Citi has maintained its buy rating on Vedanta with a target price of ₹585 per share following a strong Q2FY26 performance that saw EBITDA rise 16% year-on-year and 15% sequentially. The brokerage attributed the increase to higher commodity prices, improved volumes, and favourable forex movements, partly offset by higher operating costs.
Citi said parent-level leverage remains comfortable, with medium-term earnings supported by improving aluminium prices on the London Metal Exchange (LME), lower costs, and stable volume growth across core businesses. The firm expects the completion of the demerger process by FY26 to unlock value and streamline the conglomerate’s structure.
It also highlighted Vedanta’s status as the highest bidder for Jaypee Associates’ (JPA) assets, noting that while uncertainties remain, the potential acquisition could add strategic power assets. Citi said Vedanta is likely to pay ₹37 billion upfront and ₹124 billion over five years if approved by the NCLT, but expects the company to monetise certain assets post-acquisition to balance leverage.
The brokerage said it is not concerned about financial implications, given Vedanta’s strong cash flow generation and improving commodity cycle.
Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
