Motilal Oswal has maintained a Neutral rating on NALCO with a target price of ₹380 in its research report dated August 03, 2026. According to the brokerage's analysis, the stock is currently trading at 6x on FY28E EV/EBITDA, with the target price representing a valuation of 6.5x EV/EBITDA on FY28 estimates.
NALCO's revenue performance was in line with expectations at ₹53 billion, representing a 39% year-on-year growth and 6% quarter-on-quarter increase. The company's consolidated EBITDA stood at ₹27 billion, showing strong growth of 81% YoY and 15% QoQ, which was in line with Motilal Oswal's estimates. The EBITDA margin improved significantly to 51.1% in Q1FY27 compared to 46.9% in Q4FY26 and 39.2% in Q1FY26, primarily driven by favorable aluminum prices.
The company's adjusted profit after tax (PAT) for the quarter stood in line with estimates at ₹20 billion, marking a substantial 91% year-on-year growth and 16% quarter-on-quarter increase. This strong operating performance was led by the company's robust financial metrics and favorable market conditions in the aluminum sector.
