Vedanta Aluminium shares rise 2% as firm expands automotive portfolio with two advanced alloys. What’s ahead?

Shares of Vedanta Aluminium Metal gained more than 2% on Friday after the metals major announced that it is expanding its automotive solutions portfolio with the launch of two advanced offerings under its best-selling Primary Foundry Alloy (PFA) range.

The company, which demerged from its parent Vedanta earlier this year, announced on Thursday that it is launching a copper-doped alloy, developed for high-performance automotive applications, and the Vedanta Foundry Alloy (VFA), a versatile material for enhanced durability, developed in collaboration with IIT Delhi.

Vedanta Aluminium’s two new offerings were unveiled at AutoEdge 2026, the company’s exclusive conclave for the automotive industry. The shares of the company increased more than 2% to trade at Rs 444.65 apiece on NSE on Friday morning.

What Vedanta Aluminium Metal said

The aluminium producer said it is poised to become the world’s largest primary billet producer with a capacity of 1.25 million tonnes per annum (MTPA), after the ongoing capacity expansion at its BALCO plant in Chhattisgarh’s Korba is completed. Additionally, the company claims to be India’s largest PFA producer with an existing capacity of 380 kilo tonnes per annum (KTPA).

Its automotive portfolio comprises PFA offerings used in alloy wheels, cylinder heads, engine components and other automotive castings, along with specialised billets for HVAC applications and crash-resistant engineering applications. In addition, the company is expanding the share of value-added products in its portfolio to 90%, driven by increasing demand for high-quality, sustainably produced aluminium in India and globally.

Vedanta Aluminium CEO Rajesh Kumar said India’s automotive industry is rapidly evolving, creating demand for lighter, stronger and more sophisticated material solutions. He noted that aluminium is uniquely positioned to meet these parameters through its versatile combination of lightweighting, strength, durability, resistance to corrosion, and high recyclability.

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“At Vedanta Aluminium, we are strengthening our automotive-grade portfolio with advanced next-generation metals that are fully developed and manufactured in India while meeting world-class performance benchmarks. These innovations reinforce our commitment to the Make in India effort, building globally competitive manufacturing capabilities within the nation,” he added.

What lies ahead for Vedanta Aluminium share price?

Vedanta Aluminium was the only large-cap stock among the four companies spun off from Vedanta under its mega demerger and debuted in June. It debuted at Rs 522 apiece on the NSE, surpassing its parent company in terms of market capitalisation. However, the stock has now fallen around 15% since then to trade at Rs 444.65 apiece today. The company currently has a market capitalisation of nearly Rs 1.73 lakh crore.

Domestic brokerage firm Systematix Institutional Equities earlier this month initiated coverage on the shares of the company with a Buy rating and a target price of Rs 598 apiece. Backward integration is set to drive the newly-demerged company’s next earnings cycle, as per the brokerage.

CLSA has an ‘Outperform’ rating on the shares of Vedanta Aluminium, with a target price of Rs 540 apiece, while Citi has a ‘Buy’ call on the shares of Vedanta Aluminium, with a target price of Rs 525 apiece

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(With inputs from agencies)

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