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Vedanta Secures AA+ Rating from ICRA

2026-05-30

Vedanta Group has received its highest domestic credit rating in over a decade after ICRA upgraded the long-term ratings of Vedanta Limited and Vedanta Aluminium Metal Limited to AA+ with a Stable outlook. Talwandi Sabo Power Limited was also upgraded to AA-/Stable from A+/Watch Developing, while the group’s short-term rating was reaffirmed at A1+.

The rating action marks Vedanta’s highest domestic credit rating since 2014. Vedanta Limited and Vedanta Aluminium Metal Limited, two of the largest entities emerging from the demerger, together account for over 75 per cent of the group’s long-term debt.

ICRA attributed the upgrade to stronger profitability, improved liquidity, operational performance and enhanced financial flexibility across key businesses. It also noted favourable commodity trends, improving cost structures and strong earnings visibility across aluminium, zinc and oil and gas.

The agency also highlighted Vedanta’s refinancing progress, including lower borrowing costs, proactive debt repayments and longer debt maturities. Average interest costs declined by nearly 200 basis points in FY26, strengthening debt servicing and reducing refinancing risk.

The Stable outlook follows the conclusion of Vedanta’s demerger, effective 1 May 2026. The restructuring is expected to create focused and independently scalable businesses with stronger capital allocation and improved financial flexibility.

Vedanta operates across zinc, silver, aluminium, copper, nickel, iron ore, oil and gas and power generation. The upgrade follows recent rating improvements for Vedanta Resources by S&P, Moody’s and Fitch, reflecting stronger confidence in the group’s financial profile and growth outlook.

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