Revenue for the quarter increased by 9.5% from the year-ago period to ₹24,264 crore.
Hindalco’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 14.2% from last year to ₹3,138 crore, while margins expanded by 50 basis points to 12.9% from 12.4% last year.The robust results were driven by a strong performance by the India business, and a resilient performance by Novelis.
The company’s Aluminium business upstream EBITDA stood at ₹4,309 crore, in comparison to CNBC-TV18’s poll of ₹4,000 crore.
EBITDA for the Copper business stood at ₹673 crore, as against CNBC-TV18’s poll of ₹600 crore.
Despite headwinds, Novelis reported a 1% increase in shipments driven by beverage can shipments which registered a 8% growth over the prior year quarter.
“After the record profitability of FY25, Hindalco sustained its growth momentum with a strong first quarter performance, driven by operational efficiencies, cost control, and an enhanced product mix,” said Satish Pai, Managing Director at Hindalco Industries.
Pai said the company made a significant progress in its downstream growth projects: the 170 KT Aditya FRP project, Aluminium AC fins, and the Copper IGT facility are under commissioning. “Looking ahead, our integrated business model, strategic investments and cost discipline, position us well to deliver
sustained growth.”Hindalco shares get a downgrade
Earlier today, brokerage firm Kotak Institutional Equities downgraded Hindalco to ‘Reduce’ from its earlier rating of ‘Buy’. Kotak also cut its price target on Hindalco to ₹705 from ₹735 earlier.
The price target cut and downgrade comes on the back of results reported by its subsidiary Novelis, whose adjusted EBITDA for the quarter was below expectations on lower margins and shipments.
Novelis’ management also expects a larger impact of tariffs on Novelis in the ongoing quarter, with an increase in the section 232 tariffs to 50%.
Kotak said that the risk of demand destruction from elevated tariffs is underestimated and it poses further downside risk to their base case.
Novelis took a hit of $60 million during the quarter due to Donald Trump’s tariffs, compared to $28 million in the first quarter.
EBITDA on an adjusted basis fell 17% from last year, while EBITDA per tonne on an adjusted basis fell 18% from last year to $432.
Shares of Hindalco are trading 0.78% lower on Tuesday at ₹667.60, after the results announcement.
