Vedanta Limited (VEDL.BO) stock analysis

In our weekly check, Vedanta Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 8.

About Vedanta Limited

Vedanta Limited is a Basic Materials company (Industrial Materials) based in India, listed on BSE as VEDL.BO.

What our checks show for VEDL.BO

Red flags

• Net debt is 1.3x a year of EBITDA (debt/equity 2.44). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0.1x): interest is paid from cash or new debt.
• The gross margin fell by 5.8 points, to 48.8%: costs are rising faster than prices.
• Analysts expect the net margin to shrink by 9.6 points from today's 22.2%.
• Revenue fell 18.7% a year over the last 3 years.
• The dividend takes 7255% of profit: little cushion if profit falls.
• The stock has fallen as much as 87% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.9 years.

Warning signs

• Analysts expect earnings per share to shrink about 7.9% a year.
• The price swings a lot: 38.8% annual volatility. Expect large ups and downs.

Strengths

• The net margin rose by 7.9 points over 5 years, to 22.2%.
• Operating cash flow is 2.1x net profit: the profit arrives as real cash.
• Earnings per share grew 16.1% a year over the last 3 years.
• Net profit grew 18% a year over the last 3 years.
• The company keeps 22.2% of its revenue as net profit.
• Free cash flow is 20% of revenue: cash for dividends, buybacks or growth.

Next earnings report: 2027-01-22

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Questions

What grade does Vedanta Limited (VEDL.BO) have?

In our weekly check, Vedanta Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of VEDL.BO stock?

This week's biggest flags for Vedanta Limited: High debt, Weak interest cover, Gross margin falling. In total 10 of 25 checks show a warning or a red flag.

What does Vedanta Limited do?

Vedanta Limited is a Basic Materials company (Industrial Materials) based in India, listed on BSE as VEDL.BO.

When does Vedanta Limited report earnings next?

The next earnings report is expected on 2027-01-22. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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