Vedanta dividend drops to ₹5 after demerger

Limited has declared an interim dividend of ₹5 per share for FY27, compared with ₹34 per share paid in FY26. The change follows the group’s demerger into five separate listed businesses, which has divided its earnings and cash flows across different companies. The company’s board approved a total dividend payout of approximately ₹1,955 crore on October 8, 2026. The record date is October 14, 2026. This is Vedanta Limited’s first dividend announcement since the demerger, completed earlier this year. The restructuring separated its aluminium, power, oil and gas, and iron and steel businesses from the residual company. The lower payout does not necessarily mean that shareholders’ overall dividend income has fallen by the same proportion. Before the demerger, the ₹34 dividend reflected the combined business structure. Shareholders now hold shares in separate entities, each with its own earnings, debt, investment requirements and dividend policy. Vedanta Aluminium Metal has already declared a separate interim dividend of ₹8 per share. Going forward, investors will need to assess dividend potential across the individual companies rather than comparing Vedanta Limited’s ₹5 payout directly with last year’s ₹34. Cash generation, commodity prices, capital expenditure and debt obligations will influence future distributions. The key factor to watch is whether the combined payouts from the demerged businesses can sustain the group’s historical shareholder returns.