Can Hindalco Industries Rebound From Margin Pressures in FY26?
About Hindalco Industries
Hindalco Industries is India’s leading aluminium and copper producer, part of the Aditya Birla Group. It operates globally through Novelis Inc., a major downstream aluminium products leader serving automotive and packaging sectors.
Q2 FY26 performance was below expectations as higher cost of production and lower realisation offset benefits from improving LME prices.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹52,230 Cr | +4% | –2% |
| EBITDA | ₹4,904 Cr | –9% | –6% |
| EBITDA Margin | 9.4% | –120 bps | –60 bps |
| PAT | ₹2,010 Cr | –11% | –5% |
Revenue ₹52,230 Cr — muted by lower premiums in Novelis and softer alumina prices.
EBITDA ₹4,904 Cr — impacted by higher energy costs and fire-related losses at Oswego plant.
PAT ₹2,010 Cr — weakened on margin compression despite steady volumes.
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Peer Comparison
| Company | EBITDA Margin | Segment Focus |
|---|---|---|
| Hindalco | 9.4% | Aluminium & Copper |
| Vedanta | 8.9% | Metals & Mining |
| NMDC Steel | 7.8% | Steel & Alloys |
Strengths & Weaknesses
Strengths
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Weaknesses
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Opportunities & Threats
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Valuation & Investment View
- Short-term: Range-bound with positive bias from domestic pricing.
- Medium-term: Recovery expected as Novelis operations normalize.
- Long-term: Aluminium structural demand to drive steady growth.
Track metal sector moves with BankNifty Derivative Tip.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, notes that Hindalco remains a steady metals play with long-term benefits from domestic infrastructure growth and aluminium substitution trends. Explore more at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
