Hindalco soars 6% on strong Q1 results; brokerages see upto 13% more upside

Hindalco stock jumped 6% on Wednesday after the company delivered robust results driven by a strong performance by the India business, and a resilient performance by Novelis.

Hindalco Industries share price today

 

Shares of Hindalco Industries soared 6 per cent to ₹705 on the BSE in Wednesday’s intra-day trade on the back of a near two-fold jump in average trading volumes after the company reported strong June quarter earnings.

 

At 11:19 AM; the stock price of the aluminium company was quoting 5.5 per cent higher at ₹703.3, as compared to 0.28 per cent rise in the BSE Sensex. A combined 7.25 million shares changed hands on the NSE and BSE.  CATCH LATEST STOCK MARKET UPDATES LIVE

Q1 results – Hindalco

 

Hindalco Industries, the Aditya Birla Group metals flagship, reported 9 per cent year-on-year (Y-o-Y) growth in consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) at ₹8,673 crore. Net profit increased by 30 per cent Y-o-Y to ₹4,004 crore. Revenue was up 13 per cent Y-o-Y at ₹64,232 crore.

 

 

The earnings growth was primarily driven by favorable pricing. The company said robust results were driven by a strong performance by the India business, and a resilient performance by Novelis. India Aluminium Upstream business delivered an EBITDA of ₹4,080 crore, up 17 per cent, while Aluminium Downstream achieved a record EBITDA of ₹229 crore, up 108 per cent compared to Q1FY25.  ALSO READ | Hyundai Motor jumps 5% in two days after Goldman Sachs Initiates with 'Buy'

Brokerages view on Hindalco 

 

The long-term outlook for Hindalco continues to remain buoyant given resilient performance by India's aluminium operations; record high run rates in the copper business; enhanced coal security post acquisition of Meenakshi, Meenakshi west, Bandha, Chakla coal mines and growth capex to augment capacity in downstream business. Hindalco, given ~70 per cent plus steady/strong EBITDA being non-LME linked, remains a preferred play in the metal space, said analysts at JM Financial Institutional Securities in the Q1 result update. The brokerage firm reiterated its ‘Buy’ rating on the stock with a target price of ₹800, implying 13 per cent more upside.

 

Novelis' earnings outlook is expected to remain soft in Q2, led by the tariff implications, but is likely to rebound in H2, driven by its mitigation plans. Additionally, we anticipate that strong domestic earnings will manage to offset the muted Novelis profitability for FY26. The ongoing capex in Novelis will establish Hindalco as the global leader in the beverage can and automotive FRP segments. Moreover, the commissioning of Bay Minette will reduce the import dependency and free up other US capacities for high-margin products, Motilal Oswal Financial Services said. The brokerage firm in the Q1 result update said it largely retains estimates and reiterates a 'Buy' rating on Hindalco with an SoTP-based target price of ₹790.

 

Analysts at PL Capital believe Novelis’ 9MFY26 to be impacted due to the tariffs and weak macro, however as the management. is taking mitigation initiatives along with higher MJP and stable scrap prices, EBITDA should improve gradually.  The brokerage firm maintains an ‘Accumulate’ rating with revised target price of ₹762 (earlier ₹738), valuing Novelis at 6.5x & standalone ops at 5.5x EV of Mar’27E EBITDA.   ALSO READ | Allcargo Logistics shares tumble 6% on Q1 loss; check details here

About Hindalco Industries

 

Hindalco Industries is the world’s largest aluminium company by revenues, and the world’s second largest Copper rods manufacturer (outside China). Hindalco operates across the value chain, from bauxite mining, alumina refining, coal mining, captive power plants and aluminium smelting to downstream rolling, extrusions, and foils. Along with its subsidiary Novelis, Hindalco is the global leader in flat rolled products and the world’s largest recycler of aluminium.