Vedanta Ratings Reaffirmed by ICRA; Leverage Improves to 2.5x in FY25
By Shishta Dutta | Updated at: Jan 9, 2026 01:54 PM IST
Mumbai, July 18, 2025 – Vedanta Limited (NSE: VEDL, BSE: 500295) announced today that ICRA Limited has reaffirmed its credit ratings, retaining a “Watch with Developing Implications” stance for its long-term instruments at ICRA AA and short-term instruments at ICRA A1+, citing stable business fundamentals and improving leverage metrics.
Strong operating performance in the aluminium and zinc segments supported cash flows, while refinancing at the group level reduced near-term liquidity risks. Stable contribution across business verticals and moderated capex intensity helped consolidate earnings, strengthening the overall credit profile and leverage position.
ICRA Rating Action and Key Justifications
The reaffirmation was published by ICRA on July 18, 2025, around 2:30 PM, and follows a thorough assessment of Vedanta’s operations and credit profile, including recent concerns flagged by a short-seller report. ICRA stated that it independently evaluated the report and maintained its ratings, reflecting continued confidence in the group’s financial management.
| Agency | Long-Term Rating | Short-Term Rating | Outlook |
|---|---|---|---|
| ICRA Limited | ICRA AA | ICRA A1+ | Watch with Developing |
Leverage Metrics Improve
ICRA highlighted that Vedanta’s consolidated leverage ratio (Net Debt/Operating Profit Before Depreciation, Interest, Tax, and Amortization or OPBDITA), including Vedanta Resources Ltd’s debt, has improved to 2.5x in FY25, down from 3.2x in FY24. This marks a significant improvement in balance sheet strength.
Operational Highlights Supporting Ratings
- Healthy profitability in Vedanta’s core businesses, particularly aluminium and zinc, remains a credit-positive driver.
- The group’s refinancing at Vedanta Resources Limited (VRL) has also smoothed out the debt maturity profile and is expected to lower finance costs from FY26 onwards.
Management Commitment to Debt Reduction
The rating rationale also notes Vedanta Group’s public commitment to ongoing debt reduction, reinforcing credit discipline amidst global volatility. ICRA’s comfort is drawn from this structural intent combined with positive operational cash flows.
Outlook
The rating reaffirmation follows improved leverage and stable cash flows from core businesses. Markets view the update as a signal of sustained credit discipline. Future movement will hinge on the execution of debt reduction plans and consistent earnings across verticals.
Vedanta Share Price Performance
As of 15:45 IST on July 18, Vedanta Ltd was trading at ₹445.50, up 0.28% from the previous close. The stock recorded an intraday range of ₹443.60 to ₹448.80, with a VWAP of ₹445.85 and a turnover of ₹7.24 crore on 1.62 lakh shares.
About Vedanta
Vedanta Limited is one of India’s leading natural resources conglomerates with diversified operations across zinc, aluminium, oil & gas, and power. The company is listed on both NSE and BSE and plays a strategic role in the country’s industrial development.
REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/f2bc2973-6ac5-4eb7-bb75-d8d3b4b9c7c5.pdf
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