Shares of National Aluminium Company Ltd. (NALCO) are trading higher on Tuesday, August 4, after three brokerages upgraded the stock. Kotak Institutional Equities upgraded NALCO to 'Buy' from its earlier rating of 'Add', raising its price target to ₹445 from ₹442 earlier, citing strong aluminium fundamentals and an improving earnings outlook. ICICI Securities has also upgraded NALCO from 'Hold' to 'Add', and increased its price target to ₹400 from ₹395 earlier. Prabhudas Lilladher has now joined the positive sentiment, recommending an 'Accumulate' rating with a target price of ₹401 in its research report dated August 3, 2026, up from the previous target of ₹376. The brokerages expect earnings to remain robust as aluminium prices stay elevated amid a structurally tight global market, with Kotak noting that NALCO's Q1FY27 EBITDA exceeded estimates, supported by stronger aluminium margins.
National Aluminium Company Ltd. delivered exceptional financial performance in the first quarter of financial year 2027, with consolidated net profit surging 90.86% year-on-year to ₹2,003.14 crore compared to ₹1,049.48 crore in the corresponding quarter of the previous financial year, according to the latest regulatory filing. The company's Board of Directors approved these financial results for the quarter ended June 30, 2026, at their meeting held in New Delhi. This remarkable profit growth demonstrates the company's strong operational efficiency and favorable market conditions during the quarter, driven by higher global aluminium prices and record production at key facilities. The stellar performance in Q1 FY27 reinforces NALCO's strong competitive positioning, with higher aluminum realizations on the LME and stable alumina production significantly bolstering profitability.
NALCO achieved several milestone operational records during the quarter, including highest-ever first-quarter bauxite excavation at 19.52 lakh tonnes, highest-ever first-quarter calcined alumina production at 5.77 lakh tonnes, and highest-ever first-quarter alumina and hydrate sales at 3.47 lakh tonnes, according to the latest disclosure. These records demonstrate the company's enhanced production capabilities and operational efficiency, even as it continues to pursue major expansion projects. The robust quarterly performance was supported by favourable global aluminium prices, higher production and sales volumes, particularly increased domestic alumina sales, and a positive domestic business environment. The power of vertical integration and operational leverage in a supportive global pricing environment makes NALCO a high-conviction play in the metals space.
The company's board of directors recommended a final dividend of Re 1 per equity share for financial year 2025-26, equivalent to 20% of the face value, with a total dividend payout of ₹183.66 crore subject to shareholder approval at the company's 45th Annual General Meeting scheduled for August 31. As per Business Standard, the final dividend of Re 1.00 per share, if approved in the ensuing 45th AGM, will be paid within a period of 30 days from the date of declaration. This is in addition to three interim dividends aggregating ₹10.5 per share already paid during the year, taking the total dividend payout for FY26 to ₹11.5 per share. The company has fixed Monday, August 24, 2026 as the record date for the final dividend. Prabhudas Lilladher reports that commissioning of the 1 million tonne per annum alumina refinery has been delayed by a quarter and is now expected by end-September 2026, with commercial production likely towards the end of 2026. Management has also guided for improved alumina realisations and stable aluminium cost of production during the second quarter.
Shares of National Aluminium Company rose 2.87% to ₹360.15 on the NSE following the announcement of strong Q1 FY27 results and brokerage upgrades, as reported by Business Standard. The stock has a market capitalisation of ₹64,300 crore and touched an intraday high of ₹355.75 and low of ₹347.65. The positive market response reflects investor confidence in the company's exceptional financial performance and operational achievements. Kotak believes the ramp-up in captive coal production to 4.8 million tonnes per annum, along with continued employee rationalisation, should help offset cost pressures. The brokerage also noted that capital expenditure on the proposed 0.5 mtpa aluminium smelter is expected to accelerate only from FY2029 onwards, supporting healthy free cash flow in the near term. Prabhudas Lilladher maintains that at current market price, the stock is trading at 4.6x EV of FY28E EBITDA, with every US$100 increase in aluminium prices leading to approximately 5% upgrade in NALCO's EBITDA. The company remains focused on completing its ongoing expansion projects, enhancing capacities, improving operational efficiency, and strengthening research and development initiatives to sustain its growth trajectory.
