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Hindalco Industries shares are in focus after the company reported a strong set of results for the September quarter of FY27, with consolidated net profit rising nearly 59% year-on-year. The stock closed 1.88% higher at ₹957.70 apiece on the BSE on Friday.
The stock has gained 7.25% over the past week and 11.30% in the last two weeks. It has risen 1.89% over the past month and 21.53% over the past year. However, Hindalco shares remain down 6.71% over three months and 8.47% over six months. The stock has gained 7.01% year-to-date.
Hindalco Industries reported a 58.8% year-on-year jump in consolidated net profit to ₹7,533 crore in the September quarter of FY27, compared with ₹4,741 crore in the corresponding quarter last year.
Consolidated income rose to ₹92,651 crore from ₹66,771 crore in the year-ago period, the Aditya Birla Group company said in a regulatory filing.
The company's EBITDA for the quarter increased 42% year-on-year to ₹13,757 crore, reflecting strong contributions across its business segments.
In a statement, Hindalco said the record performance was underpinned by the strength of its integrated business model, led by a solid primary upstream business and complemented by strong contributions from its downstream operations.
The company's copper business recorded its highest-ever quarterly EBITDA, while subsidiary Novelis sustained its improved performance, supported by the normalisation of operations at its Oswego facility.
Hindalco's India aluminium production costs are expected to remain elevated in the December quarter, with coal costs likely to keep input expenses under pressure.
Speaking at a media briefing, managing director Satish Pai said production costs for the company's India aluminium business could be around 5% higher in Q3 compared with Q2. However, costs are expected to start moderating in the March quarter as coal availability improves.
"Q3 will be 5% above Q2. By Q4, costs should start coming down because coal availability in the northern region should improve once winter sets in and power demand in the northern areas declines," Pai said.
He added that coal prices in northern India remained elevated in October, keeping input costs high for the company's smelters in the near term.
Pai also highlighted continued tightness in domestic coal supplies, noting that inventories at some of the company's plants were at around 50% of normal levels. In contrast, coal inventories at its Odisha facilities remained at normal levels.
The company expects the cost pressures to ease in Q4 as coal availability improves with the onset of winter and power demand moderates in northern India.
Hindalco said its non-LME-linked businesses contributed nearly 50% of its earnings, highlighting the growing importance of these operations in supporting performance amid volatility in London Metal Exchange (LME) prices and global macroeconomic uncertainty.
The company expects upcoming projects, including the commissioning and ramp-up of Bay Minette, copper recycling, aluminium battery foil, Aditya flat-rolled products (FRP), and Inner Grooved Tubes, to further increase the contribution from its non-LME-linked businesses.
On the upstream front, Hindalco's aluminium refinery and smelter projects, copper smelters and coal mine developments remain on track, the company said.
These investments aim to strengthen its integrated business model by combining upstream capabilities with downstream expansion to support long-term growth across market cycles.
Nuvama Institutional Equities said Hindalco has hedged 26% of its estimated FY28 aluminium volumes at $3,168 per tonne, providing a cushion against potential downside in aluminium prices. The brokerage noted that this would help limit earnings risks, factoring in its LME aluminium price assumptions of $3,000 per tonne for FY28 and $2,700 per tonne for FY29.
It expects Novelis' earnings and cash flows to improve from Q4FY27 onwards. Nuvama has raised its FY27 and FY28 EBITDA estimates by 4–5%, factoring in higher copper profits. The brokerage upgraded the stock to 'BUY' from its earlier rating and raised its target price to ₹1,184 from ₹1,108. At the revised target, Hindalco trades at 5.6 times its FY28 estimated EV/EBITDA.
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