VEDANTA RESOURCES CUTS NET DEBT BY $1.1 BILLION TO $9.4 BILLION IN Q1 FY27

Vedanta Resources reduced its net debt by $1.1 billion in the first quarter of FY27, taking the total to $9.4 billion, the group said. This followed a $500-million reduction during FY26.

The group’s net debt-to-EBITDA ratio declined to 1.2 times in Q1 FY27 from 2 times in March 2025. It ended FY26 with cash and cash equivalents of $3.3 billion.

Vedanta Resources said its finance costs fell 31 percent year-on-year to $1.49 billion in FY26 from $2.16 billion a year earlier. It attributed the decline to refinancing at lower interest rates and the repayment of high-cost debt.

Vedanta Aluminium is reportedly raising around Rs 13,500 crore through loans from several banks. The funds are expected to be used to refinance debt transferred to the company following the demerger of Vedanta’s businesses.

The borrowing is expected to carry an interest rate of around 7.9-8 percent.

Vedanta Limited entered FY27 with a net debt-to-EBITDA ratio of around 0.3 times, while Vedanta Aluminium’s ratio stood at around 0.9 times after its first quarter as an independent company.

Vedanta Limited, Vedanta Aluminium and Vedanta Oil and Gas have received AA+/Stable ratings from CRISIL and ICRA, according to the group. Vedanta Iron & Steel has received an AA/Stable rating from CRISIL.

Vedanta cited a December 2025 assessment by Moody’s that said debt refinancing had reduced the group’s funding costs to below 10 percent in FY26 from 13 percent in the preceding year.

S&P has estimated that the proposed refinancing, if completed as planned, could reduce Vedanta’s annual interest costs by about $150 million. It could also lower annual debt maturities, the group said.

Separately, Vedanta Aluminium is expected to enter the Nifty Next 50 index, a little over three months after its listing.

2026-08-14T08:10:23Z