Vedanta Limited , a major player in the mining and metals sector, has announced its board will convene on August 21, 2025, to deliberate on a second interim dividend for the financial year 2025-26. This news comes on the heels of the company's recent first-quarter results, which paint a mixed picture of its financial health.

Dividend Considerations

The company has set August 27, 2025, as the record date for determining shareholder eligibility for the potential dividend. This move follows Vedanta's substantial dividend payout in the previous fiscal year, where it distributed ₹43.50 per share across four tranches.

Q1 Financial Performance

Vedanta's first-quarter results for FY2025-26 revealed some challenges:

Despite the decline in net profit, the company saw growth in revenue. The EBITDA remained unchanged, but margins contracted, indicating potential pressure on operational efficiency.

Debt Position and Business Segment Performance

Vedanta reported a total net debt of ₹58,220.00 crore, with a net debt-to-EBITDA ratio of 1.3 times. This figure suggests the company maintains a manageable debt level relative to its earnings.

On a positive note, key business segments including aluminium, oil and gas, and zinc international surpassed analyst expectations, demonstrating resilience in these core areas of operation.

Market Response

The market responded favorably to these developments, with Vedanta's shares closing up 1.82% at ₹438.10. This uptick suggests investor optimism about the company's dividend prospects and overall financial position.

Insider Trading Window Closure

In line with regulatory requirements, Vedanta has announced the closure of its trading window for designated persons from August 19, 2025, to August 23, 2025. This standard practice ensures fair trading around significant corporate events such as dividend declarations.

As Vedanta navigates through a challenging economic landscape, the potential second interim dividend could signal the company's commitment to shareholder returns. However, investors will be closely watching how the company balances these payouts with its operational performance and debt management in the coming quarters.

A Public Interest Litigation (PIL) has been filed in the Supreme Court of India, calling for an investigation into the allegations made by US-based short seller Viceroy Research against the Vedanta group. The petition, filed by advocate Shakti Bhatia, urges action from the Centre, Securities and Exchange Board of India (SEBI), and the Reserve Bank of India (RBI).

Allegations and Report Details

Viceroy Research, in its 87-page report, labeled Vedanta Resources as a 'parasite' holding company. The report claims that Vedanta Resources is draining Vedanta Limited, leading to increased debt and cash depletion. Specifically, the allegations include:

• Violations of SEBI's Fraudulent and Unfair Trade Practices (FUTP) norms
• Non-compliance with Listing Obligations and Disclosure Requirements (LODR) regulations
• A group structure described as 'financially unsustainable'

Petitioner's Claims

The PIL asserts that parts of Viceroy's allegations can be corroborated using publicly available information. This claim adds weight to the petitioner's request for a thorough investigation by regulatory bodies.

Viceroy's Stance

Gabriel Bernarde, Co-Founder of Viceroy Research, expressed strong views on Vedanta's financial situation:

• Predicted that Vedanta Resources is likely to default
• Stated that Vedanta Limited lacks the capacity to cover interest costs

Vedanta's Response

Vedanta has firmly rejected the allegations, characterizing them as a 'malicious combination of selective misinformation and baseless allegations.' The company stated that:

• The report was issued without contacting Vedanta for clarification
• The timing of the report's release is suspect

Implications and Next Steps

The filing of this PIL in the Supreme Court marks a significant escalation in the scrutiny of Vedanta's corporate structure and financial practices. As the case unfolds, it may have far-reaching implications for:

• Corporate governance standards in India
• The role of short sellers in the Indian market
• Regulatory oversight of complex corporate structures

Investors and market watchers will be closely monitoring the Supreme Court's response to this PIL and any subsequent actions by SEBI, RBI, or other regulatory bodies.