Hindalco Industries Ltd. shares are in focus on Friday after the company reports its third-quarter earnings for the financial year ending March 2026. A couple of brokerages have cited concerns around Novelis and the Oswego fire, with Citi even downgrading the stock despite hiking the target price.
During the December quarter, Hindalco reported a consolidated net profit of Rs 2,049 crore sequentially in the quarter ended December 2025, marking a 56.8% downturn as compared to Rs 4,741 crore in the previous quarter, according to the consolidated financial results declared on Thursday.
In light of its December quarter earnings, HSBC has maintained a 'buy' call but has cut the target price, while Citi has downgraded the counter from 'buy' to 'neutral'. Jefferies, meanwhile, has maintained a hold while increasing the target price despite voicing concerns on Novelis.
Brokerages On Hindalco
HSBC on Hindalco
Maintain Buy | Target Price cut to Rs 1,210 (from Rs 1,240)
Strong underlying Q3 performance; Oswego impact seen as one-off
Core earnings remain robust with further improvement expected
Net debt spike largely due to higher India working capital, likely to reverse
South32's aluminium production cut underscores tightening global market
Jefferies on Hindalco
Maintain Hold | Target Price raised to Rs 890 (from Rs 855)
Weak Dec-quarter with concerns around Novelis
India aluminium business underperformed expectations
FY27–28 EPS raised by ~6% on higher aluminium price assumptions
Multiple fire incidents and rising debt cloud Novelis outlook
Citi on Hindalco
Downgrade to Neutral (from Buy) | Target Price raised to Rs 1,000 (from Rs 920)
Structural aluminium bull case tempered by leverage concerns
Await clarity on insurance recovery from Oswego fires
Cash flow impact seen as higher than earlier estimates
Novelis net debt/EBITDA expected to rise to ~4.5x by FY27 (from 3.7x)
ALSO READ: Hindalco Q3 Results: Net Profit Slumps 57% As One Time Loss Weighs
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