1:5 Split Ahead: Vedanta In Execution Phase For Demerger After NCLT Nod; Buy Metal Stock Before Q3? Rs 700 TP

Vedanta Ltd has entered the execution phase of its transformational demerger, which will split its 1 stock into five different entities. Vedanta will continue to be the parent company; however, the shares will also be split to Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, and Vedanta Iron & Steel. To be eligible, shareholders will need to hold Vedanta stock as of the record date, which will be announced in due course. Developments related to the demerger can be expected in the Q3 results, which will be announced either in late January or February.

How will Vedanta perform in its Q3 results for FY26? And should you buy Vedanta stock ahead of Q3? Let's find out!

Vedanta Ltd Share Price:

After the closing bell of January 9, Vedanta stock stood at Rs 609.90 apiece on BSE, up by 1.05% with market cap of Rs 2,38,494.57 crore. However, its weekly performance was volatile which led to a decline of over 1%. Despite this, the stock is trading close to its 52-week high of Rs 629.90 apiece.

During the trading week from January 5th to 9th, Vedanta clarified a news report that claimed that Delhi High Court has agreed to examine govt's refusal to extend Vedanta's contract.

Apart from this, a good news did emerge as the National Company Law Tribunal (NCLT), Mumbai Bench, approved its demerger scheme that included Talwandi Sabo Power Limited and other group entities. This is a step closer to Vedanta's restructuring of businesses to unlock maximum value.

Vedanta Clarification On Delhi HC Order:

A news report stated that Delhi HC has agreed to examine the government's refusal to extend Vedanta's contract.

In September 2025, Vedanta received an intimation from the Ministry of Petroleum & Natural Gas regarding application for extension of Production Sharing Contract of Block CB-OS/2. That time Vedanta said, " It was intimated to us that the application for extension has not been accepted. We had also informed that that we were engaging with authorities and were evaluating all resources available to us to resolve the same."

Accordingly, Vedanta clarified that a writ had been filed before the Hon'ble Delhi High Court challenging the decision of the Government. On January 6, 2026, the Hon'ble Delhi High Court has issued notice to Government of India and other respondents requiring them to file a reply. The Court has further directed the parties to maintain status quo.

Vedanta reiterated that it will continue to comply with SEBI Listing Regulations and
keep the stock exchange(s) duly informed of all material information / events.

Vedanta Talwandi Sabo Power Demerger:

NCLT Mumbai has given a green signal to Vedanta for demerger of Talwandi Sabo Power Limited and other group entities.

Vedanta's scheme of demerger includes various subsidiaries such as Talwandi Sabo Power, Vedanta Aluminium Metal Limited, Malco Energy and Vedanta Iron and Steel from the parent.

In case of Talwandi, it will take over all assets and liabilities of Merchant Power Undertaking which is supported by 100% secured creditor and 99.99% unsecured creditor approval.

Vedanta Demerger:

As per the regulatory filing this week, Vedanta said, "In a landmark decision, the Mumbai Bench of the NCLT has approved the Company's demerger into independent, pure-play companies, marking a key milestone in Vedanta's transformation into focused, sector-leading companies."

With this, it said, "Vedanta now enters the execution phase of a transformational demerger, leading to five separate listed companies."

According to Vedanta, each entity will have a clear strategic mandate, focused leadership teams, and dedicated capital structures. Also, this transition is expected to strengthen Vedanta's ability to grow as focused businesses while creating long-term value aligned with rapidly growing global and Indian demand.

That being said, 1 Vedanta will become:

Vedanta Aluminium

Vedanta Oil & Gas

Vedanta Power

Vedanta Iron & Steel

Vedanta Ltd, which will continue as parent company of Hindustan Zinc.

What will shareholders get? Post the demerger, for every share held in Vedanta
Limited, shareholders will additionally receive one share each of the 4 newly demerged entities.

Vedanta Q3 Results Preview:

Vedanta is yet to declare its Q3 results date. However, analysts predict that the third quarter will be strong for the company.

Analysts at Emkay Global said, "We expect VEDL to report stronger Q3FY26 results, with EBITDA of Rs149.4 billion (up 28.7% QoQ and 32.4% YoY). The improved performance is likely to be driven by a sequentially strong performance in the company's aluminium segment and continued robust performance from Zinc India, with EBITDA generation of Rs 49.2 billion and Rs44.1 billion, respectively, driven by higher average aluminium, zinc, and silver prices in Q3FY26, up 8.1%/11.7%/40.3% QoQ."

BUY Vedanta Stock?

The analysts at Emkay revised their target price to Rs 700 from earlier Rs 625 on expectation of stronger Q3. They have maintained BUY rating.

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