Vedanta shares hit record high after credit rating upgrade
What's the story
Vedanta's share price has surged to a new all-time high, following an upgrade in its credit rating by ICRA, a Moody's affiliate. The rating agency upgraded the long-term ratings of key Vedanta Group entities to AA+ with a stable outlook. This is the highest domestic credit rating for Vedanta in over a decade and marks a major milestone for the company.
Rating details
ICRA upgrades ratings of Vedanta group companies
ICRA upgraded the ratings of Vedanta Ltd and Vedanta Aluminium Metal Ltd (VAML) to AA+/Stable. Talwandi Sabo Power Ltd (TSPL) was also upgraded from A+/Watch Developing to AA-/Stable. The agency reaffirmed the group's short-term rating at the highest level of A1+. This upgrade is particularly significant as two of the largest businesses emerging from the demerger framework have now secured AA+ ratings, accounting for over 75% of the group's long-term debt.
Rating rationale
Reasons for upgrade include improved liquidity and financial flexibility
ICRA cited stronger profitability, robust operational performance, improved liquidity, and enhanced financial flexibility across key businesses as reasons for the upgrade. The agency expects Vedanta's positive momentum to continue through FY27, backed by favorable commodity prices and strong earnings visibility across its aluminum, zinc, and oil & gas businesses. Vedanta operates a diversified portfolio spanning zinc, silver, aluminum copper nickel iron ore oil & gas and power generation.
Refinancing strength
Vedanta's refinancing profile is improving, says ICRA
ICRA also highlighted Vedanta's improving refinancing profile, driven by lower borrowing costs, proactive debt repayments, and debt maturity extensions. The agency noted a 200 basis points decline in average interest costs in FY26. This has significantly strengthened the company's debt-servicing capability and reduced refinancing risks at the promoter level. The improved financial position puts Vedanta in a strong position to complete its final refinancing phase with lower borrowing costs and longer tenors.
Market response
Technical indicators suggest strong upward trend for stock
Vedanta's share price opened at an intraday high of ₹360.7 per share on BSE today. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that Vedanta has broken out of the ₹321-₹341 consolidation range and has been trending higher since then. He added that trend strength has improved further as reflected in the rising ADX indicator. The RSI has also shown resilience by rebounding after approaching the 60 mark on two occasions, signaling sustained bullish momentum.