Vedanta has announced a significant downward revision to its aluminium business outlook, marking a substantial adjustment to the company's financial projections. The mining and metals conglomerate has reduced its FY EBITDA guidance for the aluminium segment from over $4 billion to approximately $2.7 billion.

Revised Financial Projections

The company's updated guidance represents a notable shift in expectations for its aluminium operations. The revised projections reflect challenges in achieving previously anticipated production and earnings targets.

Impact on Business Outlook

The downward revision indicates that Vedanta's aluminium business is experiencing slower production and earnings growth than earlier expected. This adjustment suggests operational challenges or market conditions that have impacted the company's ability to meet its initial targets.

Future Growth Trajectory

Despite the current reduction in guidance, Vedanta has outlined a recovery path for its aluminium operations. The company projects EBITDA of $3.6 billion for FY27 and $4.1 billion for FY28, indicating expectations for gradual improvement in performance over the medium term.

The revised projections suggest that while the company faces near-term challenges, management anticipates a return to stronger financial performance in the aluminium segment by FY28, when EBITDA is expected to exceed the original FY guidance levels.

Vedanta Resources Limited has filed a revised disclosure with stock exchanges regarding the creation of encumbrance over equity shares of Vedanta Limited held by its subsidiaries. The disclosure, dated February 16, 2026, revises an earlier filing from February 02, 2026, and pertains to a significant financing arrangement that affects the company's shareholding structure.

Facility Agreement Details

The encumbrance stems from a facility agreement executed on January 30, 2026, providing total commitment aggregating up to US$ 350,000,000. The agreement involves Vedanta Resources Limited as the borrower, with Madison Pacific Trust Limited acting as agent for the benefit of lenders.

Encumbered Shareholding Structure

The encumbrance covers shares held by five key subsidiaries of Vedanta Resources Limited, representing a substantial portion of Vedanta Limited's equity capital.

Nature of Encumbrance

The facility agreement establishes several key restrictions and obligations that constitute the encumbrance:

• Negative Lien: Created on shares of Vedanta Limited held or to be held by obligors including the subsidiary companies
• Non-disposal Undertaking: Prohibits creation of any encumbrance over shares directly or indirectly held by obligors
• Control Maintenance: Requires VRL Group to retain control over Vedanta Limited and maintain at least 50.1% ownership of issued equity share capital

The company clarified that no physical pledge has been created over the equity shares in relation to the facilities as of the disclosure date.

Facility Utilization

According to the disclosure, borrowed amounts under the facility will be applied toward:

• Repayment of and payment of interest on existing financial indebtedness of the VRL Group
• Payment of interest, fees, costs and expenses related to the financing transactions
• General corporate purposes of the VRL Group

Regulatory Compliance

The disclosure has been made under Regulation 31 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, considering the definition of "encumbrance" under Chapter V of the Takeover Regulations. The filing indicates that 99.99% of promoter shareholding is now encumbered, representing more than 20% of total share capital of the listed company.

The revised disclosure adds clarity regarding the lender structure, noting that while First Abu Dhabi Bank PJSC and Mashreqbank PSC are the original lenders, other incoming lenders may accede to the facility agreement for the balance commitment from time to time.