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Hindalco Industries Ltd
NSE: HINDALCO BSE: 500440 INE038A01020 Commodities Metals 🔎 Screen
NIFTY 50 NIFTY 100 NIFTY 200 NIFTY 500 Metal Commodities
₹235,214 Cr
Market Cap
17.6
P/E
1.78
PEG
13.2%
ROCE
13.0%
ROE
0.73
D/E
12.8%
OPM
-9.4%
% from 52W High
79
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Incorporated in 1958, Hindalco Industries Ltd. is a flagship company of the Aditya Birla Group. The Co and its subsidiaries are primarily engaged in the production of Aluminium and Copper. It is also engaged in the manufacturing of aluminium sheet, extrusion and light gauge products for use in packaging markets like beverage and food, can and foil products, etc.

✓ Strengths 1
  • Company has delivered good profit growth of 35.2% CAGR over last 5 years
! Concerns 2
  • Company has a low return on equity of 12.5% over last 3 years.
  • Company might be capitalizing the interest cost
Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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Mixed: Novelis (Hindalco's 100% subsidiary) delivered a strong operating beat — Adjusted EBITDA +24% YoY and per-tonne EBITDA +30% — but cash flow was deeply negative, shipments fell 5% and net leverage rose to 4.5x. quarter Investor Presentation One-Pager? Jun 2026
Revenue (Novelis, 100% sub)
₹49,241 Cr
$5,793m net sales, +23% YoY (at ₹85/USD); higher aluminum prices offset 5% lower shipments
Adjusted EBITDA Margin
8.9%
Adjusted EBITDA ₹4,386 Cr ($516m), +24% YoY; margin roughly flat YoY, but per tonne +30%
Net Profit (Novelis, 100% sub)
₹1,394 Cr
$164m attributable, +71% YoY; excluding special items ₹2,253 Cr ($265m), +128% YoY
Shipments / Adj EBITDA per tonne
916 kt / ₹47,855
Shipments -5% YoY, Oswego fires cut ~33kt; Adj EBITDA per tonne $563, +30% YoY
What Went Right
  • Adjusted EBITDA rose 24% YoY to ₹4,386 Cr ($516m); Adjusted EBITDA per tonne jumped 30% to ₹47,855 ($563), or ₹44,625 ($525) excluding the net Oswego/insurance benefit.
  • Net income excluding special items doubled to ₹2,253 Cr ($265m), +128% YoY; GAAP net income was ₹1,394 Cr ($164m), +71% YoY.
  • Cost-efficiency plan is ahead of original targets: >₹1,913 Cr ($225m) run-rate savings achieved; FY28 target raised to ₹2,975-3,400 Cr ($350-400m).
  • Oswego hot mill restarted in early June and ₹2,550 Cr ($300m) of insurance recoveries have been recognized; Q1 included ₹400 Cr ($47m) of business interruption proceeds.
  • South America and Asia were strong: South America Adjusted EBITDA +56% to ₹1,581 Cr ($186m); Asia +30% to ₹1,029 Cr ($121m).
What to Watch
  • Total rolled product shipments fell 5% YoY to 916kt; the Oswego disruption alone knocked out an estimated 33kt.
  • Adjusted free cash flow was -₹9,639 Cr (-$1,134m) vs -₹2,508 Cr (-$295m) a year ago; operating cash flow was -₹3,868 Cr (-$455m) vs +₹893 Cr (+$105m), with working capital absorbing ₹8,050 Cr ($947m).
  • Net leverage climbed to 4.5x from 4.1x at March 2026 and 2.2x at FY22; adjusted net debt rose to ₹66,853 Cr ($7,865m).
  • North America, Novelis' largest segment, saw Adjusted EBITDA fall 17% YoY to ₹944 Cr ($111m) as Oswego fires, tariffs and unfavorable mix bit.
  • Oswego fire losses, net of recoveries, still added ₹2,253 Cr ($265m) to pre-tax expenses in the quarter; the timing of further insurance recoveries remains uncertain.
Management Guidance
  • FY27 capital expenditure expected at $2.1-2.4 billion (₹17,850-20,400 Cr), including ~$350m (₹2,975 Cr) maintenance capex.
  • Targeting ~$300m (₹2,550 Cr) run-rate cost savings by end FY27 and $350-400m (₹2,975-3,400 Cr) by end FY28.
  • Bay Minette total project cost remains ~$5 billion (₹42,500 Cr); commercial shipments expected in Q1 FY28.
  • Expect to return to positive free cash flow by the end of FY27; Oswego restart and Bay Minette commissioning underpin this.
Investor Lens
For Hindalco, this release covers Novelis (100%-owned), the main earnings driver; the underlying business is strong — Adj. EBITDA/t +30% to ₹47,855 and the cost programme is ahead of plan — but cash conversion is the weak point. Adjusted free cash flow was -₹9,639 Cr and net leverage rose to 4.5x, driven by Bay Minette capex and a ₹8,050 Cr working-capital outflow as aluminum prices rose. Oswego is now restarted, removing a major operational overhang, yet North America EBITDA still fell 17% YoY and shipments are ramping. Liquidity of ₹17,850 Cr plus the post-quarter ₹4,250 Cr ($500m) term loan provide cover, but the promised return to positive FCF by Q4 FY27 requires capex to taper and no further working-capital shock. Watch next quarter for shipment recovery, Bay Minette spend pace, and whether leverage starts to decline from 4.5x.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Hindalco Q1 PAT jumps 75% YoY to ₹7,013 Cr on strong operating performance
Revenue
Revenue for the June 2026 quarter rose 32.1% YoY to ₹84,825 Cr, with 8.6% sequential growth. The acceleration reflects higher realisations and volumes across the commodity cycle.
Profitability
Net profit surged 75.1% YoY to ₹7,013 Cr, with EPS at ₹31.21 versus ₹17.82 a year ago. PBT stood at ₹9,393 Cr despite negative other income of ₹1,236 Cr, and the tax rate was 25%.
Margins
Operating margin expanded to 16% from 12% YoY and 13% QoQ. Operating profit grew 76.2% YoY to ₹13,932 Cr, outpacing revenue growth and indicating strong operating leverage and cost control.
Balance Sheet
Debt-to-equity stands at 0.73x, indicating a moderate leverage profile. ROCE is 13.2% and ROE is 13%, reflecting reasonable capital efficiency.
Key Risks
Negative other income of ₹1,236 Cr signals potential derivative or exceptional losses. Profitability remains sensitive to aluminium and copper prices, input costs, and a 25% effective tax rate. QoQ margin expansion may not sustain if commodity prices correct.
Outlook
Strong YoY and QoQ results point to a favourable metal price environment and healthy execution. Momentum will depend on global demand, supply trends, and cost inflation.
Generated by AI · Jun 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
(a) Novelis
43,810
EBIT 4,202
(b) Aluminium upstream
11,418
EBIT 5,448
(c) Aluminium downstream
3,909
EBIT 233
4,867
EBIT 255
(d) Copper
22,156
EBIT 907
Aluminium upstream
10,620
EBIT 4,832
Copper
18,233
EBIT 595
Novelis
37,292
EBIT 3,102
Total 70,054 82,251

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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Investment Risk:
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