Vedanta Ltd, a diversified natural resources conglomerate, has announced a board meeting scheduled for June 18, 2025, to consider the declaration of its first interim dividend for the financial year 2025-26 (FY26). This announcement has caught the attention of investors, reinforcing Vedanta's reputation as a company committed to returning value to its shareholders. The company has fixed June 24, 2025, as the record date to determine the eligibility of shareholders for the said dividend, if declared.
The announcement, made on June 13, 2025, signals Vedanta's intent to continue its trend of rewarding investors through dividends. Vedanta is recognized as one of the high dividend-paying stocks, with a dividend yield of around 7.09%. The decision aligns with the company's established dividend policy, reflecting its strong financial performance and a shareholder-centric approach.
In the past financial year, FY25, Vedanta distributed a total of ₹35 per share through multiple interim dividends. These included ₹11 in May 2024, ₹4 in August 2024, ₹20 in September 2024, and ₹8.50 in December 2024. Over the trailing twelve months, the total dividend payout reached ₹46 per share, translating to a yield of approximately 9% to 11% based on the company's share price.
Vedanta's financial results for the quarter ended March 31, 2025, showcased a significant 154.4% increase in consolidated net profit, reaching ₹3,483 crore. This substantial growth was primarily driven by reduced operational costs and increased production volumes. The company's income also saw a rise, reaching ₹41,216 crore compared to ₹36,093 crore in the previous year.
For the entire fiscal year FY25, Vedanta reported its highest-ever annual revenue of ₹1,50,725 crore, marking a 10% year-on-year increase. The company's EBITDA stood at ₹43,541 crore, the second-highest ever, demonstrating a robust 37% year-on-year growth. The profit after tax (PAT) also improved significantly, jumping by 172% year-on-year to ₹20,535 crore. These figures underscore Vedanta's effective management and strategic initiatives.
In addition to the potential dividend payout, Vedanta has also been actively pursuing fundraising activities. The company recently announced plans to raise up to ₹5,000 crore through non-convertible debentures.
Vedanta is also working towards a demerger of its businesses, a strategic move aimed at unlocking value for its shareholders. The company has received some relief in this regard, with the National Company Law Appellate Tribunal (NCLAT) issuing an interim stay order on a previous ruling concerning the demerger scheme.
Ahead of the board meeting, Vedanta's share price experienced a positive movement, gaining 2% during intraday trading on Monday. This reflects investor optimism regarding the potential dividend announcement.
To be eligible for the dividend, investors must purchase Vedanta shares at least one day before the record date, June 24, 2025, to comply with the T+1 settlement procedure. This ensures their names are included in the list of eligible shareholders to receive the dividend payout.
