New Delhi, July 18, 2025 – India’s leading credit rating agencies, CRISIL Ratings and ICRA, have once again reaffirmed their credit ratings for Vedanta Limited, signaling strong confidence in the company’s financial health, corporate governance, and business sustainability.
CRISIL reiterated its ‘AA’ long-term rating for Vedanta and ‘AAA’ for Hindustan Zinc Limited, while ICRA also reaffirmed its ‘AA’ long-term rating. This development comes as a major rebuttal to recent claims by short-seller Viceroy Research, which alleged structural subordination and overreliance on dividends at Vedanta’s parent company, Vedanta Resources Ltd.
CRISIL clarified in its report that, based on inputs from Vedanta’s management and key lenders, there have been no adverse responses from any investors or creditors. It also noted that both Vedanta Ltd (VEDL) and Hindustan Zinc Ltd (HZL) stocks have recovered since the Viceroy report was published on July 9, 2025.
The reaffirmed ratings further cover 11 Vedanta Group entities under CRISIL’s coverage, including ESL Steel Ltd, Talwandi Sabo Power Ltd, and Sesa Resources Ltd, all of which maintain stable ratings supported by robust financials and operational strengths in India.
Meanwhile, ICRA emphasized Vedanta Group’s commitment to reducing its debt. The group’s net debt-to-OPBDITA ratio improved from 3.2x in FY24 to 2.5x in FY25, particularly due to strong profitability in its aluminum and zinc operations. ICRA also factors in Vedanta Resources Ltd’s consolidated debt when calculating Vedanta Limited’s leverage metrics.
Ratings Denote Strong Financial Stability
According to credit rating definitions:
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‘AAA’ reflects highest safety and lowest credit risk.
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‘AA’ indicates very high safety and very low credit risk.
These ratings strongly refute any claims of financial instability or vulnerability raised in the short-seller report. Instead, they confirm Vedanta’s exceptional ability to meet its financial obligations on time.
At the parent level, recent refinancing efforts by Vedanta Resources Ltd have smoothed its debt maturity profile, paving the way for reduced interest costs from FY26 onward.
Conclusion
The reaffirmed credit ratings by CRISIL and ICRA reinforce Vedanta’s financial resilience and governance integrity. They decisively counter speculative concerns, reassuring investors and stakeholders of the group’s strong fundamentals and future outlook.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
