Hindalco delivered exceptional first-quarter results that significantly outperformed analyst expectations, with consolidated net profit surging 75% year-on-year to a record high of ₹7,007 crore for Q1 FY27. However, Hindalco shares declined 2.03% to ₹1,056.60 at 09:26 am on Thursday despite the strong earnings beat, as reported by Moneycontrol. The company achieved revenue from operations of ₹84,825 crore, up 32% from ₹64,232 crore in the corresponding quarter of FY26, marking an all-time high. Earnings Per Share (EPS) for June 2026 stood at 31.58, up from 11.70 in March 2026, demonstrating robust operational performance across all business segments.
The company's India operations demonstrated exceptional performance during the quarter, with upstream aluminium revenue reaching ₹134 billion in Q1FY27, up 44% year-on-year, as reported by Motilal Oswal. EBITDA for the India aluminium business reached ₹73.9 billion, up 81% year-on-year with $2,331 per tonne. The copper business also contributed positively, with revenues reaching ₹172 billion, up 16% year-on-year, benefiting from higher average copper prices in the market. According to The Economic Times, Managing Director Satish Pai noted that the company started FY27 with record revenue, EBITDA and profit, supported by the India business and improved profitability at Novelis.
The international operations through Novelis also contributed significantly to the overall performance, with Novelis revenue standing at $5.8 billion, up 23% year-on-year and 21% quarter-on-quarter, against the estimated $4.8 billion. Adjusted EBITDA reached $516 million, up 24% year-on-year and 12% quarter-on-quarter, driven by lower aluminium scrap prices and cost efficiencies. As reported by The Economic Times, the performance was partially offset by a 33kt estimated shipment loss related to Oswego production disruption from fire-related issues. The recovery at Novelis was a key factor in the overall strong quarterly performance.
Despite the share price decline, leading global brokerages have maintained bullish stances on Hindalco with raised target prices. Motilal Oswal raised its target price to ₹1,220 from ₹1,200, maintaining its 'Buy' rating while expecting the company's earnings in the second half of FY27 to remain softened due to recent aluminium price reversal to $3,200/t from a peak of $3,850/t during the Middle East crisis. JM Financial also maintained its 'Buy' rating, noting that the company's earnings beat was primarily driven by a stronger-than-expected India Aluminium business. HSBC maintained its 'Buy' rating with a street-high target price of ₹1,430, while UBS retained its 'Buy' call with a target of ₹1,325. Jefferies maintained a more cautious 'Hold' rating with a target of ₹1,100.
