Vedanta – Meet the Agarwals – Runaya Green Tech

Author: Viceroy Research Published on: July 29, 2025 Published in: Vedanta (NSE:VEDL)

July 29, 2025 – At this point it feels like we’ve written the same report multiple times. An Agarwal-owned entity is siphoning value out of Hindustan Zinc Limited (HZL), a Vedanta Limited (VEDL) subsidiary already crippled by mismanagement.

Runaya Green Tech appears to operate as an integrated HZL subsidiary, despite being 100% owned by the Agarwal family. It performs strategic processing functions at high margins to enrich the Agarwal family promoter group. This is margin theft, and constitutes fraud.
HZL appears to pay both to process its own waste and to buy back the recovered material, resulting in margin duplication and long-term economic loss to the listed company.
Runaya Green Tech is reliant on financing from HZL in order to engage in capital projects. This includes advances from HZL.
Over 90% of Runaya Green Tech’s revenue and payables are with HZL, with 121 days of receivables and 219 days of payables. This reflects group-level financial integration, not independent commercial activity. Green Tech’s functions should be conducted by HZL.
Runaya Green Tech records gross margins of 44.5% and operating margins over 16%, implausibly high for a dross and residue processor. This suggests deeply subsidized input pricing or suppressed cost recognition
Like the rest of the Runaya Group, Runaya Green Tech changed hands in August 2022 when Anil Agarwal seized the structure from his brother Navin’s family.
India Ratings and Research (Ind-Ra) rated Runaya Green Tech for five years without addressing the underlying conflict. The only risk they identified was that the promoters and Anil Agarwal might extract too much from VEDL too quickly.

HZL’s greatest loss is not the margin it forfeits to Agarwal-owned vendors like Runaya Green Tech today, it is the future value of the businesses it has handed away. Rather than building long term capabilities in waste recovery, metal reclamation, and circular resource management, HZL has ceded these to promoter-controlled entities.

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