1. At a Glance
Vedanta Semiconductors Pvt Ltd (VSPL) booked ₹416 Cr in revenue trading metals on paper—without chips, factories or employees—while holding ₹2,500 Cr debt. Parent Vedanta Ltd, meanwhile, flaunts ₹20,535 Cr net profit in FY25 and a 113% dividend payout. Coincidence? Or financial fusion dance?
2. Introduction with Hook
Imagine calling yourself a semiconductor company with no semiconductors. Just paper. Just copper. Just commodity circles.
- VSPL’s revenue FY25: ₹416 Cr.
- Vedanta Group’s declared interim dividend via HZL: ₹4,225 Cr (July 2025).
- Promoter pledging? 100%. And promoter holding dropped from 69.68% to 56.38% in 2 years.
Nothing says “trust us” like reverse leverage yoga.
3. Business Model – WTF Do They Even Do?
Vedanta Ltd = India’s mining overlord.
- Aluminium: 46% market share, ₹58,000+ Cr biz.
- Zinc, Oil, Gas, Iron Ore: Spread across 6 countries.
- Glass in Taiwan, Ports in India, Power in Jharsuguda.
But… semiconductors? Enter VSPL—a 2023 baby, trading commodities, borrowing big, lending bigger. Chips? Not even chiplets.
4. Financials Overview
| FY25 (Consolidated) | Amount (₹ Cr) |
|---|---|
| Revenue | ₹1,52,968 |
| Net Profit | ₹20,535 |
| EBITDA | ₹42,343 |
| Dividend Payout | 113% |
| Borrowings | ₹91,479 |
| Promoter Pledge | 100% |
| Promoter Holding (Jun 2025) | 56.38% |
If business is booming, why is the cash flow trickling from shell subsidiaries?
5. Valuation
- Current Market Cap: ₹1.77 Lakh Cr
- Stock P/E: 12.8
- Dividend Yield: 9.58% (insanely generous, but is it sustainable?)
Fair Value Range (Ex-VSPL shenanigans):
₹430 – ₹510/share (assuming earnings normalize, chip fog clears)
If VSPL = full scam?
FV falls to ₹350–₹390, especially if regulators pull the power plug.
6. What’s Cooking – News, Triggers, Drama
- Jul 2025: Viceroy Research drops 87-page bomb—VSPL is a dummy vehicle.
- 18 Jul: Vedanta gets ex-CJI to say “Nothing to see here.”
- Dividend declared: ₹4,225 Cr from Hindustan Zinc.
- Promoter pledging: All 56.38% encumbered.
- FII & DII share rising: Institutions smelling blood—or undervaluation.
The script is hotter than a Tollywood courtroom thriller.
7. Balance Sheet – Vedanta Ltd FY25
| Particulars | Amount (₹ Cr) |
|---|---|
| Total Assets | ₹1,99,940 |
| Borrowings | ₹91,479 |
| Equity Capital | ₹391 |
| Reserves | ₹40,821 |
| Investments | ₹14,532 |
| Fixed Assets | ₹99,905 |
| CWIP | ₹33,896 |
Key Callouts:
- Reserves fell in FY23 (₹39,051 Cr) but rebounded in FY25—thanks to dividends from zinc and… mysterious routing?
- CWIP spike = Delay in capex? Misalignment in project disclosures?
8. Cash Flow – FY25
| Cash Flow Type | Amount (₹ Cr) |
|---|---|
| Operating Cash Flow | ₹39,562 |
| Investing Cash Flow | ₹(19,158) |
| Financing Cash Flow | ₹(19,223) |
| Net Cash Flow | ₹1,181 |
What’s fishy?
Despite huge profits, cash from financing is massively negative. Because it’s funding dividends from internal debt?
9. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE (FY25) | 38.5% |
| ROCE | 25.3% |
| Stock P/E | 12.8 |
| D/E | ~2.2x |
| Dividend Yield | 9.58% |
| Promoter Pledge | 100% |
Verdict:
Core biz = sexy
Chip biz = stressy
Overall = borderline bipolar
10. P&L Breakdown – FY25
| Item | ₹ Cr |
|---|---|
| Revenue | ₹1,52,968 |
| Expenses | ₹1,10,625 |
| Operating Profit (EBITDA) | ₹42,343 |
| Net Profit | ₹20,535 |
| Other Income | ₹5,544 |
| Interest Cost | ₹9,914 |
| Depreciation | ₹11,096 |
Note: ₹5,544 Cr “other income” deserves a Netflix doc by itself.
11. Peer Comparison
| Company | CMP ₹ | P/E | ROE % | Div Yield | MCap ₹ Cr |
|---|---|---|---|---|---|
| Vedanta | 455 | 12.8 | 38.5 | 9.58% | 1,77,903 |
| Hindustan Zinc | 670 | 14.1 | 34.0 | 7.2% | 1,41,000 |
| NALCO | 146 | 11.5 | 18.9 | 5.5% | 26,500 |
| JSW Steel | 905 | 16.3 | 20.4 | 1.4% | 2,15,000 |
Vedanta’s P/E is cheap—but the drama isn’t.
12. Miscellaneous – Shareholding, Promoters
| Category | Sep 2022 | Jun 2025 |
|---|---|---|
| Promoters | 69.68% | 56.38% |
| FIIs | 8.09% | 10.60% |
| DIIs | 10.37% | 16.47% |
| Public | 11.57% | 16.35% |
Flag:
Promoters dumped 13.3% in 2.5 years. FII + DII filled the gap. But why exit a “semiconductor future”?
13. EduInvesting Verdict™
Vedanta’s core business is rock solid—literally. Aluminium, zinc, power = Cash Machines. But the semiconductor saga raises big questions:
- Was VSPL created to build chips or ship dividends?
- Was ₹2,500 Cr structured debt or structured drama?
- Can India’s regulators decode this chipset story before shareholders get fried?
Until the smoke clears, this is more Vedanta VFX than Silicon Valley.
Metadata
– Written by EduInvesting Team | July 22, 2025
– Tags: Vedanta, VSPL, Semiconductor Scam, Anil Agarwal, Viceroy Research, Screener Data, ChipGate, HZL, Dividend Routing
