Nalco Q2 Review — Systematix Upgrades Stock To 'Buy', Citing Improved Cost Efficiency, Margin Expansion

Nalco’s Q2 FY26 revenue of Rs 42.9 billion (+7.3% YoY and +12.8% QoQ) was 3% above brokerage's estimate; Ebitda at Rs 19.3 billion (+24.3% YoY and +29.1% QoQ) was 22% above estimate due to lower costs and higher alumina sales..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.National Aluminium Company Ltd.’s 1 mt fifth alumina refinery stream has reached achieved 80% completion, with the remaining 20% work, primarily covering hydration and filtration tanks, electrical EPC, and process automation, expected to conclude ahead of commissioning targeted for June 2026. We expect 25% capacity utilisation on the expanded capacity in FY27 versus management guidance of 50%. Nalco currently sells around 1.3mt alumina externally through third-party exports after meeting the smelter requirement of around 0.9mt. We project Nalco to deliver external alumina sales of 1.25mt/1.57mt/1.88mt for FY26/FY27/FY28. We revise our FY26/FY27 Ebitda upward by 42%/9% incorporating-higher aluminium LME prices,elevated aluminium realisations and premiums, andlower cost of production driving margin gains witnessed in H1 FY26. We introduce FY28 estimates assuming blended utilisation of 87% of the total alumina capacity of 3.3mt and value Nalco 5.5x 1HFY28E EV/Ebitda, with a revised target price of Rs 277/share. Upgrade to Buy..Click on the attachment to read the full report:.P&G Q2 Review — Weak Gross Margins Impacts Profitability, Says Motilal Oswal Maintaining 'Neutral' Stance.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nalco Q2 Review — Systematix Upgrades Stock To 'Buy', Citing Improved Cost Efficiency, Margin Expansion

Systematix upgrades NALCO to 'Buy', sees 16% upside.

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