Dividend Delight!
Vedanta's board approved a second interim dividend of Rs 16 per share for FY26, translating to a total payout of Rs 6,256 crore. The record date for this
generous dividend is August 27, 2025. This announcement shows Vedanta’s commitment to shareholders and is a significant event for investors in the Indian market, potentially impacting stock values and investor strategies.
Historical Context
The first interim dividend was Rs 7 per share, declared on June 18, with a payout of Rs 2,737 crore. Vedanta has a dividend yield of 8% and has paid Rs 35.5 as dividend in the last 12 months. This positions Vedanta as a top dividend-paying stock, making it an attractive option for income-focused investors in the country.
Market Reactions & Moves
The dividend announcement came after market hours, with Vedanta shares closing at Rs 447.10 on the NSE, up by Rs 1.60 or 0.36% from the previous day. The stock performance reflects investor sentiment surrounding the dividend and other developments affecting Vedanta. This subtle rise indicates positive reception in the dynamic Indian market.
Legal Hurdles Faced
The National Company Law Tribunal (NCLT) deferred the demerger plan hearing to September 17 due to concerns from the Centre regarding the alleged concealment of details. The Supreme Court also dismissed a Vedanta plea seeking additional compensation for its Talwandi Sabo Power project, adding to the company's current legal troubles. These situations can affect investment decisions.
Financial Performance Recap
In Q1, Vedanta saw an 11.7% year-on-year (YoY) decrease in consolidated net profit, totaling Rs 3,185 crore. The revenue from operations increased by 5.75% YoY to Rs 37,824 crore. The previous year's Q1 net profit was Rs 3,606 crore. These financial metrics provide an overview of the company’s performance.
