Vedanta Resources to Repay $920 Million Debt This Fiscal Year

In a strategic move to strengthen its financial standing, Anil Agarwal-led Vedanta Resources Ltd has outlined a comprehensive plan to reduce its debt burden. The company has committed to repaying $920 million in the current financial year and an additional $675 million in the next, as part of its ongoing deleveraging and liquidity management exercise. This development reflects the group’s enhanced focus on capital structure optimisation and long-term financial sustainability.

Vedanta’s Deleveraging Drive and Capital Strategy

Vedanta Resources has been actively engaged in reducing its debt by leveraging various strategic financial tools. Speaking during the fourth quarter earnings conference call, Vedanta’s Chief Financial Officer, Ajay Goel, stated, “So $920 million is a debt repayment to do in the current year. Next year, fiscal 2027, it’s about $675 million.”

The company’s declining need for cash is a result of its consistent deleveraging and refinancing efforts. “So overall, we as a group in terms of cash management are in a historical best position,” he explained. According to Goel, Vedanta India’s overall cash flow is currently much higher due to increased volumes and reduced costs.

The financial year also saw Vedanta undertake several significant capital market actions. These included ₹8,500 crores through qualified institutional placement, ₹3,150 crores via offer for sale of Zinc shares, and $0.5 billion through equity partnership at Vedanta Resources. In addition, the group successfully refinanced a $3.1 billion bond portfolio, extending maturities and securing better terms.

Strengthened Financials and Group Leverage

These initiatives have enabled Vedanta to achieve deleveraging worth $1.2 billion at the group level: $0.7 billion at the parent company, Vedanta Resources Ltd (VRL), and $0.5 billion at Vedanta India. As of 31 March 2025, the net debt of Vedanta Resources (standalone) stood at $4.9 billion.

Crucially, the group’s leverage ratio has improved significantly. “And the leverage at the group level has improved to 2x from 2.7x a year ago. With this progress, both Vedanta Ltd and its parent entity now maintain a stronger leverage position than most of our key global peers,” Goel highlighted.

Vedanta Resources, the holding company for Vedanta and Konkola Copper Mines, operates across a diverse portfolio including oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminium, power, and glass substrate. This diversified operational base further supports the group’s financial resilience.

Read More: Vedanta Promoter Group Signs $530 Million Facility Agreement; No Direct Impact on Company Management

Vedanta Share Performance 

As of May 06, 2025, at 2:00 PM, Vedanta share price is trading at ₹415.15 per share, reflecting a decline of 1.04% from the previous closing price. Over the past month, the stock has surged by 10.99%.

Conclusion

Vedanta Resources’ continued commitment to reducing its debt profile and optimising cash flow management positions the group favourably within the global commodities landscape. Through strategic refinancing and capital market actions, the group has made significant strides towards achieving a robust and sustainable financial future.

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