Vedanta Ltd, a major player in the mining and resources sector, is set to undergo a significant demerger on May 1, 2026, to address its mounting debt issues. This restructuring will create five separate entities: Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas, Vedanta Iron & Steel, and a residual Vedanta Ltd. Analysts, including Netra Deshpande from Mirae Asset Sharekhan, believe this split will enhance balance sheet visibility and allow for better capital allocation by distributing debt among the new firms. Currently, Vedanta Ltd's consolidated net debt stands at ₹53,400 crore (approximately $6.4 billion USD), with expectations that it could decrease to ₹24,500 crore (around $3 billion USD) by FY28. This reduction is attributed to improved cash flows and lower dividend payouts. The demerger also aims to unlock value by creating focused, sector-specific businesses that can attract different investor bases. However, the power segment remains a concern due to its high leverage ratio of 4.7x net debt-to-Ebitda, which analysts will closely monitor as the company transitions into its next phase.