Vedanta Iron and Steel to Vedanta Oil and Gas, Vedanta Power: How Anil Agarwal's demerged stocks are performing

Shares of Vedanta Ltd and its demerged entities were in focus on Thursday after the companies released their production updates for the June quarter, giving investors fresh insights into the performance of each business following the group's landmark demerger. While Vedanta Ltd gained modestly, stronger moves were seen in some of its newly listed entities, with Vedanta Oil & Gas emerging as the top gainer.

Vedanta shares rose 2% to ₹276.70 on the BSE during the session, although the stock remains down 8% over the past one month. Among the demerged entities, Vedanta Aluminium climbed 3.4% to ₹459.75, Vedanta Power gained 4% to ₹42.74, Vedanta Iron & Steel hit its 5% upper circuit at ₹34.68, while Vedanta Oil & Gas advanced 6% to ₹40.20.

Vedanta Group's flagship company, Vedanta Ltd, completed its demerger into four separate entities and one original entity at the beginning of May 2026, with the shares of the demerged companies listing on the BSE and NSE on June 15. The restructuring was aimed at unlocking value across its individual businesses while helping reduce debt at the parent company and attracting investors to each standalone vertical.

The group also received a legal boost recently after the Delhi High Court upheld two foreign arbitral awards worth around $99 million in favour of Vedanta and Singapore-based Ravva Oil Company in a long-running dispute related to the production sharing contract (PSC) for the Ravva oil field in the Krishna Godavari basin. In an order dated July 1, 2026, Justice Jasmeet Singh allowed the enforcement petition filed by Vedanta and Ravva Oil under the Arbitration and Conciliation Act and directed the government to release the bank guarantees furnished by the companies within eight weeks.

How did each Vedanta business perform in Q1?

Vedanta Ltd

Following the demerger, Vedanta Ltd retained businesses such as Hindustan Zinc, Zinc International and the Copper business, among others.

The company said Hindustan Zinc's mined metal production increased 1% year-on-year to 268 kilotonnes (kt) during Q1FY27 from 265 kt a year earlier. Saleable metal production rose 4% to 260 kt from 250 kt, driven by higher zinc output, although refined lead production declined 2%.

Under Zinc International, total mined metal production declined 14% to 48 kt from 57 kt in the corresponding quarter last year.

Elsewhere, Ferro Alloys ore production increased 41%, copper sales rose 3%, while global copper rod sales declined 51%. The company's port operations at the Vizag General Cargo Berth also remained strong, with discharge volumes rising 40% and dispatch volumes increasing 11%.

Vedanta Aluminium

Vedanta Aluminium reported a 5% increase in aluminium production during the June quarter to 632 kt, compared with 605 kt in the corresponding period last year.

The company also informed exchanges that the mining lease for the Kuraloi (A) North Coal Block has been executed and that it secured the mine opening permission in June 2026.

Recently, brokerage house Motilal Oswal initiated coverage on the stock with a BUY rating and a TP of INR540 (premised on an SoTP valuation). We believe the transition toward becoming more captive and backward integrated will support a structural re-rating of valuation multiples.

Vedanta Iron & Steel

Vedanta Iron & Steel reported a 4% increase in saleable iron ore production to 2.6 million DMT, up from 2.5 million DMT a year earlier.

The company said iron ore production increased in Goa and Odisha, although output from Karnataka declined 46%, resulting in only marginal overall growth.

On the steel business, saleable steel production also rose 4% to 582 kt, compared with 562 kt in the corresponding quarter of the previous financial year.

Vedanta Oil & Gas

Vedanta Oil & Gas reported weaker operational performance during the quarter.

Average daily gross production declined 17% year-on-year to 77.7 kboepd (thousand barrels of oil equivalent per day) from 93.2 kboepd.

Similarly, total oil and gas volumes fell 17% to 7.1 kboepd, compared with 8.5 kboepd in the same period last year.

Vedanta Power

Vedanta Power delivered one of the strongest operational performances among the demerged businesses.

Power sales at Meenakshi Energy surged 245% year-on-year to 1,350 million units, compared with 391 million units in the year-ago period.

Overall power sales increased 38% to 5,225 million units during the June quarter from 3,784 million units in the corresponding period last year, according to the company's exchange filing.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.