According to latest reports, Hindalco Industries delivered strong Q4 FY26 results with consolidated net profit rising 26.7% quarter-on-quarter to ₹2,597 crore, compared to ₹2,049 crore in the previous quarter. However, the company's year-on-year performance showed a significant decline of 51% from the same quarter last year, missing analyst expectations. The company demonstrated robust operational performance with consolidated revenue from operations advancing 17.5% QoQ to ₹78,133 crore, up from ₹66,521 crore in Q3 FY26. EBITDA meanwhile surged 25.3% QoQ to ₹10,018 crore, with EBITDA margin improving to 12.8% from 12% in the previous quarter. The company achieved its highest quarterly revenue in recent history with net sales surging to ₹78,133 crore, marking a 17.46% sequential growth from Q3 FY26's ₹66,521 crore and 20.41% year-on-year growth from Q4 FY25's ₹64,890 crore.
The company's year-on-year profit decline was primarily attributed to a one-time expense of ₹4,141 crore due to a fire at its Novelis subsidiary's Oswego plant. As reported by Upstox Securities, this fire incident significantly impacted the company's bottom-line performance despite strong operational metrics. The company attributed the profit decline to Oswego disruption impacting profitability during the quarter, though this was partly offset by cost efficiency measures at Novelis and record profits from the India business. The strong India business performance helped drive the overall EBITDA growth despite the operational challenges from the fire incident. Novelis reported a quarterly loss of $84 million after the fire disrupted operations and reduced shipments, with quarterly shipments declining 12% though revenue rose 4% to $4.8 billion due to higher global metal prices.
Despite the overall profit decline, Hindalco's India aluminium business delivered exceptional performance across key segments. Upstream aluminium shipments rose to 339,000 tonnes from 332,000 tonnes a year earlier, helping segment revenue increase 11% to ₹11,418 crore. EBITDA from the segment climbed 13% to ₹5,448 crore, while EBITDA per tonne improved to $1,756. The domestic downstream aluminium business also performed strongly, with sales volumes rising 18% to 124,000 tonnes and revenue jumping 35% to ₹4,867 crore. This robust performance helped offset some of the challenges from the Novelis subsidiary issues and contributed to the company's overall operational strength.
Brokerages remain bullish on Hindalco's outlook despite the company missing analyst estimates, with Motilal Oswal retaining its 'Buy' rating with a target price of ₹1,280, noting the stock trades at attractive valuations of 7.5x EV/EBITDA and 1.7x P/B on FY28E estimates. JM Financial maintained its 'Buy' rating with a target price of ₹1,310, revising earnings estimates upwards by 8.6% and 7.6% for FY27E and FY28E respectively, citing sustained LME prices above USD 3,500/t amid supply constraints. The brokerages emphasized that underlying operational performance remained strong, supported by record earnings in the domestic business and a gradual recovery at Novelis. Analysts highlighted that Novelis' volume/EBITDA is expected to recover from Q2/Q3 FY27 onwards with the Oswego facility coming on stream in June 2026, while Indian business margins are expected to expand offsetting near-term cost inflation.
Despite the strong operational performance, Hindalco shares fell nearly 2% in early trade before recovering to trade 1.82% lower at ₹1,089 as of 11:04 AM, emerging as the top loser on the Nifty 50 after missing analyst estimates. The stock had earlier advanced nearly 1% to touch an intraday high of ₹1,119.8 on the NSE before reversing gains. Hindalco was the biggest drag on the Nifty, shaving more than four points from the index's gains. The stock had closed nearly 1% higher at ₹1,109.2 apiece when the results were announced after market hours on Friday. Hindalco's board recommended a final dividend of ₹5 per share for the financial year ending March 31, 2026, with the record date fixed on July 10. The company's shares are expected to remain in focus following these results, with the stock having delivered around 71% returns in one year, 175% in three years and 184% in five years in the longer term.
