The Vedanta Group has received its strongest domestic credit rating in over 10 years after rating agency ICRA upgraded the long-term ratings of its major entities to AA+, signalling growing confidence in the company’s financial position and operational strength.
The upgrade comes at a crucial phase for the Group as it moves ahead with its demerger process. Two of the biggest entities emerging from this restructuring — Vedanta Limited (VEDL) and Vedanta Aluminium Metal Limited (VAML) — have both secured AA+ ratings with a Stable outlook. Talwandi Sabo Power Limited (TSPL) has also seen its rating upgraded to AA-/Stable from A+/Watch Developing.
ICRA also retained Vedanta’s short-term rating at A1+, which is the highest category for short-term instruments.
Strongest rating since 2014
According to the company, this is the Group’s highest domestic credit rating since 2014. The development is significant because the two entities that received AA+ ratings together account for more than 75% of Vedanta’s long-term debt exposure.
ICRA expects these trends to continue till FY27, supported by favourable commodity conditions, improving cost structures and steady earnings visibility in businesses such as aluminium, zinc, and oil & gas.
Another major factor behind the rating upgrade was the company’s progress in refinancing and reducing debt-related pressure.
ICRA said the restructuring is expected to create more focused businesses that can scale independently while improving capital allocation discipline and financial flexibility. The latest action has also raised expectations that another major demerged business, Vedanta Oil and Gas, could potentially secure an AA+ rating in the future.
Vedanta said the latest upgrade has also led to increased interest from domestic and international banks and financial institutions in participating in the Group’s refinancing plans.
The company operates across several sectors including zinc, silver, aluminium, copper, nickel, iron ore, oil & gas and power generation. ICRA cited the Group’s diversified operations, scale and cost-efficient business model as major strengths supporting its long-term outlook.
