THEBUSINESSBYTES BUREAU

MUMBAI, FEBRUARY 4, 2026

Shares of Vedanta Ltd. and Hindustan Zinc Ltd. remained in focus on Tuesday, extending gains as easing selling pressure in precious metals helped lift the Nifty Metal index by around 2.87 per cent. Vedanta Ltd. shares advanced nearly 2.3 per cent, while Hindustan Zinc rose 2.7 per cent, following a sharp pullback in bullion prices that had weighed heavily on metal stocks last week.

The rebound in metal counters comes after an aggressive global commodities selloff towards the end of January. The risk-off sentiment was further amplified by a broader equity market decline across Asia, where technology stocks dragged benchmarks lower amid concerns over stretched valuations and rising spending on artificial intelligence.

Market sentiment toward Vedanta has also strengthened following its robust Q3 FY26 earnings performance. Several brokerages have reiterated their bullish stance on the company after the results. Based on revised estimates from leading brokerage houses including Citi, Nuvama, Kotak Institutional Equities, Emkay Global, Investec and ICICI Securities, the current target price range for Vedanta shares stands between ₹850 and ₹930, reflecting expectations of stronger earnings, favourable commodity prices and improving confidence in the company’s balance sheet trajectory.

According to Nuvama, Vedanta’s proposed demerger is expected to conclude in Q1 FY27, with April 1, 2026, projected as the effective date. The brokerage highlighted that the company is in the process of commissioning a 435 ktpa aluminium plant, which is likely to be fully operational by H1 FY27. Nuvama has revised its target price for Vedanta to ₹899.

 “We are raising FY27E/28E EBITDA estimates by 4% to factor in higher aluminium prices, assuming FY27/28 LME aluminium prices of USD 3,100 and USD 2,850 compared to earlier estimates of USD 3,000 and USD 2,750. We expect EBITDA to register a compounded annual growth rate of 21% over FY25–28E. On a marked-to-market basis, assuming LME aluminium at USD 3,200, zinc at USD 3,400, silver at USD 110 and USD/INR at 92, FY28E EBITDA is likely to reach around ₹1,049 billion, implying a fair value of ₹1,274,” Nuvama stated.

Motilal Oswal also maintained a strong near-term outlook on Vedanta, noting that the company’s earnings aligned with expectations and were supported by favourable commodity prices and improved volumes. The brokerage has set a target price of ₹810 for the stock.

 “Vedanta’s Q3 FY26 operational performance was largely in line with expectations, supported by higher volumes and favourable LME prices. We have increased our FY26 revenue, EBITDA and PAT estimates by 4 per cent, 3 per cent and 22 per cent, respectively, factoring in the strong earnings performance during the quarter,” Motilal Oswal said.

The brokerage further noted that Vedanta’s capital expenditure plans are progressing steadily and are expected to result in additional cost savings. The management remains focused on sustaining strong earnings growth, supported by upcoming capacity expansions and the production of higher value-added products. The company is also continuing its deleveraging efforts, with higher future cash flows expected to support both expansion and debt reduction plans.

Kotak Institutional Equities has set a target price of ₹890, while Citi has pegged its target at ₹900, reflecting confidence in Vedanta’s earnings visibility and strengthening balance sheet. Emkay Global Financial Services and ICICI Securities have also revised their target prices upward to ₹850 each following the Q3 performance.

JPMorgan has also expressed a positive outlook, highlighting that Vedanta’s key capacity expansion projects are progressing as scheduled. The Balco smelter (435 kt) and Lanjigarh alumina refinery Train-2 are ramping up production, while the Sijimali bauxite mine and Ghogarpalli coal mine are expected to be commissioned in the first and second halves of FY27, respectively.

Meanwhile, research firm Investec has taken note of the successful execution of Vedanta Resources’ debt refinancing, which is expected to lower borrowing costs in FY27 and FY28. Investec has set the highest target price of ₹930 for Vedanta and projected a dividend yield of around 4–5 per cent for FY27–28E.

For the third quarter, Vedanta reported a 60 per cent year-on-year jump in profit after tax to ₹7,807 crore. The company also recorded its highest-ever quarterly revenue of ₹45,899 crore, marking a 19 per cent year-on-year increase. Its net debt-to-EBITDA ratio improved to 1.23x from 1.40x, indicating strengthening financial stability and improved balance sheet health.