Vedanta Limited — Credit Ratings, 18-07-2025: Credit Rating

ICRA Limited has reaffirmed Vedanta's credit ratings at ICRA AA / Watch Developing / ICRA A1+, indicating continued confidence in the company's business stability and financial health. This reaffirmation follows an independent evaluation, including consideration of a recent short-seller report. The rating agency highlighted improved leverage, with the Net Debt/OPBDITA ratio strengthening to 2.5x in FY25 from 3.2x in FY24 (including Vedanta Resources Limited's debt), alongside healthy profitability, particularly in aluminium and zinc. The recent refinancing at VRL is also noted for smoothing debt maturity and potentially reducing future finance costs. This sustained rating could help maintain investor confidence and stabilize borrowing costs.