1:5 Split Soon? Vedanta Ltd To Consider 3rd Interim Dividend On March 23, Share Jumps; Record Date & Buy Call

Metal giant, Vedanta Ltd, share price jumped amidst broader market crash on March 19. The billionaire Anil Agarwal-backed Vedanta stock traded near its intraday high and gained by nearly 1.4% on stock exchanges. The reason? Its proposal to reward investors with third interim dividend for FY26. Vedanta who is one of the largest dividend yield on Indian stock market, has fixed the record date for determining eligible shareholders.

Vedanta Ltd Share Price:

At the time of writing, Vedanta Ltd stock gained by 1.12% to trade at Rs 686.85 apiece on BSE. The stock zoomed by 1.4% and touched an intraday high of Rs 688.65 apiece in the opening bell. The stock is now less than Rs 100 away from surpassing its 52-week high of RS 770 apiece.

Vedanta Ltd 3rd Interim Dividend:

In its regulatory filing, Vedanta Ltd said, "the Board of Directors of the Company (the "Board") is proposed to be scheduled on Monday, March 23, 2026, to consider and approve the Third Interim Dividend on equity shares, if any, for the Financial Year 2025-26."

The exact details of how much dividend will be paid, is going to be revealed on March 23. Vedanta has a long history of dividend payouts.

Since September 2003, the company delivered at least 45 dividends, as per Trendlyne data. In the last 12 months, the company awarded up to Rs 23 dividend per share alone for FY26. Its current market yield is at Rs 3.4%.

Apart from this, Vedanta has also carried two bonus issues of 1:1 each in February 2005 and August 2008. While the stock has split once in the ratio of 1:10 in August 2008.

Vedanta Dividend Record Date:

To be eligible for Vedanta dividend, investors would require to hold the company shares as of record date, as per the protocol of BSE and NSE.

For the third interim dividend, Vedanta fixed Saturday, March 28, 2026, as the record date to determine the entitlement of the equity shareholders. However, since the record date falls on Saturday, Vedanta stock will turn ex-dividend on March 27th which falls on Friday.

Vedanta Demerger:

The dividend announcement comes ahead of Vedanta's demerger. Vedanta is in execution phase of a transformational demerger, leading to five separate listed companies. The demerger ratio is about 1:5.

According to Vedanta, each entity will have a clear strategic mandate, focused leadership teams, and dedicated capital structures. Also, this transition is expected to strengthen Vedanta's ability to grow as focused businesses while creating long-term value aligned with rapidly growing global and Indian demand.

That being said, 1 Vedanta will become:

Vedanta Aluminum

Vedanta Oil & Gas

Vedanta Power

Vedanta Iron & Steel

Vedanta Ltd, which will continue as parent company of Hindustan Zinc.

What will shareholders get? Post the demerger, for every share held in Vedanta Limited, shareholders will additionally receive one share each of the 4 newly demerged entities.

It will be keenly watched if Vedanta's board announces key important dates for the demerger on March 23.

Vedanta Share Price Recommendation:

The consensus recommendation from 13 analysts for Vedanta is BUY. EPS is expected to grow by 33.9% in FY26, as per Trendlyne data. Of the total, 9 analysts have suggested STRONG BUY and 1 analyst recommends BUY on Vedanta. No analysts have suggested SELL. The average 1-year target price is fixed at Rs 808.77 apiece, signaling at potential 18% upside ahead.

Last month, in its report, Geojit said, "Vedanta's earnings saw robust growth in Q3FY26, supported by operational excellence and key strategic initiatives during the quarter. The period was marked by the advancement of its demerger and commissioning of new assets in the aluminum segment. The approved demerger scheme is expected to unlock significant value and enhance the agility of individual business segments. Additionally, the management's ongoing efforts in cost optimisation, sustainability and portfolio diversification have strengthened the company's competitive position. Robust execution and favourable industry dynamics support continued momentum and position the company for sustained long-term growth. Hence, we reiterate our BUY rating on the stock with a rolled-forward target price of Rs. 791, based on 5.2x FY28E EV/EBITDA."

About Vedanta Ltd:

Vedanta Ltd, a subsidiary of Vedanta Resources Ltd, has operations in multiple sectors, including oil and gas, zinc, lead, silver, copper, iron ore, steel, aluminium and power, across India and the world.

Disclaimer:The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.