Vedanta shares plunge over 11%; here’s why the mining major’s stock is under pressure

Shares of Vedanta Ltd fell 11.16 per cent in Friday’s session, hitting a low of Rs 680.60. The sharp decline followed a report that the mining conglomerate approached the Delhi High Court in relation to an arbitral order. Both BSE and NSE have sought clarification from the company regarding a news report dated January 30, 2026, titled “Vedanta moves HC over 2011 arbitral award declaring Balco shares transfer as void.” The company’s response is still awaited.

Business Today has not independently verified the report at the time of publishing this article.

On the earnings front, Vedanta posted a strong performance, reporting a 60 per cent year-on-year (YoY) jump in Q3 net profit to Rs 7,807 crore, compared with Rs 4,876 crore in the same quarter last year. Revenue from operations increased 19 per cent to Rs 45,899 crore in Q3 FY25, from Rs 38,742 crore in the corresponding period a year ago.

Meanwhile, Motilal Oswal Financial Services Ltd (MOFSL) has retained a ‘Neutral’ rating on the stock with a target price of Rs 810. “The stock currently trades at 7x EV/EBITDA and 4.4x P/BV based on FY27 estimates. We reiterate our Neutral stance with a sum-of-the-parts (SoTP)-based target price of Rs 810,” the brokerage said.

From a technical standpoint, some analysts noted that the counter looked ‘weak’ on charts.

Ravi Singh, Chief Research Officer at Mastertrust, said Vedanta appeared bearish on charts and can slip towards Rs 650, adding that immediate resistance would be at Rs 720.

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, said immediate support for the stock is seen at Rs 670, while resistance is placed at Rs 720. He noted that a clear move above Rs 720 could push the stock towards Rs 740, with the expected short-term trading range seen between Rs 670 and Rs 740.