Vedanta Limited has received an ESG rating of 67 in the Strong category from ESGRisk.ai, a SEBI-registered ESG Rating Provider (ERP). The company disclosed this development to stock exchanges on January 15, 2026, in compliance with regulatory requirements under SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

ESG Rating Details

The ESG rating communication was received by Vedanta Limited through an email from ESG Risk Assessments and Insights Limited (ESGRisk.ai) on January 14, 2025, at approximately 05:15 PM IST. The rating assessment places the company in the Strong category, reflecting its environmental, social, and governance practices.

Independent Assessment

Vedanta Limited emphasized that it did not engage ESGRisk.ai for this evaluation, clarifying that the ESG rating was issued independently by the rating provider. This independent assessment approach ensures objectivity in the rating process and provides stakeholders with an unbiased view of the company's ESG performance.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the Listing Regulations, read with relevant SEBI circulars issued in this regard. Company Secretary and Compliance Officer Prerna Halwasiya signed the regulatory filing, ensuring proper compliance with stock exchange notification requirements.

Rating Accessibility

The ratings and methodology have been made available on ESGRisk.ai's website at https://india360.esgrisk.ai/Accounts/Ratinglist , providing transparency and accessibility for stakeholders interested in understanding the rating framework and assessment criteria.

Corporate Information

Vedanta Limited, with CIN L132O9MH1965PLC291394, maintains its registered office at 1st Floor, 'C' wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai. The company continues to maintain transparency in its ESG disclosures as part of its commitment to stakeholder communication and regulatory compliance.

Vedanta shares reached a record high on Wednesday, gaining over 5% to trade at ₹669.85, marking the stock's biggest single-day gain since May last year. The rally extends a strong trend with gains in six out of the last seven trading sessions.

Commodity Price Rally Drives Performance

The primary catalyst behind Vedanta's surge has been a sharp rally in global commodity prices across its key business segments. Silver, zinc, aluminium, and copper have all experienced significant price increases, directly benefiting the diversified mining company's revenue prospects.

A combination of factors including a weaker dollar and global demand-supply mismatches have contributed to this broad-based commodity price rally, providing strong tailwinds for Vedanta's diversified mining operations.

Valuation and Financial Projections

Vedanta's current valuation metrics reflect the improved commodity outlook. The company's total enterprise value stands at ₹3.30 lakh crore, which includes debt of nearly ₹62,000 crore. Based on consensus estimates projecting EBITDA of around ₹60,000 crore for FY27, the stock trades at 5.40 times its estimated FY27 Enterprise Value/EBITDA.

Nuvama's Bullish Outlook

Brokerage firm Nuvama has set the street's highest target price for Vedanta at ₹806, revised upward from ₹686. The brokerage projects Vedanta's EBITDA to reach ₹74,000 crore in FY27, raising estimates for the next two years by 17% and 8% respectively to factor in higher commodity prices and operational improvements.

Nuvama assumes EBITDA will grow at a 20% CAGR from FY25 to FY28, driven by cost reduction in aluminium operations, volume growth in international zinc, and power segment improvements.

Business Segment Breakdown

Vedanta's EBITDA profile is dominated by aluminium operations, followed by zinc (with Hindustan Zinc contributing 90%), and smaller contributions from oil & gas and power segments. The currently shut copper business is expected to contribute mildly negative EBITDA.

Demerger Value Unlocking

The ongoing demerger process continues to support valuations, with Chairman Anil Agarwal previously indicating completion by March-April 2026. Post-demerger, Vedanta will operate as five separately listed entities, with the aluminium business commanding the highest valuation in Nuvama's sum-of-the-parts analysis.

Nuvama notes that Vedanta's current market price does not fully factor in the aluminium and zinc businesses, suggesting other operations are available "virtually free" at current valuations.