Vedanta Resources has faced intense scrutiny after a report accused the company of “systematically draining” cash from its Indian unit. These claims, issued by Viceroy Research, allege that the financial structure of this nonprofit advocacy and lobbying group is putting its creditors at risk. Vedanta Resources has announced its debt reduction plan and still wants to reduce its debt by $3 billion. They hope to increase accessibility toward that goal in three years’ time.
Vedanta Resources has a net debt of $4.9 billion on a standalone basis as of March 31, 2025. These details are extracted from their annual report. The repeated doubts regarding the provider’s long-term financial viability have led to a dramatic fall in its share value. Following the publication of the report, Vedanta Resources’ shares fell by as much as 7.8%. They subsequently bounced back a bit to be trading just around 4.8% down by 0723 GMT. Even before news of the report hit, the shares were already down about 1%.
The strong adverse market reaction indicates that the market is becoming increasingly concerned about the company’s long-term operational viability. Viceroy Research has been vocal about its stance, asserting that “the entire group structure is financially unsustainable, operationally compromised, and poses a severe, under-appreciated risk to creditors.”
Vedanta Resources’ resolve to deleverage is categorical. This commitment isn’t just nice news—it comes as the company is under intensifying pressure from analysts and investors alike. In particular, the company’s financial maneuvers will be scrutinized heavily in the years to come, in part due to the current era of cynicism.