Hindalco surges 6% post Q1 profit; Axis Securities retains ‘Buy’ rating; know why

Hindalco Industries Ltd shares jumped 6 per cent in Wednesday’s trade after the aluminium manufacturer reported a 30 per cent year-on-year (YoY) surge in net profit to Rs 4,004 crore for the June quarter, up from Rs 3,074 crore in the corresponding period last year.

At 11:36 am, the stock was trading 4.81 per cent higher at Rs 699. Earlier, it had surged 5.7 per cent to hit a high of Rs 705 over its previous close of Rs 666.95. The scrip climbed nearly 29 per cent from its 52-week low of Rs 546.25 apiece. Shares of Hindalco Industries rose over 10 per cent in the past six months.

Consolidated revenue from operations for the quarter climbed 12.7 per cent year-on-year to Rs 64,232 crore, against Rs 57,013 crore in the same period last year.

Axis Securities said Hindalco’s Indian operations remained resilient, offsetting the weakness in Novelis due to tariff impact. The brokerage noted that Q1FY26 consolidated revenue came in line with estimates, while EBITDA at Rs 8,075 crore was a 10 per cent beat, led by strong aluminium performance. 

“Underlying PAT stood at Rs 4,004 crore, up 18 per cent YoY but down 24 per cent QoQ, a 13 per cent miss led by higher EBITDA,” Axis Securities said.

“Expansion projects will be completed by keeping the net debt/EBITDA at 1.5x in India and 2.0x at the consolidated level when the Capex peaks in FY27-28. With the strong Indian balance sheet, Hindalco’s capital allocations towards upstream assets look well placed, in our view. Our EBITDA for FY26 is revised slightly upwards as we factor in higher downstream EBITDA, while the FY27E change is not material,” Axis Securities added.

The brokerage maintained its ‘Buy’ rating on the stock with a target price of Rs 770, implying a 15 per cent upside from the previous close. It expects Hindalco’s downstream aluminium shipments to ramp up as new capacities at Silvassa and Aditya FRP-2 come onstream, while the copper segment will benefit from a richer product mix and upcoming scrap recycling projects.

Among technical indicators, the scrip is trading above its 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The stock is among the top gainers on the BSE largecap.