Shares of Hindalco Industries dropped over 1% on Monday after the metals major’s Q1 earnings, but Motilal Oswal and JM Financial remain bullish on the stock, maintaining their ‘Buy’ ratings.
Hindalco Industries shares fell to Rs 1,046 apiece on the NSE on Monday morning. This came even as the company on Friday reported a 75% year-on-year (YoY) rise in consolidated net profit to a record high of Rs 7,013 crore for the first quarter of FY27, helped by strong performance across its India aluminium and copper businesses and a recovery at subsidiary Novelis.
Revenue from operations rose 32% to an all-time high of Rs 84,825 crore in Q1 FY27, from Rs 64,232 crore reported in the corresponding quarter of FY26. Consolidated EBITDA increased 73% YoY to Rs 14,989 crore during the quarter under review.
Hindalco’s Managing Director Satish Pai said the company started FY27 with record revenue, EBITDA and profit, supported by the India business and improved profitability at Novelis. He said Hindalco continued to expand upstream capacities in alumina, aluminium and copper while scaling downstream projects, including battery foil, battery enclosures and flat-rolled products.
Also read | Hindalco Q1 results: Profit soars 75% YoY to record Rs 7,013 crore; revenue jumps 32%
JM Financial on Hindalco share price
JM Financial maintained its ‘Buy’ rating on the shares of Hindalco, and increased its target price to Rs 1,230 apiece from Rs 1,200 apiece. The latest target price implies around 17% upside potential.
The domestic brokerage noted that the company’s earnings beat was primarily driven by a stronger-than-expected India Aluminium business. It remains constructive on Hindalco, given its strong India operations, improving downstream mix, and Novelis.
Motilal Oswal on Hindalco share price
Motilal Oswal Financial Services also highlighted that the company’s earnings beat estimates, while its outlook brightened as Oswego headwinds faded. The domestic brokerage noted that the company’s Q1 growth was primarily driven by favorable pricing, better domestic product mix, and higher by-product pricing, along with the outperformance of Novelis earnings.
“Going forward, we believe the earnings outlook for the India operations to remain strong and Novelis to start recovering from the Oswego-led volume disruption, which resulted in additional costs to service customers,” Motilal Oswal said.
The brokerage however expects the company’s earnings in the second half of FY27 to remain softened for both Indian operations as well as Novelis due to a recent aluminum price reversal to $3,200/t from a peak of $3,850/t during the Middle East crisis. It however added that the strong volume outlook in H2 will support earnings positively.
Motilal Oswal raised earnings estimates for Hindalco, while maintaining its ‘Buy’ call and a target price of Rs 1,220 apiece, implying an upside potential of more than 15% from the stock’s previous closing price.
Hindalco share price
Hindalco shares have gained around 6% in a week and 9% in a month, being overall up 18% in 2026 so far.
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In the longer term, Hindalco shares have delivered strong returns of 57% in a year, 125% in three years and 147% in five years. The company currently has a market capitalisation of Rs 2.37 lakh crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
