Vedanta Limited has maintained its position as one of India’s top dividend-paying stocks, consistently rewarding shareholders with substantial payouts. The mining conglomerate recently announced its first interim dividend for the financial year 2025-26, continuing its tradition of strong shareholder returns. This comprehensive guide covers everything investors need to know about the latest Vedanta dividend news, from payment timelines to tax implications and future outlook.
Latest Dividend Announcement Details
On June 18, 2025, Vedanta’s board of directors approved the first interim dividend of Rs 7 per equity share for the financial year 2025-26. This dividend announcement represents a total payout of approximately Rs 2,737 crore to shareholders. The company made this decision during a board meeting and subsequently filed the information with stock exchanges.
Key Dates for Shareholders
- Announcement Date: June 18, 2025
- Record Date: June 24, 2025
- Payment Timeline: Within stipulated legal timeframes following the record date
According to the official exchange filing, shareholders whose names appear in the company’s records as of the record date will be eligible to receive this dividend. Vedanta has confirmed that the interim dividend will be paid within the legally prescribed timelines after the record date.
“The Board of Directors of Vedanta Limited, at its meeting held today i.e. Wednesday, June 18, 2025, has considered and approved the First Interim Dividend of Rs 7/- per equity share on face value of ₹ 1/- per equity share for the Financial Year 2025-26 amounting to c. ₹ 2,737 Crores.”
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Market Reaction to Dividend News
Following the dividend announcement, Vedanta’s stock showed mixed reactions in the market. Initially, the shares traded lower but recovered to trade flat at around Rs 458.75 on the BSE by the end of the trading session. This recovery suggests that the dividend announcement was largely in line with market expectations.
Analyst Perspectives
Market analysts have provided mixed views on Vedanta’s latest dividend announcement. While the dividend yield remains attractive compared to market averages, some experts point to the company’s ongoing deleveraging efforts as a factor that might influence future payouts.
“Vedanta continues to maintain its position among India’s top dividend payers with a yield of approximately 7-10%. However, investors should monitor the company’s deleveraging initiatives and upcoming demerger plans, as these could impact future dividend sustainability.”
Recent Stock Performance
Vedanta shares have shown modest performance over recent periods:
- Year-to-date: Up 2.63%
- One-month period: Up 3.50%
- Three-month period: Down 0.74%
- Six-month period: Down 8.09%
This performance comes against the backdrop of the BSE Metals index, which has gained 5.47% year-to-date, indicating that Vedanta has slightly underperformed its sector benchmark.
Historical Dividend Trends
Vedanta has established itself as one of India’s most generous dividend-paying companies. Understanding the company’s dividend history provides valuable context for current and prospective shareholders.
| Financial Year | Total Dividend (Rs/share) | Dividend Frequency | Approximate Yield |
| FY 2025 (Current) | 7.00 (First interim) | First announcement | To be determined |
| FY 2024-25 | 43.50 | Multiple announcements | ~10% |
| FY 2023-24 | 29.50 | Multiple announcements | ~7.11% |
| FY 2022-23 | 101.50 | Multiple announcements | ~20% |
Quarterly Dividend Distribution (FY 2024-25)
In the previous financial year, Vedanta distributed dividends across multiple announcements:
- May 2024: Rs 11 per share
- August 2024: Rs 4 per share
- September 2024: Rs 20 per share
- December 2024: Rs 8.50 per share
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Financial Context Behind the Dividend
Vedanta’s latest dividend announcement comes amid significant corporate developments that provide important context for shareholders and potential investors.
Hindustan Zinc Stake Sale
The dividend announcement coincided with Vedanta’s sale of a 1.6% stake in its subsidiary Hindustan Zinc Limited (HZL). This stake sale, executed through an institutional block deal, raised approximately Rs 3,028 crore. The company sold 66.7 million shares via an accelerated bookbuild process.
According to company statements, the capital raised from this stake sale will be used to “de-leverage the balance sheet and enhance financial flexibility” as Vedanta progresses with its planned demerger into standalone entities.
Demerger Plans and Impact
Vedanta is currently preparing for a significant corporate restructuring that will split the business into five separate entities:
- Vedanta Limited (existing entity)
- Vedanta Aluminium Metal
- Vedanta Power
- Vedanta Oil & Gas
- Vedanta Iron and Steel Limited
All four new entities will be separately listed on the NSE and BSE. The demerger ratio has been fixed at 1:1, meaning shareholders will receive one share in each new company for every share held in the current Vedanta Limited.
