Planning to buy Vedanta stock? The metal giant is changing its dividend policy 

Metal and mining major Vedanta Ltd is likely to change its dividend policy from the earlier fixed flexibility of at least 30% of profits as dividends. Instead, the board will have the flexibility to pay 30% or the amount they deem fit, according to a report in LiveMint. 

The move, when implemented, may affect the sentiments of investors who have long relied on the company’s predictable returns.

Vedanta’s Chief Financial Officer Ajay Goel last week said that Vedanta’s new dividend policy will be more “principle-based” than “prescriptive.” 

The chnage in dividend policy comes as the metal and mining major is in the process of splitting into five separate listed entities. 

For investors analysing Vedanta dividend yield and income potential, the change in the introduces a major change less predictability but continued strength in payouts. 

A flexible dividend policy infers dividends are likely to still remain high but payout timing and amounts may vary. 

Now the dividend payout will be based on financial health rather than a fixed ratio. Vedanta share dividend may still remain attractive but slightly less predictable on a quarterly basis.

Meanwhile, Vedanta shares were trading 6.55% higher at Rs 289.40 in the current session. Market cap of the firm stood at Rs 1.13 lakh crore. 

Q4 earnings 

Vedanta reported a sharp rise in its financial performance for the March quarter (Q4 FY26), with consolidated profit after tax (PAT) surging 89 per cent year-on-year (YoY) to Rs 9,352 crore.

The company reported a consolidated revenue of Rs 51,524 crore, rising 29 per cent YoY, while EBITDA rose 59 per cent YoY to Rs 18,447 crore. EBITDA margin rose significantly to 44 per cent, rising 915 basis points (bps) compared to the year-ago period.

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