1:5 Split Likely In March 2026: Vedanta Resources' Outlook Upgraded By Moody's And S&P; Buy Vedanta Stock?

Metal giant Vedanta's stock price traded closer to its 52-week high on BSE during the December 9th trading session. The current sentiment is cautiously positive. However, the performance comes after global rating agencies like Moody's and S&P Global upgraded Vedanta's parent, Vedanta Resources' credit outlook to 'Positive.' As of now the consensus on Vedanta stock is buy. A total of 9 analysts have recommended either BUY or Strong BUY on Vedanta, which continues to be in focus for its upcoming demerger in the ratio of 5:1.

Vedanta Share Price:

At the time of writing, Vedanta stock traded at Rs 513.55 apiece on BSE, up by 0.34% with a market cap of Rs 200,817.98 crore. The stock is closer to its 52-week high of Rs 543 and has surged by nearly 42% from its 52-week low of Rs 362.20 apiece.

YTD, Vedanta stock is up by more than 15.5%.

Vedanta Resources Credit Outlook Upgrade:

Moody's and S&P Global have revised their credit outlook to positive on Vedanta Resources.

Moody's, in affirming the Company's 'B1' Corporate Family Rating and 'B2' rating on senior unsecured bonds, emphasised stronger earnings and cash flow driven by higher production, favourable commodity prices, and deeper vertical integration in aluminium. Moody's noted significant improvement in the Vedanta's credit metrics, particularly EBIT/interest coverage, owing to liability management and debt refinancing initiatives that have extended maturities and reduced funding costs to below 10% in FY2026 from 13% in the previous year.

The global rating agency believes Vedanta's earnings remain anchored in its zinc, aluminium, and oil & gas operations, with aluminium profitability set to benefit from increased captive alumina production and enhanced bauxite integration.

Meanwhile, S&P Global affirmed Vedanta Resources' foreign currency issuer credit rating of 'B+' and local currency issuer credit rating of 'B+'. The credit agency's revision follows its assessment that cost-reduction initiatives, favourable product prices, and the ongoing ramp-up of new capacity in the aluminium business will support earnings and cash flow.

Vedanta Demerger Split:

Vedanta has planned to split its businesses into five independent entities. One Vedanta will be split into five new entities; hence, the demerger ratio is 1:5. The five demerged companies would be.

1. Vedanta Aluminium: Aluminium business

2. Vedanta Oil & Gas: Upstream and oil assets

3. Vedanta Power: Power generation

4. Vedanta Iron & Steel: Ferrous portfolio

5. Vedanta Limited: This entity will hold Hindustan Zinc (zinc, silver) and act as an incubator for new verticals, including technology.

These entities will be listed on BSE and NSE.

As part of the demerger, eligible shareholders will get one additional share of each of the new entities for their 1 existing share in Vedanta. However, currently, Vedanta's demerger plans have been delayed, and the new effective date is expected to be March 2026. The delay is due to pending NCLT and government approvals along with regulatory concerns.

As per the latest report by Nuvama Institutional Equities, Vedanta could get NCLT approval in December 2025, and the demerger could be likely by FY26-end. Further, Nuvama estimates the fair value of Rs 686 (ceteris paribus) will be enhanced by Rs 84 per share after the demerger.

Also, Nuvama does not anticipate any risk of default by the promoter company, which is Vedanta Resources.

BUY Vedanta Stock?

Nuvama retained BUY with a target price of Rs 686 on Vedanta due to the company's focus on demerger, delivery, and deleveraging (3Ds) which is on course and would pay off with support of tailwind in commodity prices.

Also, the consensus recommendation from 13 analysts for Vedanta is BUY. Of this, 7 analysts have suggested STRONG BUY and 2 analysts have recommended BUY. The average target price is at Rs 563.54 apiece, which signals at potential 10% upside.

A latest report of Geojit also said, Vedanta Ltd. had a healthy financial performance in Q2FY26 due to robust revenue growth and disciplined execution across its diversified segments. Despite a mixed macro environment, there was healthy traction in the aluminium, zinc and power segments. Its focus on environmental stewardship, community development and sustainable growth is expected to enhance its reputation.

It lastly added, with multiple growth projects nearing commissioning and the transformation, Vedanta 2.0, gaining momentum, the company is well poised to become a global leader in critical minerals, energy transition and technology. Hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 568, based on 5.4x FY27E EV/EBITDA.

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