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.
