Shares of Vedanta are in focus today after the firm said its subsidiary Bharat Aluminium Company Limited (BALCO). Vedanta shares were set to open on a flat note in pre-opening deals today.
In the previous session, Vedanta stock closed at Rs 450.10. Market cap of the metal and mining firm stood at Rs 1.76 lakh crore on BSE.
“BALCO has received a penalty order for AY 2012-13 passed by the Assessment Unit, Income Tax Department levying penalty of Rs. 80,96,251 u/s 271(1)(c) of the Income Tax Act, 1961 (“Act”). The said penalty has been levied in pursuance to the assessment order passed u/s 254 read with Section 143(3) of the Act,” said Vedanta.
BALCO will file an appeal against the penalty order.
“Considering the merits of the case, BALCO intends to file the appeal with the Appellate Authority within the time limit prescribed under the Income Tax Law and rectification application against the said penalty order. BALCO is hopeful of a favourable outcome thereof and does not expect the said order to have any material financial impact on the Company,” added Vedanta.
Last week, the mining giant was cautioned by the Securities and Exchange Board of India (SEBI) for modifying its Scheme of Arrangement without prior approval. The notification, dated August 13, 2025, was acknowledged by the company on August 14. SEBI’s letter addressed the withdrawal of Part V of the Scheme that was filed with stock exchanges without the regulator’s consent.
In response, SEBI has advised Vedanta to exercise greater diligence in future dealings and to forward the Board’s comments to SEBI after implementing corrective measures to ensure compliance. Vedanta clarified that the warning is advisory and does not impose any financial or operational constraints on the company.
In Q1, the company’s net profit declined by 12% to ₹3,185 crore compared to the previous year, while revenue increased by 5.8% to ₹37,824 crore from ₹35,764 crore. The Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) remained stable at ₹9,918 crore, though the EBITDA margin shrank by 160 basis points to 26.2% from 27.8% a year earlier. Vedanta’s net-debt to EBITDA ratio was recorded at 1.3 times, with its Lanjigarh refinery achieving its highest-ever alumina production at 587 kt, marking a 9% year-on-year growth.