NALCO Share Price: Emkay maintains ‘Reduce’ rating after Q4 profit falls - Check latest target price - Markets | Latest News Updates

NALCO Share Price: State-run National Aluminium Company Limited on Thursday, April 30, reported a 16.6 per cent drop in consolidated net profit to Rs 1,722.44 crore for the quarter ended March 31, 2026, on the back of lower revenue and higher expenses.

The company had posted a consolidated profit of Rs 2,067.23 crore in the year-ago period. Revenue declined to Rs 5,012.82 crore in the fourth quarter of FY26, compared to Rs 5,267.83 crore in the year-ago period, National Aluminium Company Ltd (Nalco) said in a filing to the stock exchanges.

Total expenses of the Navratna public sector undertaking rose to Rs 2,898.30 crore as against Rs 2,633.80 crore in the year-ago period.

The company’s board also approved the third interim dividend of Rs 2 per equity share, amounting to Rs 367.33 crore for 2025-26.

‘In terms of provisions under the Companies Act, 2013 and pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015, the Board of Directors have approved payment of 3rd Interim dividend @ Rs. 2/‐ per share (40% on Face value of Rs.5/‐each) on the paid‐up equity share capital of Rs.918.32 crore for the financial year 2025‐26,’ the company informed in an exchange filing.

The brokerage firm, Emkay, has maintained a REDUCE rating on National Aluminium Company (NALCO), with a target price at Rs 370 from Rs 410, after a weak Q4 performance and a deteriorating outlook for alumina profitability. Here are the further reasons why the firm maintained a reduced rating and revised its target price downward.

National Aluminium Company Ltd reported a weak Q4 with EBITDA at Rs 23.5 billion (+7.8% QoQ), 14.7% below consensus. The company’s aluminium performance improved on higher prices, while alumina EBITDA declined due to lower alumina sales during the quarter.

NALCO FY26 remained strong (EBITDA Rs79.5bn), with a higher net cash position and the company’s board also approved the third interim dividend of Rs 2 per equity share, amounting to Rs 367.33 crore for 2025-26.

While spot aluminium exposure supported earnings, the shift to 100% spot alumina sales raises profitability concerns amid oversupply, partially offset by a constructive aluminium outlook (USD3,200/t in FY28E).

The brokerage has cut its FY27–FY28 estimated EBITDA by 4% and lowered the target price to Rs 370 from Rs 410, while maintaining a REDUCE rating due to elevated valuations at 7.4x FY28E EV/EBITDA compared to the 6x average.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

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