Vedanta Group has received its strongest domestic credit rating in more than 10 years after rating agency ICRA upgraded the long-term ratings of its key entities to AA+, indicating growing confidence in the company’s financial position and operational strength.
The upgrade comes at a crucial stage for the group as it moves forward with the demerger. Two of the largest entities emerging from this restructuring – Vedanta Limited (VEDL) and Vedanta Aluminum Metal Limited (VAML) – have been rated AA+ with a stable outlook. Talwandi Sabo Power Limited (TSPL) also saw its rating upgraded to AA-/Stable from A+/Watch Development.
ICRA has also maintained Vedanta’s short-term rating at A1+, the highest category for short-term instruments.
Strongest ranking since 2014
According to the company, this is the group’s highest domestic credit rating since 2014. This development is significant because the two AA+-rated entities together account for more than 75% of Vedanta’s long-term debt exposure.
ICRA expects these trends to continue into FY27, supported by favorable commodity conditions, improving cost structures and visibility of steady earnings in businesses such as aluminium, zinc and oil and gas.
Another key factor behind the rating upgrade was the company’s progress in refinancing and reducing debt-related stress.
The restructuring is expected to create a more focused business that can expand independently while improving discipline in capital allocation and financial flexibility, ICRA said. The latest action has also raised expectations that another large combined company, Vedanta Oil and Gas, could receive an AA+ rating in the future.
The recent upgrade has also led to increased interest from local and international banks and financial institutions to participate in the group’s refinancing plans, Vedanta said.
The company operates in several sectors including zinc, silver, aluminium, copper, nickel, iron ore, oil and gas and power generation. ICRA cited the group’s diversified operations, scale and cost-effective business model as key strengths supporting its long-term outlook.
