Vedanta Group has received a major credit rating boost from CRISIL Ratings, with its flagship company, Vedanta Limited, receiving its highest long-term rating in more than a decade. The rating agency also upgraded key group entities across aluminum, oil, gas and power companies, removing Vedanta Limited, Vedanta Aluminum and Vedanta Oil & Gas from “rating watch with development implications”.
The latest action reflects CRISIL’s assessment of the group’s stronger financial position following the separate structure, lower leverage and sustainable earnings across its core businesses.
Vedanta Limited has received the highest rating since 2014
CRISIL has upgraded Vedanta Limited’s long-term rating to AA+/Stable, representing the company’s strongest credit profile since 2014.
The company continues to benefit from the scale and diversification of its operations, supported by its 61 per cent stake in Hindustan Zinc and businesses that include copper, nickel, ferroalloys and critical metals, the agency said.
Highlighting the company’s balance sheet, Crisil said: “The company’s financial position remains strong, with net leverage improving significantly to 0.7x as of March 31, 2026 under the spin-off structure. Despite the planned capital expenditure, leverage is expected to remain comfortably below 1.0x over the medium term.”
It also added, “The low leverage, coupled with Hindustan Zinc’s sustainable earnings and cash flow generation, has strengthened the company’s financial position and enhanced its financial flexibility, supported by the significant market value of its investments.”
Vedanta Aluminum was also upgraded to AA+/Stable, with CRISIL highlighting its dominant position in the aluminum industry in India.
According to the agency, the company remains the country’s largest aluminum producer and the third largest in the world outside China, accounting for nearly 48 percent of the domestic market.
“Operating profitability rose to a record high in fiscal 2026, as the company reported EBITDA of $25,208 crore, reflecting an increase of 43% year-on-year compared to FY25.”
The agency expects the company’s financial position to remain healthy, saying “net leverage will remain below 1-1.25 times and interest coverage ratio above 8 times in fiscal 2027.”
Vedanta Oil & Gas also received an upgrade to AA+/Stable, with CRISIL saying the company emerged with one of the strongest financial profiles within the group.
“Under the separate structure, the company has reported EBITDA of around Rs 4,350 crore in FY26. Post the merger, the company has been allocated limited debt and has reached a net cash position,” the rating agency noted.
“Debt levels are expected to remain broadly stable, and net debt to EBITDA is expected to remain negative over the medium term,” Crisil also said, citing strong cash generation and disciplined capital allocation.
Vedanta Power’s senior secured long-term banking facility was upgraded to AA+(CE), with CRISIL attributing the improvement to the stronger credit profile of guarantor Vedanta Limited.
The agency also cited the company’s “strong contractual portfolio and fuel security arrangements,” noting that the Talwandi Sabo power plant maintained plant availability at 83 percent in fiscal 2026, above the level required to recover full fixed charges under the long-term PPA.
Meanwhile, ESL Steel Ltd, a subsidiary of Vedanta Iron & Steel, maintained its AA/Stable rating.
Commenting on the broader portfolio, CRISIL said Vedanta’s diversified portfolio across zinc, silver, lead, aluminium, copper and nickel continues to strengthen its operational profile.
“Vedanta Group has a diversified portfolio of minerals that includes zinc, silver, lead, aluminium, copper and nickel. Large scale of operations with healthy market share in domestic aluminum and zinc business and cost-effective operations in these segments enhances the operational profile of the group.”
Regarding parent company Vedanta Resources, the agency said: “The financial flexibility of the group has improved significantly post-separation with the significant market value of Vedanta Resources’ contributions in the demerged entities translating into a market value cap of approximately 5.6 times against its net debt as at 30 June 2026.”
