Hindalco snaps 6-day winning streak post Novelis Q1; Emkay sees 11% upside

Hindalco share price: Hindalco Industries shares slipped 2 per cent in trade on Thursday after its US subsidiary Novelis Inc reported numbers for the June quarter of FY27.

 

Novelis said that its consolidated net income stood at $164 million in the June quarter, up 70.8 per cent on an annualised basis. The company said that the PAT was driven by strong execution, favourable market trends and continued demand for sustainable aluminum solutions. The firm had posted a consolidated net income of $96 million in the year-ago period.

 

The aluminium producer's net sales rose to $5,793 million in the reporting quarter from $4,717 million in the year-ago period.

 

 

Back home, Hindalco shares slipped 2 per cent to hit an intraday low of ₹1,016 on the National Stock Exchange (NSE).

 

As of 10:20 AM, the stock was trading 1.06 per cent lower at ₹1,029, with 2.6 million shares changing hands.

 

Today’s decline marks the stock’s first fall after six consecutive sessions of gains, during which it rallied nearly 11 per cent.

 

Hindalco shares have emerged as one of the standout performers in recent years. Thus far in 2026, the stock has gained 15 per cent, while the Nifty 50 has declined nearly 6 per cent. In one year, Hindalco has appreciated 50 per cent, compared with a largely flat performance by the benchmark index. Over three years, the stock has surged 125 per cent, outperforming the Nifty’s 26 per cent gain.

 

Emkay keeps 'Add' on Hindalco Industries 

 

Post Novelis’ earnings, Emkay Research has maintained its ‘Add’ rating on Hindalco Industries with a target price of ₹1,150. The target implies an upside of nearly 11 per cent from the previous close of ₹1,039.

 

The brokerage said Novelis delivered a strong first quarter, with adjusted Ebitda of $516 million, 5.7 per cent above its estimate. Ebitda/t stood at $563. Even after adjusting for the $18 million net benefit from the Oswego fire, underlying Ebitda/t remained healthy at $525. 

 

The management has retained its medium-term normalised Ebitda-per-tonne guidance of around $600.

 

Analysts expect the earnings drag from Oswego to recede as operations normalise, while insurance proceeds and normalisation of elevated inventories should support cash conversion.

 

The brokerage, however, cautioned against extrapolating the strong first-quarter profitability, as favourable scrap spreads provided a meaningful tailwind and may not sustain at current levels.

 

Meanwhile, the brokerage noted that the commissioning process of Bay Minette is underway and its transition from construction to production is expected by November this year, with commercial shipments expected to commence in Q1 of FY28.

 

"As Bay Minette capex also winds down, Novelis expects to turn FCF-positive by Q4 FY27," Emkay said.

 

Novelis reported net debt of $7.9 billion in June 2026, with net debt-to-Ebitda rising to 4.5x from 4.1x in March 2026.  ======================================================= 

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