Vedanta Receives SEBI Warning Over Scheme Modification Non-Compliance

Mining conglomerate Vedanta Limited announced on Thursday, August 14 after market close, that it has received an administrative warning letter from the Securities and Exchange Board of India (SEBI) regarding non-compliance tied to modifications made to its Scheme of Arrangement.

According to Vedanta, the SEBI notice, dated August 13 and delivered around 1:00 PM IST on August 14, relates specifically to the company’s unilateral withdrawal of Part V of its Scheme, which had been filed with stock exchanges without securing prior written approval from the regulator.

SEBI, in its letter, has advised Vedanta to exercise greater caution in the future, and requested that the company submit its Board’s comments once necessary corrective actions have been implemented to ensure full compliance going forward.

Vedanta clarified that the warning is precautionary in nature and does not entail any financial penalties or operational constraints. The company emphasised that the notice has no material impact on its financial health, day-to-day operations, or the revised scheme.

VedantaQ1 FY26 Results Overview

In its consolidated financial performance for the first quarter of FY26, Vedanta reported a 12% year-on-year decline in net profit, which fell to ₹3,185 crore from ₹3,606 crore in the same period last year. Despite the drop in profits, revenue rose by 5.8% to ₹37,824 crore, compared to ₹35,764 crore in Q1 FY25.

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Quarterly EBITDA remained stable at ₹9,918 crore, though the EBITDA margin narrowed to 26.2%, down by 160 basis points from 27.8% a year ago.

Vedanta also reported that its net debt-to-EBITDA ratio stood at 1.3x. Notably, the company’s Lanjigarh refinery achieved record alumina production, reaching 587 kt—a 9% increase over the previous year. As of the end of June 2025, Vedanta’s net debt was recorded at ₹58,220 crore.

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