Vedanta Dividend News:- Are you a shareholder eagerly awaiting the latest Vedanta dividend news? If so, you’re in for exciting updates! Vedanta Limited, a leading mining and metals conglomerate, has recently announced a significant first interim dividend of ₹7 per share for the financial year 2025-26, totaling a whopping ₹2,737 crore payout. This announcement, made on June 18, 2025, has sparked enthusiasm among investors, reinforcing Vedanta’s reputation as a shareholder-friendly company. With a record date set for June 24, 2025, this article dives deep into the details of this dividend, its implications, and what it means for shareholders and potential investors.
Vedanta Dividend News: An Overview
Contents
- 1 Vedanta Dividend News: An Overview
- 2 Dividend Details and Key Information
- 3 Strategic Moves: Stake Sale and Demerger
- 4 How to Benefit from the Dividend
- 5 Market Impact and Investor Sentiment
- 6 Vedanta’s Financial Health and Future Outlook
- 7 FAQ: Vedanta Dividend News and Key Details
- 7.1 1. What is the latest Vedanta dividend news for FY 2025-26?
- 7.2 2. What is the record date for Vedanta’s ₹7 per share dividend?
- 7.3 3. How does Vedanta’s dividend compare to previous years?
- 7.4 4. How does Hindustan Zinc’s dividend impact Vedanta?
- 7.5 5. What are the implications of Vedanta’s demerger for shareholders?
- 8 Conclusion
Vedanta Limited, led by Anil Agarwal, is a Mumbai-headquartered diversified natural resources company with operations spanning zinc, lead, silver, aluminium, oil and gas, and more. Known for its consistent dividend-paying track record, Vedanta has once again demonstrated its commitment to shareholder returns with the announcement of its first interim dividend for FY 2025-26. The Vedanta dividend news confirms a payout of ₹7 per equity share on a face value of ₹1, amounting to approximately ₹2,737 crore.
The record date for determining eligible shareholders is set for June 24, 2025, and the dividend will be paid within the legally prescribed timeline. This move follows Vedanta’s robust financial performance and strategic initiatives, including a recent stake sale in its subsidiary, Hindustan Zinc, which raised ₹3,028 crore.
Why This Dividend Matters
The Vedanta dividend news is significant for several reasons:
- Shareholder Value: The ₹7 per share dividend underscores Vedanta’s focus on rewarding shareholders, even amidst ongoing capital expenditure and deleveraging efforts.
- Financial Strength: The payout reflects Vedanta’s strong cash flows and operational efficiency, as evidenced by a 154.4% increase in consolidated net profit to ₹3,483 crore for the quarter ended March 31, 2025.
- Market Sentiment: The announcement has boosted investor confidence, with Vedanta shares rising nearly 2% in early trade following the news.
This article will explore the dividend details, Vedanta’s financial performance, and what investors can expect moving forward.
Dividend Details and Key Information
Dividend Amount and Payout
On June 18, 2025, Vedanta’s Board of Directors approved the first interim dividend for FY 2025-26 at ₹7 per equity share, with a total payout of approximately ₹2,737 crore. This translates to a 700% dividend on the face value of ₹1 per share. The company informed the BSE and NSE through a regulatory filing, stating, “The Board of Directors of Vedanta Limited, at its meeting held today, i.e., Wednesday, June 18, 2025, has considered and approved the First Interim Dividend of ₹7 per equity share… amounting to approximately ₹2,737 crores.”
Record Date and Payment Timeline
The record date for this dividend is set for Tuesday, June 24, 2025. Shareholders who hold Vedanta shares in their demat accounts as of this date will be eligible to receive the dividend. The company has confirmed that the dividend will be paid within the stipulated timelines as prescribed under law, typically within 30 days from the record date.
Comparison with Previous Dividends
Vedanta has a strong history of rewarding shareholders. In FY 2024-25, the company paid a total dividend of ₹43.5 per share across four tranches:
- ₹11 per share in May 2024
- ₹4 per share in August 2024
- ₹20 per share in September 2024
- ₹8.5 per share in December 2024
This amounted to a total payout of over ₹17,000 crore in FY 2024-25. In contrast, the first interim dividend for FY 2025-26 (₹7 per share) is relatively modest, aligning with projections from brokerage firms like JPMorgan, which estimated a dividend of ₹25–₹27 per share for FY 2026-27.
