Hindalco Industries Ltd. shares fell during early trade on Tuesday after US arm Novelis Inc. reported a subdued first quarter, missing market expectations.
The company's net profit fell 67% sequentially to $96 million for the June quarter of fiscal 2026. On a year-on-year basis, it was down 36%.
Revenue rose 2.83% to $4.7 billion.
On the operating level, Ebitda fell 30% to $361 million, leading to a squeeze in margin to 7.65% compared to 11.33% in the previous quarter. Adjusted Ebitda per tonne was at $432 compared to $494.
The performance remains affected by elevated scrap cost, which started impacting margins last year and is now exacerbated by the impact of tariffs, Emkay Global said in a note.
JPMorgan reduced its target price for Hindalco shares to Rs 715 from Rs 720 but maintained an 'Overweight' rating after Novelis Q1 results. CLSA retained 'Outperform' with an unchanged target of Rs 850.
Hindalco Share Price Movement
Hindalco share price fell 2.3% to Rs 657.5 apiece. The benchmark NSE Nifty 50 was up 0.1%.
Hindalco share price fell 2.3% to Rs 657.5 apiece. The benchmark NSE Nifty 50 was up 0.1%.
Hindalco share price fell 2.3% to Rs 657.5 apiece. The benchmark NSE Nifty 50 was up 0.1%. The total traded volume so far in the day stood at 0.5 times its 30-day average. The relative strength index was at 44.
The stock has risen 12% in the last 12 months and 7% on a year-to-date basis.
Out of the 29 analysts tracking Hindalco Industries, 21 have a 'buy' rating on the stock, five recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price target of Rs 749 implies a potential upside of 12%.
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