The shares of metals-to-oil conglomerate Vedanta dropped more than 8 percent on January 30 after the company released its results for the third quarter of the ongoing financial year 2026. Brokerages have mixed views for the stock.

The shares of the company dropped to Rs 702.4 apiece in the morning trading hours of Friday to snap a six-session gaining streak. This comes a day after the stock hit a fresh 52-week high of Rs 769.80 apiece.

Notably, today’s sharp fall in Vedanta’s share price also comes amid a broader downturn in metal stocks, buoyed by profit booking, falling metal prices and speculation of a hawkish Federal Reserve Governor. The Nifty Metal index tumbled nearly 5 percent today.

Vedanta Q3 Results:

Vedanta on January 29 reported a consolidated net profit of Rs 5,710 crore for the October-December quarter of FY26, marking a 61 percent year-on-year (YoY) jump from the Rs 3,547 crore net profit reported in the same period of the previous financial year.

The firm’s revenue from operations meanwhile rose 37 percent YoY to Rs 23,369 crore during the quarter under review. “Q3 FY26 has been a landmark quarter for Vedanta, delivering our highest-ever EBITDA of ?15,171 crore, with two of our businesses achieving their best-ever financial results. Aluminium posted its strongest EBITDA margin of $1,268 per ton, supported by record alumina and aluminium production. Zinc India recorded its highest-ever quarterly EBITDA of ?6,064 crore, driven by record mined and refined metal output, with silver contributing 44% of overall profit. Zinc International also reported a 28% YoY increase in production, led by Gamsberg achieving its highest-ever recovery,” said Arun Misra, Executive Director, Vedanta.

“Our Oil & Gas business reached a major milestone with India’s first subsea template installation, while our Thermal Power Business delivered 188% YoY EBITDA growth with a 62% increase in sales volumes. Steel and Ferrochrome Business also achieved record production of steel billets at 285 kt, and ferrochrome output up 32% YoY,” he added.

Brokerages on Vedanta:

ICICI Direct Research said that Vedanta’s overall performance for the quarter was aided by higher aluminium, zinc and silver prices, but any cool-off in non-ferrous metal prices and silver could potentially led to stock price decline.

Motilal Oswal Financial Services kept a ‘Neutral’ rating on the shares of Vedanta, with a target price of Rs 810 apiece. This implies an upside potential of nearly 6 percent from the stock’s previous closing price of Rs 766.35 apiece.

The domestic brokerage said that Vedanta’s Q3 operational performance came largely as expected, supported by better volumes and favorable LME prices. “Capex plans are progressing well and will likely lead to further cost savings. Management targets to maintain strong growth in earnings, led by the upcoming capacity, which will produce higher VAP products. VEDL remains firm on its deleveraging plans, and going forward, higher cash flows will support both its expansion plans and deleveraging efforts,” it added.

The stock currently trades at 7x EV/EBITDA and 4.4x P/BV on the FY27 estimate, Motilal said.

Emkay Global kept a ‘Buy’ call on the stock, and increased its target price over 21 percent to Rs 850 apiece. The domestic brokerage said that the firm’s strong Q3 results were driven by higher aluminium and zinc profitability.

“We continue to believe that if there was ever a better time in the past decade to own exposure to industrial metals, it is now,” it added.