Aditya Birla Group firm Hindalco Industries Ltd.'s shares will be in focus on Wednesday, May 21, after the metals major posted a sharp beat in its earnings for the March quarter of FY2025.
Hindalco Industries posted a 66.4 percent year-on-year jump in consolidated net profit at Rs 5,283 crore for the January–March quarter, surpassing Street expectations, aided by lower input costs and supportive macroeconomic conditions.
The Aditya Birla Group company reported a 15.9 percent rise in consolidated revenue to Rs 64,890 crore in Q4FY25 compared to the same quarter last year.
The firm's India operations’ adjusted EBITDA increased 11 percent QoQ to Rs 5,350 crore owing to higher aluminium prices, improved VAP mix, lower CoP and higher alumina sales volume, partially offset by lower copper profits.
Should you buy, sell or hold Hindalco shares?
Hindalco posted a decent performance in 4QFY25. The earnings growth was driven by favorable pricing and lower input costs. Novelis' performance rebounded in Q4, which was hurt by higher scrap prices and weak demand in Q3, noted domestic brokerge Motilal Oswal.
"We expect a healthy consolidated performance for FY26/27E, mainly driven by the strong domestic operations. The ongoing capex in Novelis will establish Hindalco as the global leader in the
beverage can and automotive FRP segments," added the brokerage, maintaining its 'buy' rating, with a price target of Rs 790 per share.
Nuvama Institutional Equities said, "Aluminium profitability is likely to decrease QoQ in Q1FY26E due to lower aluminium prices. Novelis shall be affected amid US tariffs. As the company is in capex mode, we do not estimate any deleveraging, but net debt (FY26E net debt/EBITDA: 1.1x) is comfortable." The broking house reiterated its 'buy' rating, with an unchanged target price of Rs 776 per share.
Emkay Global upgraded Hindalco to 'reduce' from 'sell' and raised its target price by eight percent to Rs 650, from Rs 600 earlier. 'With major concerns largely priced in and a structurally positive outlook on LME aluminium, we believe a 'sell' is no longer warranted and therefore moving to a neutral stance," said the brokerage.
"We believe Hindalco's cost leadership, combined with our structurally positive outlook on LME aluminium prices, positions it well to sustain its strong through-the-cycle performance, with expansion in EBITDA/t, from $822 in FY24 to $1,194 by FY27E in the upstream segment," it added. "Moreover, key concerns around scrap costs, Novelis' margins, negative copper TC/RCs, and valuation excesses appear to be fully priced in."
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