Vedanta Group Reports Record Earnings and Announces Strategic Demerger Plans
As Vedanta Group posts record FY26 earnings, Chairman Anil Agarwal lays out vision for a ‘very exciting new chapter’
MintImage: Mint
Vedanta Group achieved a record profit after tax of ₹25,096 crore on revenue of ₹1,74,075 crore for FY26. Chairman Anil Agarwal announced a strategic demerger set for May 1, aimed at creating sector-focused entities to enhance growth and operational efficiency.
- 01Vedanta Group reported a record profit after tax of ₹25,096 crore for FY26.
- 02The company plans to undergo a demerger effective May 1, creating multiple sector-focused entities.
- 03Vedanta aims to double its aluminium production capacity to 6 million tonnes per year.
- 04The oil & gas sector plans to scale production to 300,000-500,000 barrels per day with a $5 billion investment.
- 05Vedanta's total shareholder return was about 50%, with a dividend of ₹34 per share.
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Vedanta Group, led by Chairman Anil Agarwal, announced its highest-ever profit after tax of ₹25,096 crore on revenue of ₹1,74,075 crore for FY26, marking a significant financial milestone. The company is set to undergo a strategic demerger on May 1, which will separate it into multiple sector-focused entities, each with distinct growth strategies and capital allocation. This restructuring aims to unlock value and create businesses that are globally competitive. Agarwal emphasized that the demerger will enhance strategic clarity and scalability, allowing for targeted growth in various sectors. For instance, Vedanta Aluminium plans to double its capacity to 6 million tonnes per year, while the oil and gas division aims for production of 300,000-500,000 barrels per day, backed by a $5 billion investment program. Additionally, Vedanta Power is looking to expand its capacity from 4.2 GW to 12 GW, exploring opportunities in hydropower and nuclear energy. The parent company will retain stakes in key assets, including Hindustan Zinc Limited and international operations in zinc, copper, nickel, and ferro alloys. Agarwal concluded with a commitment to building a structurally strong Vedanta Group focused on scale, cost leadership, and disciplined capital allocation.
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The restructuring and growth plans could lead to increased job opportunities in various sectors, as Vedanta expands its production capacities and invests in new projects.
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