India’s top credit rating agencies, CRISIL Ratings and ICRA, have reaffirmed the credit ratings of Vedanta Limited and its group companies, signaling sustained confidence in the group’s financial health, operational strength, and governance integrity.
CRISIL reaffirmed:
- AAA for Hindustan Zinc Ltd
- AA for Vedanta Ltd
ICRA similarly reaffirmed Vedanta’s AA rating, highlighting its improved leverage profile and operational efficiency.
These ratings come amid allegations made by short-seller Viceroy Research that targeted Vedanta Resources Ltd (VRL), the parent of Vedanta Ltd, accusing it of structural subordination and excessive reliance on dividends.
CRISIL, in its official statement, noted:
“The Vedanta management in response, via its press release dated July 9, 2025, has dismissed all the charges. Crisil notes that the stock prices for Vedanta Limited and Hindustan Zinc Limited have recovered since the report’s publication.”
CRISIL Ratings has outstanding ratings for 11 Vedanta group entities including ESL Steel Ltd, Talwandi Sabo Power Ltd, and Sesa Resources Ltd—all of which have been reaffirmed.
The agency also emphasized:
“Crisil keeps all its outstanding ratings under continuous surveillance. The ratings continue to be supported by the strength of the business risk profiles of their Indian operations and healthy financial performance.”
ICRA highlighted the Group’s commitment to debt reduction, with leverage improving to 2.5x in FY2025, compared to 3.2x in FY2024. It expects profitability in core verticals like aluminium and zinc to further improve financial metrics.
The agencies’ top-tier ratings refute Viceroy’s claims, instead showcasing Vedanta’s resilience, credibility, and capacity to meet all financial obligations. The recent refinancing of VRL’s debt has further smoothed maturity profiles and is expected to reduce finance costs starting FY2026.
What Do These Ratings Mean?
- AAA (for Hindustan Zinc): Highest safety, lowest credit risk
- AA (for Vedanta): High safety, very low credit risk
These ratings are a clear marker of Vedanta’s stability, particularly at a time when market speculation sought to cast doubt. The reaffirmation is not just symbolic—it is a robust endorsement from industry watchdogs that know the numbers best.
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