets, including a 60 percent stake in Hindustan Zinc, as well as significant copper, nickel, and ferro-alloy operations essential for India’s self-reliance. With ₹15,000 crore deployed in growth capital expenditure, the company is heavily investing in capacity building and AI-driven innovations. Chairman Agarwal emphasized that this transformation is fundamentally about building a structurally resilient, sustainable, and technology-forward group that contributes to India’s long-term national progress.