'We Anticipate Completing Demerger By...' - Anil Agarwal's Vedanta Shares Latest Update On Demerger In Q4 Earnings Call

Vedanta Q4 Results 2025: Anil Agarwal-led Vedanta Limited is on the brink of a significant transformation. The company is actively pursuing a demerger that will separate its core businesses, allowing for greater focus on individual growth areas and ultimately unlocking long-term value for its stakeholders.

Mining major Vedanta Ltd on Wednesday reported a 154.4 per cent increase in consolidated net profit to Rs 3,483 crore in the quarter ended March 2025, driven by lower production cost and higher volume.

The company later shared the plans for the demerger of the conglomerate in the Q4FY25 earnings calls.  

Progress on the Demerger Process

Vedanta's demerger has already gained critical approval. In a recent shareholder and creditor meeting held on February 18, 2025, the first motion was approved, allowing the company to move forward with the second motion petition before the National Company Law Tribunal (NCLT). This is a key step towards completing the demerger.

Deshnee Naidoo, CEO of Vedanta Resources said, "Following a favorable voting from shareholders and creditors in the meeting held on 18th of February 2025, we have moved to the second motion petition before NCLT seeking Terminals approval to proceed on demerger. We anticipate completing the demerger by September 2025."

Vedanta is confident that the demerger will be completed by September 2025, creating two separate entities: Vedanta Aluminum and Vedanta Limited, each focusing on its own strategic goals.

Also Read: Adani Enterprises Q4 Results 2025 Expectations: All Eyes On Earnings

Mining Lease Transfers

One important aspect of the demerger is the transfer of mining leases. Vedanta needs to transfer mining rights for its bauxite and coal mines to Vedanta Aluminium, which is essential for separating the respective businesses. This process is already underway, and the company is working through the necessary regulatory approvals.

"This is part of the overall approvals that we have in our site. So, of course, the process that’s happening right now in NCLT is to approve the overall scheme, but the team has a detailed approval plan, including all of the mining licenses that will start being approved, in fact, have already started the process," said Naidoo.

The company is actively addressing these logistical challenges to ensure that the transfer happens smoothly and does not delay the overall demerger timeline.

Strengthening the Balance Sheet

As part of its demerger strategy, Vedanta is also focused on deleveraging and improving its financial health. The company has successfully reduced Vedanta Resources' debt by $2 billion and refinanced a portion of its bonds at more favourable terms. This has resulted in a substantial improvement in the company’s leverage ratio, making it more financially stable and capable of supporting future growth.

"We anticipate completing the demerger by September 2025. And as a result, the debt of our parent company VRL has decreased to $5 billion, which is the lowest in a decade, and the leverage at group level has improved to 2x from 2.7x a year ago," she said.

This debt reduction is part of Vedanta’s broader strategy to streamline operations and position both entities for sustainable growth after the demerger.

Unlocking Long-Term Value

Once the demerger is completed, both Vedanta Limited and Vedanta Aluminium will have the autonomy and focus to pursue their respective growth strategies. Vedanta 2.0, as the newly transformed company will be known, will operate with a clearer strategic focus, allowing for greater flexibility and better decision-making in the future.

"As we usher into FY 2026, we do so with renewed energy and strategic clarity. Our focus will remain sharp on scaling up volumes, unlocking further cost opportunities, fast-tracking high-impact growth projects, and executing the demerger to unlock long-term value," Naidoo asserted.

The demerger is expected to help Vedanta 2.0 create more targeted investments and improve overall operational efficiency, which will drive greater shareholder value in the coming years.