Vedanta shares drop 26% in two months, erase all post-demerger gains. Time to buy or better to avoid?

Published 22 July 2026 · finance

While the newly demerged Vedanta stocks grab the headlines with sharp upswings and downswings, the shares of the metals major Vedanta quietly fell more than

While the newly demerged Vedanta stocks grab the headlines with sharp upswings and downswings, the shares of the metals major Vedanta quietly fell more than 26% from its post-adjustment high in just two months, with analysts still advising caution.The shares of the company adjusted nearly 63% at the end of April this year, as it began to trade excluding the value of Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas, and Vedanta Steel & Iron Ore units. The stock adjusted to the mega demerger that marked one of the biggest corporate restructurings in India’s metals and mining space.After the demerger adjustment, the stock jumped over 24% in less than a month to hit a post-demerger high of Rs 360 apiece at the end of May. However, what followed was a consistent trend of decline, falling 26% to close at Rs 264.95 apiece on Tuesday. The stock has now erased all its post-demerger gains, and trades below the price at which it opened following the adjustment. At the same time, Nifty Metal crashed over 9% amid an overall downtrend in metal stocks.Meanwhile, the four new stocks that debuted on the stock market following the demerger saw sharp upswings and downswings.

Vedanta Iron and Steel has emerged as the winner in terms of gains, rising over 55% in 2026 so far. The restructured Vedanta meanwhile continues to house the zinc and silver businesses through Hindustan Zinc and is envisaged as an incubator for future ventures.Recently, CRISIL upgraded Vedanta's long-term rating to CRISIL AA+/Stable from CRISIL AA/Watch Developing and reaffirmed its short-term rating at CRISIL A1+. It also assigned a CRISIL AA+ rating with a Stable outlook to the company's non-convertible debentures.The ratings agency also said Vedanta's financial risk profile has improved significantly due to the continued consolidation of Hindustan Zinc and the allocation of debt to the demerged entities. It added that lower leverage, sustained earnings and cash flows from HZL, along with the market value of Vedanta's investment in HZL, have strengthened the company's financial flexibility. Over the medium term, the expected ramp-up in Zinc International and improving contributions from the copper and ferro alloys businesses are expected to support earnings.Also read | Vedanta, demerged Vedanta Aluminium, Vedanta Oil & Gas get rating upgrades from CRISILIs it time to buy Vedanta shares?The sharp drop in Vedanta’s share price has come on the back of an improving operating backdrop, not a deteriorating one, said Harshal Dasani, Business Head at INVasset PMS.