The ongoing demerger process and deleveraging efforts may influence Vedanta’s dividend policy in coming quarters. Investors should monitor these developments closely for potential impacts on future payouts.
Tax Implications for Shareholders
Understanding the tax treatment of dividends is crucial for shareholders to accurately assess the net returns from their Vedanta investments. The tax implications vary based on the shareholder category and applicable regulations.
Dividend Taxation in India
As per current Indian tax laws, dividends are taxable in the hands of recipients at their applicable income tax slab rates. Here are the key aspects of dividend taxation that Vedanta shareholders should be aware of:
For Resident Individual Shareholders:
- Dividends are added to total income and taxed at the individual’s applicable income tax slab rate
- TDS (Tax Deducted at Source) of 10% if dividend exceeds Rs 5,000 in a financial year
- Option to submit Form 15G/15H to avoid TDS if eligible
For Non-Resident Shareholders:
- TDS at 20% plus applicable surcharge and cess
- Lower rate may apply under Double Taxation Avoidance Agreement (DTAA) benefits
- Required to submit tax residency certificate and Form 10F for DTAA benefits
Regulatory Compliance
Vedanta’s dividend distribution complies with all SEBI (Securities and Exchange Board of India) and RBI (Reserve Bank of India) regulations. The company follows the prescribed timelines for dividend declaration, record date announcement, and payment processing.
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Future Dividend Outlook
While past performance doesn’t guarantee future results, analyzing expert projections and company statements can provide insights into Vedanta’s potential dividend trajectory.
Analyst Projections
Financial research firm Nuvama has projected Vedanta’s dividend per share at Rs 30 each for both FY26 and FY27. This projection suggests that analysts expect Vedanta to maintain substantial dividend payouts despite ongoing corporate restructuring.
“We project Vedanta’s dividend per share at Rs 30 each in FY26 and FY27, reflecting our confidence in the company’s continued commitment to shareholder returns despite the ongoing demerger process.”
Factors Influencing Future Dividends
Several key factors will likely influence Vedanta’s dividend policy in the coming years:
Positive Factors:
- Strong operational performance across business segments
- Potential commodity price improvements
- Successful completion of the demerger process
- Historical commitment to high dividend payouts
Potential Constraints:
- Ongoing deleveraging initiatives
- Capital requirements for growth projects
- Regulatory changes affecting dividend distributions
- Global economic uncertainties
The first interim dividend of Rs 7 per share represents approximately 23% of Nuvama’s full-year projection of Rs 30 per share, suggesting potential for additional dividend announcements later in the fiscal year.
Investment Considerations for Dividend Investors
For investors focused on dividend income, Vedanta presents both opportunities and considerations that should be carefully evaluated.
Advantages
- Consistently high dividend yield (7-10% range)
- Multiple dividend declarations throughout the year
- Strong historical commitment to shareholder returns
- Potential for additional value through the upcoming demerger
Considerations
- Dividend sustainability dependent on commodity price cycles
- Ongoing deleveraging may impact future payout ratios
- Potential volatility during the demerger implementation
- Sector-specific risks in mining and metals
Long-Term Investment Strategy
For long-term dividend investors considering Vedanta, financial advisors suggest the following approaches:
- Consider Vedanta as part of a diversified dividend portfolio rather than a single investment
- Monitor the company’s debt reduction progress as an indicator of dividend sustainability
- Evaluate each of the soon-to-be-demerged entities separately for their dividend potential
- Reinvest dividends during periods of share price weakness to enhance long-term returns
- Stay informed about regulatory changes affecting dividend taxation
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Conclusion: Navigating Vedanta’s Dividend Landscape
Vedanta’s latest dividend announcement of Rs 7 per share continues the company’s tradition of rewarding shareholders with substantial payouts. With a record date of June 24, 2025, eligible shareholders can expect to receive this dividend within the legally prescribed timelines.
While the company maintains its position as one of India’s top dividend-paying stocks, investors should carefully consider the ongoing corporate restructuring and deleveraging initiatives when evaluating Vedanta’s long-term dividend potential. The upcoming demerger into five separate entities presents both opportunities and uncertainties that may influence future dividend policies.
For dividend-focused investors, Vedanta continues to offer attractive yields in the current market environment. However, a balanced approach that considers both the dividend income and the underlying business fundamentals will be crucial for navigating the evolving landscape of this mining conglomerate.
“The true value of dividend investing lies not just in the current yield, but in understanding the company’s capacity to sustain and grow those dividends over time. Vedanta’s structural changes make this analysis particularly important for current and prospective shareholders.”