India’s top credit rating agencies, Crisil Ratings and ICRA, have reaffirmed Vedanta’s strong credit ratings, bolstering confidence in the company’s business stability, solid financial performance, and commitment to corporate governance. Crisil’s report specifically highlights that there has been no negative feedback from lenders or investors, according to discussions with the management.
Crisil maintained its AAA long-term rating for Hindustan Zinc Ltd and AA for Vedanta, while ICRA also upheld its AA long-term rating. This endorsement from the agencies counters the recent allegations by short-seller Viceroy, who had claimed that Vedanta Ltd’s parent company, Vedanta Resources, relied heavily on dividends to manage its debt and faced structural subordination. Crisil’s report also noted that the stock prices of both Vedanta Ltd and Hindustan Zinc Ltd have rebounded since the allegations were made.
“Following the short-seller’s report on July 9, 2025, and the subsequent price fluctuations of Vedanta Ltd and Hindustan Zinc Ltd shares, the Vedanta management has publicly dismissed all charges. Crisil has observed that the stock prices have recovered since the release of the report,” the agency explained. Crisil’s ratings cover 11 entities within the Vedanta group, including Hindustan Zinc, ESL Steel Ltd, Talwandi Sabo Power Ltd, and Sesa Resources Ltd, all of which have had their ratings reaffirmed.
“Crisil continues to monitor all its ratings closely. The positive outlook is supported by the robust business operations of Vedanta’s Indian subsidiaries and the company’s strong financial position,” the report added.
Similarly, ICRA expressed confidence in Vedanta’s commitment to reducing its debt, with the company’s leverage improving in FY2025. The ratio of net debt to EBITDA dropped to 2.5 times, compared to 3.2 times in FY2024, which reflects the company’s improved debt management. ICRA expects the strong performance of Vedanta’s aluminium and zinc divisions to further enhance the group’s financial standing.
ICRA’s evaluation also considers Vedanta Resources Limited’s (VRL) debt and financial expenses when assessing the company’s leverage and coverage metrics. Regarding the ratings, an AAA rating indicates the highest level of safety in meeting financial obligations, with minimal credit risk. AA-rated instruments are similarly secure, carrying very low credit risk.
The allegations of unsustainable debt and financial instability are thus baseless. The high credit ratings assigned to Vedanta and its subsidiaries demonstrate the company’s financial resilience and strong capacity to meet its financial commitments. Additionally, Vedanta Resources’ recent debt refinancing has improved its maturity profile, which is expected to reduce finance costs starting FY2026.
Vedanta Group is a global leader in critical minerals, transition metals, energy, and technology, with operations across India, South Africa, Namibia, Liberia, UAE, Saudi Arabia, Korea, Taiwan, and Japan. As the world’s largest integrated producer of zinc, the fourth-largest global producer of silver, and a top aluminium producer, Vedanta is vital to the global supply of materials for the energy transition.
The company is also India’s only private oil and gas producer and one of the largest private power producers. A champion of sustainability, Vedanta has committed to achieving net-zero emissions by 2050 or sooner. Through its social initiatives, the company has positively impacted the lives of nearly 7 million people in underserved communities.
