Vedanta profit surges 152%, demerges 2,200-acre real estate arm

Vedanta said the demerger will “unlock value out of these surplus assets.” The company did not give a timeline for the split.

The profit surge and cost performance come as Vedanta pushes to cut debt and improve margins across its metals and mining operations. Zinc India’s cost advantage is a key driver: at $851 per tonne, it sits well below the industry average for refined zinc production, which typically ranges from $1,100 to $1,300 per tonne globally. That gap gives Vedanta pricing power even if zinc prices soften.

The real estate demerger removes a non-core asset that has weighed on valuation, analysts said. The 2,200 acres of industrial land, much of it near Vedanta’s smelters in Rajasthan and Odisha, could be monetized through sale or development partnerships. The residential and commercial properties add another layer of potential cash flow.

Misra’s one-year term signals continuity rather than a strategic pivot. He steps into the role at a time when Vedanta is balancing operational gains with structural moves to simplify its corporate structure. The demerger is the latest in a series of steps to separate Vedanta’s diverse businesses into standalone entities, a process that began with the demerger of its aluminum, power, and oil-and-gas units in 2021.

The company did not provide an earnings call date or guidance for the current quarter.