Hindalco Industries share price dropped 3.5 per cent to the day’s low of Rs 919.30 on the NSE. The stock was one of the top losers in the Nifty 50. The fall in the stock price came after the company reported quarterly earnings for Q2FY27.
Morgan Stanley on Hindalco Industries
The company’s consolidated Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) of Rs 12,800 crore beats estimate and consensus. Its domestic EBITDA of Rs 9,000 crore, which is 13 per cent above house estimate. Its Copper EBITDA of Rs 1,670 crore was 60 per cent ahead of house estimate. The Copper business beat on demand, sulphuric acid prices and one-time gains.
The company’s consolidated net profit of Rs 7,500 crore came below Rs 8,100 crore the brokerage house estimated. Also, its net debt to EBITDA eases to 1.80x from 1.95x
Hindalco Industries Q2FY27
The company’s consolidated net profit more than doubled year on year to Rs 5,132 crore in Q2 FY27, compared with Rs 2,266 crore in the corresponding quarter last year. Its revenue from operations surged 42.7 per cent to Rs 35,369 crore in Q2FY27 from Rs 24,780 crore.
On the operational front, the Aditya Birla Group firm’s EBITDA rose to Rs 7,590 crore from Rs3,740 crore a year earlier, while the EBITDA margin expanded to 21.5 per cent from 15.1 per cent, an improvement of 640 basis points.
A major contributor to the quarterly performance was Hindalco’s aluminium business. Aluminium EBITDA surged 53.4 per cent to Rs 7,338 crore from Rs 4,785 crore in the year-ago quarter.
The copper business delivered its highest-ever quarterly EBITDA, rising 164 per cent to Rs 1,673 crore from Rs 634 crore a year earlier. The performance reflects strong contributions from the company’s downstream operations.
Novelis performance and expansion plans
The company’s subsidiary Novelis, quarterly adjusted EBITDA, stood at Rs 4,858 crore, according to the company’s highlights, while production at its Oswego plant returned to normal levels. The commissioning process at its Bay Minette facility is also underway.
Earlier in the day, Novelis reported an adjusted EBITDA of $508 million for Q2 FY27, rising 20.4 per cent from $422 million in the corresponding quarter last year. Adjusted EBITDA per tonne improved to $553 from $448.
Hindalco Industries share price performance
The share price of Hindalco Industries has changed a little in the past five trading sessions. The stock has declined 2.5 per cent in the last one month. Hindalco Industries’ share price has increased 19 per cent over the previous 12 months.