Shares of Vedanta Limited, the metals and mining major led by Anil Agarwal, struggled to hold ground on Friday, July 31. The weakness came just a day after the conglomerate posted its first quarter result for the financial year 2026-27, a set of numbers that showed a striking 71% year-on-year jump in profit. In other words, the fundamentals looked strong, but the stock moved the other way.
By 11 am, Vedanta was trading 0.24% lower at Rs 266.95 per share on the BSE, with a market capitalisation of Rs 1,04,329.15 crore. Through the session, the stock swung between an intraday high of Rs 269.00 and an intraday low of Rs 263.20 per share.
A powerful first quarter
The Anil Agarwal-led company lifted its consolidated net profit by a whopping 71% year-on-year to Rs 5,473 crore in the first quarter of FY 2026-27. Over the same period, its net revenue climbed 50% on a year-on-year basis. For a group whose businesses stretch across metals and mining, it was a robust quarter on paper.
According to experts, the result landed broadly in line with expectations. The key drivers were favourable LME prices, better volume growth, a high premium, and gains from forex. Revenue from the Zinc segment stood out as one of the strongest performers during the quarter.
Hindustan Zinc did the heavy lifting
Much of the sequential improvement in the quarterly performance came from a sharp uptick in Hindustan Zinc's profitability. This single business contributed around 95.6% of the consolidated EBITDA, and that outsized share is what helped Vedanta log such a strong first quarter. It is a clear reminder that zinc remains the group's biggest earnings engine right now.
What the brokerages are saying
Emkay Global has kept its 'Buy' recommendation on the stock, with a target price of Rs 350 per share. In its report, the brokerage said,
"We maintain BUY on the stock and TP of Rs 350."Emkay explained that it has left its FY27 EBITDA estimate broadly intact, while trimming its FY28-29 EBITDA estimate by 4%. The reason is a more conservative silver price assumption, now lowered to $60 per ounce from the earlier $65 per ounce.
Motilal Oswal is taking a more cautious view. It has retained a 'Neutral' rating on the stock with a target price of Rs 290 per share. In its report, the brokerage noted,
"VEDL's 1QFY27 performance came largely as expected, supported by better volumes and favorable LME prices."The brokerage pointed out that the stock currently trades at 7.6x EV/EBITDA on its FY28 estimate. Based on its SoTP valuation, Motilal Oswal derives a fair value of around Rs 290 per share, with the Zinc business remaining the largest contributing vertical. Management, for its part, is targeting continued strong earnings growth, helped by upcoming capacity that supports higher VAP products and a favourable pricing environment.
So, is it time to buy?
The picture facing investors is fairly clear. The company's underlying numbers are strong, both profit and revenue have grown sharply, and a brokerage like Emkay Global sees room for the stock to rise towards Rs 350. But Motilal Oswal's Neutral stance and Rs 290 target are a reminder that the upside from current levels may be limited. In short, that split view is a big reason the stock stayed under pressure despite an impressive quarter.
