Breakingviews - Vedanta's Efforts to Reduce Debt Face Trust Challenges

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Aug 26 2025

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Source: Reuters

Vedanta's Oil Business Issues: The Indian government is accusing Vedanta's oil division of accounting lapses, which has led to opposition against the company's plan to split into five separate units.
Legal and Financial Complications: A legal dispute over $578 million owed to the government complicates Vedanta's efforts to reduce its nearly $6 billion debt and secure a better credit rating.
Government Relations Strained: Vedanta's relationship with New Delhi has been tense, highlighted by previous modifications to its business plans and Foxconn's withdrawal from a semiconductor partnership due to government concerns.
Future Outlook: Analysts suggest Vedanta has financial stability for up to 18 months, but ongoing trust issues with the government may hinder its debt reduction strategy through the proposed breakup.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.