Vedanta Shares Climb 71% In Just 6 Months; Surges 8% This Week; Brokerages See More Upside After 1:5 Demerger

The bull run in the Vedata shares seems to be unstoppable, as the metal & mining major has clocked in a massive surge in stock value in just a span of a few months. Vedanta shares today are trading in the green with minimal gains, but the counter has seen better days. If we look at the charts, Vedanta shares have already spiked massively over the last six months, giving investors a handsome return of over 71%.

Vedanta 1:5 Demerger

The biggest catalyst behind the recent surge in Vedanta shares has been the company's approved 1:5 demerger plan. Vedanta Limited received approval from the Mumbai bench of the NCLT on December 16, 2025, for its restructuring proposal. The timeline has been extended to March 31, 2026, pending final regulatory and government clearances.

Under the demerger scheme, Vedanta Ltd will split into five independent listed entities covering aluminium, power, metals, oil & gas, and iron ore, steel & ferro alloys. Shareholders will receive one share in each of the four newly created entities for every Vedanta share held, while Hindustan Zinc will remain under the parent company.

The restructuring is expected to unlock value by allowing each vertical to operate independently with sharper capital allocation and operational focus, which could improve valuations, a key reason why the Vedanta demerger news has fuelled investor optimism.

Vedanta Q3 FY26 Results

The bullish sentiment around Vedanta stock took even better shape after the company reported stellar Q3 FY26 numbers for the quarter ended December 31, 2025.

Vedanta posted record consolidated revenue of Rs 45,899 crore, with a 19% YoY jump from Rs 38,526 crore. EBITDA rose 34% YoY to Rs 15,171 crore, while EBITDA margins expanded sharply to 41% from 34% a year ago, an impressive 700 basis point expansion.

Net profit surged 60% year-on-year to an all-time high of Rs 7,807 crore, compared to Rs 4,876 crore in Q3 FY25.

Is More Upside Left in Vedanta Shares? Brokerages Give BUY Call, Targets Up To Rs 898

Brokerages covering Vedanta are highly optimistic about the stock's medium-to-long-term outlook.

According to analysts, focused operations across individual business segments could lead to improved efficiency and potentially higher valuation multiples in the stock.

While the stock has already delivered strong gains, several factors could continue supporting momentum.

First, successful completion of the demerger could act as a fresh re-rating trigger. Second, favourable commodity cycles, especially in aluminium and zinc, remain supportive. Third, improving leverage metrics and strong cash generation provide financial comfort.

Systematix Institutional Equities has maintained a BUY rating with a target price of Rs 898, citing value unlocking potential post-demerger and strong operational momentum.

Meanwhile, the Geojit Equity Research report has once again given a BUY recommendation with a rolled-forward target price of Rs 791, based on the strong earnings growth in Q3FY26.

"Additionally, the management's ongoing efforts in cost optimisation, sustainability and portfolio diversification have strengthened the company's competitive position. Robust execution and favourable industry dynamics support continued momentum and position the company for sustained long-term growth," the Geojit report added.

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