Vedanta Shares Surge as S&P Upgrades UK Parent VRL’s Rating for Strong Balance Sheet and Liquidity

Vedanta shares rallied as much as 4% on Friday after the rating agency S&P Global Ratings upgraded the rating of its UK-based parent, Vedanta Resources (VRL), to ‘B-‘ from ‘CCC+’, citing an improving capital structure and liquidity while assigning a stable outlook.

Vedanta stock ended 3% higher at Rs 444.70 on the BSE.

The rating upgrade reflects VRL’s strong credit profile with a long-standing record of delivering superior performance and healthy free cash flows. VRL has been significantly deleveraging its balance sheet, leading to a robust capital structure that supports sustainable growth over the long term.

S&P revised its estimates on VRL’s earnings, estimating the EBITDA for fiscals 2025 and 2026 to be in the range of US$5.5 billion to US$6.0 billion annually.

The rating agency estimates the debt at the Vedanta Resources level to decline by another US$1 billion to about US$4.5 billion over the next 12 months. It also estimates interest expenses at the Vedanta Resources level to drop to US$550 million–US$600 million by the end of fiscal 2025 (ending March 31, 2025).

S&P noted in its research update that VRL has adequate internal funds to meet US$1.4 billion of debt maturities due by the end of 2025. The stable outlook reflects S&P’s view that the company will proactively address the maturity of US$1.2 billion of debt in April 2026, the firm said in its research update.