Hindalco Industries shares dropped 2.44% to a low of Rs 1,082.10 on the NSE after it reported a sharp drop in its bottom line for the fourth quarter of FY26. However, the domestic brokerage house, JM Financial, raised its target price on the stock and maintained a ‘Buy’ rating as operating performance came higher than expectations, led by Novelis.
JM Financial on Hindalco Industries
JM Financial raised the target price on Hindalco Industries to Rs 1,310 from Rs 1,210, implying an upside of 18% from the current market price.
The EBITDA performance came higher than expectations, which was driven by Rs 1,200 crore outperformance in Novelis – largely optical, as $577 million of fire-related losses were booked below the EBITDA line.
Also, the company’s Rs 250 crore in India Copper beat expectations, driven by elevated sulphuric acid prices; India Aluminium (including Utkal) was broadly in line at Rs 5700 crore.
India’s cost of production is expected to be 5% higher in Q1 FY27, driven by furnace oil and Calcined Petroleum (CP) Coke. Secondly, its FY27 hedging and Copper EBITDA are expected at similar levels in Q1 FY27, but may moderate to Rs 600-700 crore in Q2 and Q3 FY27 if sulphuric acid prices correct.
Lastly, its consolidated net debt is expected to peak at Rs 80,000-90,000 crore over two years with Net Debt to EBITDA below 2x.
Hindalco Industries Q4FY26
The company’s net profit for the reporting quarter fell 51% year-on-year (YoY) to Rs 2,597 crore in the fourth quarter of FY26, compared to Rs 5,283 crore recorded in the same quarter a year back. The company stated that the disruption in Oswego affected profitability for the quarter, although this was somewhat mitigated by cost efficiency measures at Novelis and all-time high profits from the operations in India.
The company reported a consolidated revenue from operations of Rs 78,133 crore in Q4 FY26, up 20% You from Rs 64,890 crore in the corresponding quarter last year. Its consolidated EBITDA rose 9% YoY to a record high of Rs 11,197 crore compared with Rs 10,296 crore a year back.
Also, the company’s board recommended a final dividend of Rs 5 per share for FY26. The record date for payment of the final dividend is July 10.
Novelis, the company’s global aluminium rolling and recycling subsidiary, reported adjusted EBITDA per tonne of $544 during the quarter, up 10% year-on-year despite lower shipment volumes.
For the whole of FY26, the company posted a consolidated revenue of Rs 2.74 lakh crore, up 15% from Rs 2.38 lakh crore in FY25. Annual consolidated EBITDA rose to an all-time high of Rs 38,097 crore compared with Rs 35,496 crore in the previous financial year.
Hindalco Industries’ share price performance
The share price of Hindalco Industries has risen 5.5% in the last five trading sessions. The stock has surged 4.5% in the past one month. It has given a return of almost 41% in the last six months. Hindalco Industries’ share price has increased 68% over the previous 12 months.