Vedanta Ltd, a leading global diversified natural resources company, has announced its first interim dividend for the financial year 2025-26 (FY26). The company's board of directors, in a meeting held on June 18, 2025, approved a dividend of ₹7 per equity share. This decision translates to a substantial payout of approximately ₹2,737 crore to its shareholders, reinforcing Vedanta's reputation as a consistent dividend-paying stock.
The interim dividend is declared on the face value of ₹1 per equity share. Vedanta has set Tuesday, June 24, 2025, as the record date for determining the eligibility of shareholders for this interim dividend. This means that investors holding Vedanta shares at the close of trading on June 24, 2025, will be entitled to receive the dividend. The actual dividend payout will be processed within the timelines prescribed by law.
Vedanta has a history of rewarding its shareholders with consistent and high dividends. In FY25, the company distributed a total of ₹43.50 per share through four interim dividends: ₹11 in May 2024, ₹4 in July 2024, ₹20 in September 2024 and ₹8.50 in December 2024. Over the trailing twelve months, the total dividend payout reached ₹46 per share, resulting in a dividend yield of approximately 9% to 11%, based on the stock's price range during that period. This commitment to returning value to shareholders is a key element of Vedanta's financial strategy.
The announcement of the interim dividend comes at a time when Vedanta is also actively pursuing its deleveraging strategy. On June 18, 2025, the company confirmed the sale of a 1.6% stake in Hindustan Zinc Ltd (HZL) through block deals to institutional investors, raising ₹3,028 crore. This move is aimed at strengthening the company's balance sheet and reducing its debt burden. Hindustan Zinc, a key subsidiary of Vedanta, had earlier declared its first interim dividend of ₹10 per share for FY26, resulting in a cash inflow of nearly ₹2,500 crore for Vedanta, further bolstering its liquidity position.
Vedanta's financial performance in the recent past has been robust. In the quarter ending March 2025, the company posted a 154.4% increase in consolidated net profit, reaching ₹3,483 crore, compared to ₹1,369 crore in the same quarter of the previous year. Total income also saw a healthy rise, coming in at ₹41,216 crore. This growth was attributed to lower costs and higher volumes, which together enhanced profitability.
As per SEBI regulations, Vedanta has enforced a trading window closure for insiders and key personnel. This blackout period commenced on June 14, 2025, and will remain in effect until June 20, 2025. This measure is designed to prevent insider trading and ensure fair market practices during the period leading up to and immediately following the dividend announcement.
Analysts have a generally positive outlook on Vedanta. According to Trendlyne data, the consensus recommendation from 15 analysts is to "BUY" the stock. The average target price is ₹511.60, suggesting a potential upside of approximately 12%.
