CLSA has maintained its outperform rating on Vedanta Limited with a target price of ₹580 per share following an in-line Q2FY26 performance, with consolidated EBITDA coming in at ₹114 billion — up 16% sequentially and matching consensus estimates.
The company guided for FY26 EBITDA of over US$6 billion, ahead of CLSA’s estimate of US$5.7 billion, supported by firm commodity prices, operational improvement, and lower aluminium cost of production (COP). CLSA said power sales uptick and improving zinc operations are also key contributors to profitability recovery.
The brokerage expects the ramp-up of expansion projects and backward integration — particularly in aluminium, power, and zinc — to drive earnings over the next few years. It added that the parent Vedanta Resources Limited (VRL) is now adequately funded, while management reiterated its guidance for completing the group demerger by the end of FY26.
CLSA said investors should watch the outcome of Vedanta’s US$2 billion bid for Jaypee Group’s assets, which include diversified power and cement holdings, as it could influence the company’s capital allocation strategy.
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