Vedanta Aluminium Listing: All you need to know about the group’s crown jewel

As the four demerged entities get set to become public companies on Monday, the Aluminium business is said to be the key driver of value.

A combination of scale, industry-leading cost efficiencies, and strong growth visibility, makes Vedanta Aluminium one of the most closely watched asset among all demerged entities.

At What Price Could Vedanta Aluminium List?

The currently listed entity, ex-the demerged assets, is trading at around ₹309 per share. Market participants believe that the standalone aluminium business could likely list in the range of ₹420 to ₹450 per share.

If those estimates materialise, investors could recover a substantial portion of their original acquisition cost from the listed Vedanta entity and the aluminium company alone. In such a scenario, exposure to the oil & gas, power and steel & iron ore businesses could effectively come virtually at no cost.

For investors who bought Vedanta’s consolidated entity before the demerger record date on May 1 at around ₹720 – ₹760 per share, the value unlocking opportunity is becoming more evident.

Five Reasons Why The Street Most Excited About Vedanta Aluminium?

Vedanta is the third-largest aluminium producer globally outside China, behind only Rusal and Rio Tinto. Within India, it is the largest aluminium producer and operates nearly twice the capacity of Hindalco, its closest listed peer.
A major reason behind the investor enthusiasm is the company’s integrated business model, and the fact that it is one of the lowest-cost producers of the metal globally. The company operates five coal mines and two bauxite mines within 100 kilometres of its aluminium plants. This proximity helps reduce transportation costs and ensures a reliable supply of key raw materials.

As a result, the cost of production of Aluminium declined to approximately $1,752 per tonne in financial year 2026, the lowest level in five years. Over the last 14 quarters, Vedanta has reduced aluminium cost of production by nearly $980 per tonne, a decline of about 37%.

During the March quarter, the Aluminium business delivered its best-ever quarterly Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) per tonne of $1,512 and an annual EBITDA per tonne of $1,154.

Higher captive sourcing, lower input costs and a growing share of value-added products have all contributed to margin expansion. Vedanta has indicated that the cost of aluminium production could decline further to the $1,550 – 1,600 per tonne range over the next two years.

What Could Be The Worth Of Vedanta Aluminium?

Vedanta Aluminium generated an EBITDA of ₹25,502 crore in financial year 2026, representing a 43% year-on-year growth.

Analysts tracking Vedanta expect the Aluminium businesss EBITDA to grow to ₹32,000 crore by financial year 2028, as capacity utilization improves and cost efficiencies continue to flow through.

On the debt front, the entity is likely to carry a net debt of nearly $3.5 billion.

Here are some listing scenarios for Vedanta Aluminium:

With the listing now within close quarters, Vedanta’s Aluminium has increasingly been viewed as the crown jewel of the portfolio and potentially one of the most valuable pure-play metal stories available to Indian investors.

Also Read: Vedanta shareholders get an important message from Chairman Anil Agarwal; Here’s what he said