Financial Context
The Vedanta dividend news comes on the heels of strong financial performance. For the quarter ended March 31, 2025, Vedanta reported:
- Revenue Growth: Consolidated income rose to ₹41,216 crore, up from ₹36,093 crore in the previous year.
- Profit Surge: Consolidated net profit increased by 154.4% to ₹3,483 crore, driven by lower operational costs and higher production volumes.
- EBITDA Margin: Improved to 53% from 48.3% last year, surpassing analyst expectations.
This financial robustness supports Vedanta’s ability to sustain dividend payouts while pursuing strategic initiatives like deleveraging and business restructuring.
Strategic Moves: Stake Sale and Demerger
Hindustan Zinc Stake Sale
On the same day as the dividend announcement, Vedanta confirmed the sale of a 1.6% stake in its subsidiary, Hindustan Zinc Limited (HZL), through block deals to institutional investors, raising ₹3,028 crore. HZL itself announced a first interim dividend of ₹10 per share for FY 2025-26 on June 11, 2025, with a record date of June 17, 2025. Vedanta, holding a 63.42% stake in HZL, received approximately ₹2,679 crore from this payout. These funds bolster Vedanta’s financial flexibility, enabling it to support the dividend payout and ongoing capital expenditure.
Demerger Plans
Vedanta is also progressing with a demerger plan to split its business into five separate entities:
- Vedanta Aluminium Metal
- Vedanta Power
- Vedanta Oil & Gas
- Vedanta Iron and Steel
- Vedanta Limited (existing entity)
This restructuring aims to enhance financial flexibility, streamline operations, and unlock value for shareholders. The demerger, combined with the recent stake sale and dividend payouts, reflects Vedanta’s strategic focus on balancing growth, deleveraging, and shareholder returns.
Consider Mr. Sharma, a retail investor holding 1,000 Vedanta shares. With the announced dividend of ₹7 per share, he stands to receive ₹7,000. In FY 2024-25, he earned ₹43,500 (₹43.5 per share) from the same holding. While the FY 2025-26 first interim dividend is lower, Mr. Sharma remains optimistic due to Vedanta’s strong financials and the potential value creation from the demerger. Additionally, the ₹2,679 crore dividend from Hindustan Zinc strengthens Vedanta’s cash reserves, increasing Mr. Sharma’s confidence in future payouts.
How to Benefit from the Dividend
To take advantage of the Vedanta dividend news, investors must:
- Hold Shares by Record Date: Ensure Vedanta shares are in your demat account by June 24, 2025, to be eligible for the ₹7 per share dividend.
- Monitor Ex-Dividend Date: The stock typically trades ex-dividend a day or two before the record date, potentially impacting share prices. Check BSE/NSE announcements for confirmation.
- Verify Demat Account: Ensure your bank details are updated in your demat account for seamless dividend crediting.
Market Impact and Investor Sentiment
The Vedanta dividend news has generated positive sentiment, as reflected in social media posts on X. For instance, users like @CapitalMarket17 and @ZeeBusiness highlighted the ₹2,737 crore payout, emphasizing its significance for shareholders. However, the simultaneous 1.6% stake sale in Hindustan Zinc led to a 7% drop in HZL’s stock price, indicating mixed market reactions. Despite this, Vedanta’s shares rose nearly 2% in early trade, signaling investor confidence in the company’s financial strategy.
Analyst Projections
Brokerage firms remain cautiously optimistic:
- Nuvama: Projects Vedanta’s dividend at ₹30 per share for FY 2026 and FY 2027.
- JPMorgan: Estimates a reduced dividend of ₹25 per share for FY 2026, stabilizing at ₹27 per share for FY 2027.
These projections suggest that while the current ₹7 dividend is modest, Vedanta may announce additional interim dividends in FY 2025-26, potentially aligning with its historical payout trends.
Vedanta’s Financial Health and Future Outlook
Vedanta’s ability to declare a ₹2,737 crore dividend reflects its strong operational performance and strategic financial management. Key highlights include:
- Revenue Growth: A 14% year-on-year increase in revenue for the March 2025 quarter.
- Debt Management: The ₹3,028 crore raised from the Hindustan Zinc stake sale and ₹2,679 crore from HZL’s dividend payout enhance Vedanta’s deleveraging efforts.
