**Market Brief: Vedanta Shares Correct Sharp 8% Despite Record Q3** **Market Action** Vedanta Limited shares plunged over **8%** in intraday trade on January 30, 2026, hitting lows near **₹702**. The sharp correction snaps a six-day winning streak and comes immediately after the company reported its highest-ever quarterly operational numbers. **Record Q3 FY26 Performance** On January 29, Vedanta announced standout earnings for the quarter ended December 2025: * **Record EBITDA:** Surged **34%** YoY to an all-time high of **₹15,171 crore**. * **Consolidated Net Profit:** Jumped **60%** YoY to **₹7,807 crore**. * **Revenue:** Rose **19%** to **₹45,899 crore**, driven by firm commodity prices and volume expansion. * **Margins:** EBITDA margins expanded significantly to **41%** (up **629 bps**). * **Deleveraging:** Net Debt-to-EBITDA ratio improved to **1.23x**, signaling balance sheet strength. **Why the Fall?** Despite the "blockbuster" earnings, three key factors triggered the sell-off: 1. **Profit Booking:** The stock had rallied **~77%** over the last year, touching a 52-week high of **₹769** just before results. Investors utilized the good news to lock in gains ("sell on news"). 2. **Sector Meltdown:** A broad-based crash in global commodities weighed heavily. Silver prices collapsed **6%**, while Copper and Gold fell **3–4%**, dragging the Nifty Metal Index down by over **5%**. 3. **Supply Pressure:** Market sentiment was dampened by Vedanta’s ongoing Offer for Sale (OFS) in subsidiary **Hindustan Zinc**, coupled with general liquidity absorption in the metal space. **Brokerage Verdict** Analysts remain bullish on the long-term story, citing the upcoming demerger and operational efficiencies. * **Investec:** Raised target price to **₹930**. * **Citi:** Hiked target to **₹900**, maintaining a 'Buy' rating. * **Motilal Oswal:** Retained 'Neutral' with a target of **₹810**, citing valuation concerns. **Key Monitorable** The company confirmed its demerger process is on track, with the listing of five independent entities expected by **May 2026**. This remains the primary value-unlocking trigger for long-term investors.