Hindalco Industries shares slide 6% even as India operations meet estimates

Hindalco Industries posted consolidated profit after tax (PAT) of ₹2,049 crore in Q3FY26, down from ₹3,735 crore a year earlier

Shares of Hindalco Industries Ltd. fell over 6 per cent on Friday as concerns around its overseas business weighed on sentiment, after the company reported a 45 per cent year-on-year (Y-o-Y) decline in consolidated profit for the December quarter.

 

The company's stock fell as much as 6.26 per cent during the day to ₹904 per share, the biggest intraday decline since February 1 this year. Hindalco Industries stock pared losses to trade 5.8 per cent lower at ₹908.8 apiece, compared to a 1.02 per cent decline in Nifty 50 as of 09:50 AM. 

 

Shares of the company fell for the third straight session and currently trade at 1.3 times the average 30-day trading volume, according to Bloomberg. The counter has risen 2.5 per cent this year, compared to a 2.1 per cent decline in the benchmark Nifty 50. Hindalco Industries has a total market capitalisation of ₹2.04 trillion.   CATCH STOCK MARKET UPDATES TODAY LIVE

 

Hindalco Industries Q3 results 

The Aditya Birla Group company posted consolidated profit after tax (PAT) of ₹2,049 crore in Q3FY26, down from ₹3,735 crore a year earlier. The decline was largely due to exceptional expenses of ₹2,610 crore linked to the Oswego incident. The company's India business, a key driver of growth, touched an all-time high PAT of ₹3,581 crore, up 24 per cent, during the quarter.

 

Consolidated revenue rose 14 per cent to ₹66,521 crore, supported by higher metal prices and strong momentum in the India business. Ebitda increased 5 per cent to ₹8,543 crore, indicating steady operating performance even as Novelis faced lower volumes and disruption-related constraints.

Analysts on Hindalco Industries earnings 

Motilal Oswal said Hindalco Industries reported an in-line consolidated performance in the third quarter of FY26, with earnings growth largely driven by favourable pricing. The brokerage noted that the earnings outlook for the Indian business remains strong. However, the overall business outlook has weakened due to the Oswego fire incident and higher costs related to the Bay Minette project.

 

The brokerage has maintained its consolidated earnings estimates, with robust domestic performance expected to offset subdued profitability at Novelis for the FY26 and FY27. It has reiterated its 'Buy' rating on the stock with a target price of ₹1,110.  ALSO READ | HAL's ₹2.4 trn order book to propel manufacturing revenue, say analysts 

Analysts at JM Financial noted that net debt increased significantly to ₹59,400 crore in Q3FY26 from ₹41,400 crore in the second quarter. The rise was driven by an increase in net debt at Novelis and an infusion by the parent entity through a debt raise. Additionally, higher working capital requirements in the copper business led to an increase of about ₹4,000 crore in debt.

 

However, the brokerage believes the current strength in London Metal Exchange (LME) prices is likely to support the company’s earnings trajectory. It also highlighted improved raw material security following the acquisition of the Meenakshi, Bandha and Chakla mines. JM Financial has maintained its 'Buy' rating on the stock.

 

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