- Capital Expenditure: Vedanta plans to raise up to ₹5,000 crore through non-convertible debentures to fund growth initiatives.
The company’s ongoing demerger and focus on cost efficiencies position it for long-term growth, making it an attractive option for dividend-seeking investors.
FAQ: Vedanta Dividend News and Key Details
1. What is the latest Vedanta dividend news for FY 2025-26?
The latest Vedanta dividend news is the announcement of a first interim dividend of ₹7 per equity share for FY 2025-26, approved on June 18, 2025. This dividend, amounting to approximately ₹2,737 crore, is payable to shareholders recorded as of June 24, 2025. The payout reflects Vedanta’s strong financial performance, with a 154.4% increase in net profit to ₹3,483 crore for the March 2025 quarter. The company’s robust cash flows, bolstered by a ₹2,679 crore dividend from its subsidiary Hindustan Zinc, support this shareholder-friendly move.
Investors can expect the dividend to be credited within 30 days from the record date, as per legal requirements. To stay updated, check www.bseindia.com or www.nseindia.com for official filings.
The record date for Vedanta’s first interim dividend of ₹7 per share is June 24, 2025. Shareholders who hold Vedanta shares in their demat accounts as of this date will be eligible to receive the dividend. The payout, totaling ₹2,737 crore, was approved by Vedanta’s Board of Directors on June 18, 2025. To ensure eligibility, investors should confirm that their shares are held before the ex-dividend date, typically a day or two before the record date. The dividend will be credited to shareholders’ bank accounts within the legally prescribed timeline, usually within 30 days. For precise details, monitor announcements on www.bseindia.com or www.nseindia.com.
3. How does Vedanta’s dividend compare to previous years?
In FY 2024-25, Vedanta paid a total dividend of ₹43.5 per share across four tranches: ₹11 in May, ₹4 in August, ₹20 in September, and ₹8.5 in December, totaling over ₹17,000 crore. In contrast, the first interim dividend for FY 2025-26 is ₹7 per share, amounting to ₹2,737 crore. While this is lower than the previous year’s total, it aligns with analyst projections of ₹25–₹30 per share for FY 2026, suggesting potential for additional dividends. For example, in FY 2023-24, Vedanta paid ₹29.50 per share (₹10,959 crore), and in FY 2022-23, it paid ₹101.50 per share (₹37,572 crore).
The current payout reflects Vedanta’s balanced approach to rewarding shareholders while funding growth and deleveraging initiatives.
4. How does Hindustan Zinc’s dividend impact Vedanta?
Vedanta’s subsidiary, Hindustan Zinc Limited (HZL), announced a first interim dividend of ₹10 per share for FY 2025-26 on June 11, 2025, with a record date of June 17, 2025. With Vedanta holding a 63.42% stake in HZL, it received approximately ₹2,679 crore from this payout. This influx strengthens Vedanta’s cash reserves, supporting its ₹2,737 crore dividend payout and ongoing deleveraging efforts, such as the ₹3,028 crore raised from selling a 1.6% stake in HZL.
The HZL dividend enhances Vedanta’s financial flexibility, enabling it to balance shareholder returns with strategic initiatives like the demerger into five entities. Investors can track HZL’s performance on www.bseindia.com for further insights.
Vedanta’s demerger plan, announced as part of its strategic restructuring, will split the company into five entities: Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas, Vedanta Iron and Steel, and the existing Vedanta Limited. This move aims to unlock value, enhance financial flexibility, and streamline operations. For shareholders, the demerger could lead to increased market value for each entity, as specialized businesses often attract higher valuations. However, it may also introduce short-term volatility.
The ₹2,737 crore dividend payout signals Vedanta’s commitment to shareholders during this transition. Investors should monitor updates on www.vedantalimited.com for details on the demerger timeline and its impact on dividends.
Conclusion
The Vedanta dividend news of a ₹7 per share first interim dividend for FY 2025-26, totaling ₹2,737 crore, underscores the company’s commitment to rewarding shareholders while pursuing growth and deleveraging. With a record date of June 24, 2025, and a strong financial performance backing this payout, Vedanta continues to be a compelling choice for dividend-seeking investors. The company’s strategic moves, including the Hindustan Zinc stake sale and demerger plans, further enhance its long-term value proposition.
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