CRISIL Upgrades Vedanta Group Companies, Vedanta Limited Hits Decade High Rating

Vedanta Group has received a substantial credit rating upgrade from CRISIL Ratings, signaling a strengthened financial standing. The group's flagship company, Vedanta Limited, achieved its highest long-term rating since 2014, with CRISIL assigning it an AA+/Stable outlook. This upgrade reflects CRISIL's assessment of the group's improved financial position post-demerger, characterized by reduced leverage and sustained earnings across its core businesses.

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The company's financial profile remains strong, with net leverage improving significantly to 0.7x as of 31 March 2026 under the demerged structure. Despite planned growth capital expenditure, leverage is expected to remain comfortably below 1.0x over the medium term.

CRISIL highlighted Vedanta Limited's continued benefits from its scale and diversified operations, including its significant stake in Hindustan Zinc. The agency noted the company's strong balance sheet, with net leverage improving to 0.7x as of March 31, 2026, and projected to remain below 1.0x over the medium term despite planned capital expenditures. This financial flexibility is further supported by the substantial market value of its investments.

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Operating profitability rose to a record high in fiscal 2026, with the company reporting EBITDA of ₹25,208 crore, reflecting a 43% on-year increase from fiscal 2025.

Key group entities also saw upgrades. Vedanta Aluminium, India's largest aluminium producer and third-largest globally outside China, was upgraded to AA+/Stable. CRISIL pointed to its record operating profitability in fiscal 2026, with EBITDA rising 43% year-on-year. The agency anticipates net leverage to stay below 1-1.25 times and interest coverage above 8 times in fiscal 2027. Similarly, Vedanta Oil & Gas received an AA+/Stable rating, noted for its strong financial profile within the group, a net cash position post-demerger, and expected negative net debt to EBITDA over the medium term due to robust cash generation.

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Under the demerged structure, the company reported an estimated EBITDA of ~Rs. 4,350 crore in fiscal 2026. Following the demerger, the business has been allocated limited debt and has come to a net cash position.