Vedanta shares hit all-time high after ICRA upgrades rating

Shares of Vedanta climbed 1.72% to hit a record high of ₹360.70 on the BSE after rating agency ICRA upgraded the company’s long-term credit rating to AA+ with a stable outlook.

Shares of Vedanta rose nearly 2% on Friday to hit a fresh all-time high after rating agency ICRA upgraded the company’s long-term credit rating to AA+ with a stable outlook, marking the group’s highest domestic credit rating in more than a decade.

The stock climbed 1.72% in early trade to touch a new record high of ₹360.70 on the BSE after the upgrade announcement. The rally comes amid the group’s ongoing demerger exercise, under which Vedanta has been split into four separate entities, with listings still awaited.

ICRA, an affiliate of Moody’s, upgraded the long-term ratings of Vedanta Ltd and Vedanta Aluminium Metal Ltd (VAML) to AA+/Stable, while Talwandi Sabo Power Ltd (TSPL) was upgraded to AA-/Stable from A+/Watch Developing. The agency also reaffirmed the group’s short-term rating at A1+.

According to Vedanta Group, the latest action marks its strongest domestic credit profile since 2014. The company said Vedanta Ltd and VAML, two of the largest businesses emerging from the demerger framework, together account for more than 75% of the group’s long-term debt.

In its rationale, ICRA said the upgrade reflects “stronger profitability on the back of robust operational performance, improving liquidity profile and enhanced financial flexibility across key businesses.”

The agency added that these trends are expected to continue through FY27, supported by “favourable commodity dynamics, improving cost structures and strong earnings visibility across aluminium, zinc and oil & gas businesses.”

ICRA also highlighted Vedanta’s improving refinancing profile through lower borrowing costs, proactive debt repayments and extension of debt maturities. According to the agency, the group’s average interest costs declined by around 200 basis points in FY26, strengthening debt servicing capability and reducing refinancing risks at the promoter level.

The agency said the stronger financial position places the company well to complete its final refinancing phase with lower borrowing costs and longer debt tenures.

“The demerger is expected to create more focused and independently scalable businesses with stronger capital allocation discipline and improved financial flexibility,” ICRA said while assigning a stable outlook and removing the “Watch with Developing Implications” status following completion of the demerger process effective May 1.

The latest rating upgrade has also strengthened expectations that Vedanta Oil and Gas, another key demerged entity, could secure an AA+ rating in the future.

Vedanta operates across zinc, silver, aluminium, copper, nickel, iron ore, oil and gas, and power generation businesses. ICRA cited the group’s scale, diversified operations and cost-efficient business model as key strengths supporting its long-term credit outlook.

The latest domestic rating action follows recent upgrades for Vedanta Resources, the holding company of Vedanta Ltd, by global rating agencies including S&P, Moody’s and Fitch over the past two months.