Vedanta stock rises 5% after BoFA upgrade to ‘buy’

Aluminum remains a key earnings driver for Vedanta, and expectations of firmer global prices have significantly improved earnings visibility. | Photo credit: DANISH SIDDIQUI

At 10:29 am, the stock was trading at the day’s high at ₹731.50, up 5.2 percent from the previous closing price of ₹695.10.

KEY HIGHLIGHTS

Vedanta Stock Movement Today

The brokerage’s bullish stance is driven by an improved outlook for aluminum prices, supportive silver prices and expectations of healthy dividend yields. BoFA Securities estimates that Vedanta could deliver a dividend yield of more than 6 percent by FY27E, increasing the stock’s attractiveness to income-oriented investors, while improving commodity fundamentals.

The upgrade also reflects growing confidence in the company’s financial stability. According to the brokerage, significant deleveraging at the parent company has eased concerns about a possible increase in rates for branded fees or inter-company loans, factors that previously weighed on investor sentiment. The improvement of the balance sheet position is seen as a reduction of risk and a strengthening of the overall visibility of corporate governance.

BoFA has raised its EBITDA estimates for FY26 to FY28 by 16-21 percent, taking into account higher aluminum price forecasts, higher real valuation for Hindustan Zinc Ltd, depreciation in USD-INR exchange rate and reduced holding discount of 5 percent compared to 15 percent earlier. The lower discount assumption reflects increased confidence in the group structure and capital allocation practices.

Aluminum remains a key earnings driver for Vedanta, and expectations of firmer global prices have significantly improved earnings visibility. At the same time, stable silver prices and favorable currency movements are expected to further strengthen profitability across all segments.

Published on February 25, 2026