Vedanta Biggest Wealth Creator Among Top 100 Nifty Cos

• Vedanta’s 87% Total Shareholder Return is the highest among Nifty 50 & Nifty Next 50 companies in FY25.
• Strong balance sheet, leadership in key segments, operational excellence and the proposed demerger are among the major reasons for outperformance.

Bengaluru, 21^st April 2025: Natural resources giant Vedanta Limited delivered a total shareholder return (TSR) of 87% in fiscal year 2025, creating significant shareholder wealth. This is the highest among the Nifty 50 and Nifty Next 50 companies. Other companies in the top five include pharma major Divi’s Laboratories at 69%, Bajaj Holdings at 52%, Bharat Electronics at 51%, and Interglobe Aviation with a 44% TSR.

TSR is the number derived by calculating the total change in stock price and any dividends received during a period, divided by the initial stock price.

Vedanta’s shares surged nearly 70% in FY25 and also generated a dividend yield of 11.8%. The company’s 87% TSR is more than its sectoral peers, including JSW at 29%, Hindalco at 22%, Tata Steel at 1%, and Jindal Steel at 8%.

Key factors contributing to Vedanta’s high TSR include a strong balance sheet, the company’s lead in key commodities, production cost efficiencies, and rising demand for critical minerals. Similarly, expectations on market share gains and drugs going off patent fueled the rally in Divi’s Laboratories. At the same time, Interglobe benefited from its significantly high market position in the Indian aviation market.

The progress on Vedanta’s ongoing demerger also contributed to the stock’s gain. The demerger, which received 99 %+ approval from Vedanta’s shareholders and creditors, is expected to offer institutional investors an opportunity to invest in sectors closely aligned with India’s economic development.

In a recent letter to shareholders, Chairman Anil Agarwal highlighted the company’s focus areas. “We are a high-growth business and the demand for our critical minerals and transition metals continues to grow at a double-digit rate, one of the highest in the world,” he said.

Vedanta has major expansion plans for FY26. The company expects its ongoing expansion projects to help certain businesses reach the top decile of the global cost curve and drive volume growth.

The company emphasized in a recent interview that it is significantly expanding its aluminium capacity and is in the final stages of finalizing the location for its green aluminium production facility, which, as per the company, will be the world’s first fully green aluminium plant.

Vedanta is focusing on major capacity expansions across other units as well. Its BALCO smelter expansion is in an advanced stage, and its commissioning is targeted for Q1 FY’26. The company’s Zinc India unit plans for a 160,000 tons per annum roaster at Debari and a 510,000 tons per annum fertilizer plant, with the final commissioning targeted for Q4 FY26. Similarly, Vedanta’s Zinc International unit’s phase-2 expansion project is targeting commissioning in FY’26