Vedanta Resources has cut its net debt by $1.1 billion in the first quarter of FY27, bringing the total down to $9.4 billion, the group said. This comes after a $500-million reduction through FY26.
The group’s net debt-to-EBITDA ratio fell to 1.2 times in Q1 FY27, down from 2 times in March 2025. Vedanta closed FY26 with cash and cash equivalents of $3.3 billion.
Finance costs at Vedanta Resources dropped 31 percent year-on-year, to $1,485 million in FY26 from $2,164 million in FY25. The group put this down to refinancing at lower interest rates and paying off costlier debt.
Vedanta said it has repeatedly relied on liability management and refinancing to push out debt maturities and bring down funding costs. Citing a December 2025 review by Moody’s, the group said these steps had pulled funding costs below 10 percent in FY26, down from 13 percent a year earlier.
S&P has estimated separately that the planned refinancing, if it goes through as expected, could cut Vedanta’s annual interest bill by around $150 million and reduce annual debt maturities, while giving the group more financial flexibility.
Aluminium play
At the operating-company level, Vedanta Aluminium Metal Limited is reported to be raising close to ₹13,500 crore through loans from multiple banks. The funds are meant to refinance debt that was passed on to the company after Vedanta’s businesses were demerged.
The loans are expected to carry an interest rate of around 7.9-8 percent, which the group said points to Vedanta Aluminium’s improved standing with domestic lenders.
Vedanta Limited began FY27 with a net debt-to-EBITDA ratio of around 0.3 times. Vedanta Aluminium’s ratio stood at around 0.9 times after its first quarter operating as a standalone company.
The group said the demerger has allowed each business to shape a capital structure suited to its own earnings, cash flow, investment needs and growth plans.
Ratings boost
Vedanta Limited, Vedanta Aluminium and Vedanta Oil and Gas have all been given AA+/Stable ratings by CRISIL and ICRA. Vedanta Iron & Steel has received an AA/Stable rating from CRISIL.
The group said these ratings reflect better visibility into each standalone business and its financial profile since the demerger.
Separately, Vedanta Aluminium is set to join the Nifty Next 50 index, just over three months after its stock market listing. Vedanta said lower interest costs and reduced leverage would leave more cash available for further deleveraging, growth investment and payouts to shareholders.