Hindalco Industries (HNDL IN) – Q1FY27 Result Update – Strong pricing drives India; Novelis to improve gradually – ACCUMULATE
Published on 07 Aug 2026
Hindalco Industries (HNDL) delivered robust Q1FY27, with 62% India EBITDA growth led by higher LME and higher copper bye-product prices while volume growth remained soft. Upstream aluminum benefited from higher NSR driving EBITDA/t to US$2,331, while downstream EBITDA improved on better product mix, pricing and improving FRP volumes. Novelis delivered an inline quarter aided by LME and premiums offsetting volume impact from the Oswego fire (33kt); while Asia and S. America regions continuing better margins and volumes supporting Oswego. With Oswego expected to get ramped up in next few quarters, Novelis volumes should recover, reducing elevated leverage gradually. At CMP, the stock is trading at EV of 6.2x FY28E EBITDA. Maintain ‘Accumulate’ with a revised TP of INR 1,162 (earlier INR 1,050) valuing at same 7x/6.5x India/Novelis biz respectively.
