Hindalco’s Q3 revenue drop was attributed primarily to a one-time provision associated to the hearth accident at its US-based subsidiary Novelis.
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DENIS BALIBOUSE
Shares of Hindalco Industries got here underneath stress on Friday, falling 6.5 per cent, main the losers of Nifty 50, after the corporate reported a pointy decline in internet revenue for the December quarter, largely as a result of an distinctive loss linked to a fireplace incident at its abroad subsidiary.
The inventory closed at 6 per cent decrease at 909 on the NSE, hitting a low of ₹901 in opposition to the earlier shut of ₹964.40.
The Aditya Birla Group firm posted a consolidated internet revenue of ₹2,049 crore for the quarter, down 45 per cent from ₹3,735 crore a yr earlier. The autumn was attributed primarily to a one-time provision associated to the hearth accident at its US-based subsidiary Novelis. Income from operations, nonetheless, rose 14 per cent year-on-year to ₹66,521 crore in contrast with ₹58,390 crore, whereas EBITDA elevated 5 per cent to ₹8,543 crore from ₹8,108 crore. The corporate reported an distinctive lack of ₹2,610 crore through the quarter.
Brokerages provided blended assessments of the outcomes and outlook. Analysts at Citi downgraded the inventory to impartial from purchase, although they raised the goal worth to ₹1,000 from ₹920. They mentioned the structural bullish thesis could possibly be tempered by leverage considerations, noting uncertainty over insurance coverage restoration associated to the Oswego hearth and warning that money move impression seems larger than earlier anticipated. Additionally they projected Novelis’ internet debt-to-EBITDA ratio might climb to about 4.5 occasions by FY27.
Jefferies maintained a maintain score and lifted its goal worth to ₹890 from ₹855, describing the quarter as weak and flagging considerations round Novelis. The brokerage famous softer-than-expected efficiency within the home aluminium enterprise and mentioned a number of hearth incidents cloud operational visibility whereas rising debt ranges stay a priority. It nonetheless raised FY27–28 earnings estimates by 6 per cent on the again of stronger aluminium costs.
In distinction, HSBC retained a purchase name however trimmed its goal worth to ₹1,210 from ₹1,240, arguing that underlying earnings remained robust and the Oswego impression needs to be considered as a one-off occasion. The brokerage mentioned larger working capital drove the bounce in internet debt, which it expects to reverse, and added that tight international aluminium provide situations might help profitability.
Home brokerage JM Monetary acknowledged consolidated adjusted EBITDA got here in marginally beneath expectations, with weaker efficiency at Novelis weighing on earnings. The brokerage highlighted improved aluminium EBITDA in India on robust international costs however pointed to a pointy rise in internet debt as a result of larger borrowings and dealing capital wants. It maintained a purchase at goal worth of ₹1,120, citing supportive steel costs and useful resource safety following latest mine acquisitions.
Motilal Oswal Monetary Providers mentioned consolidated efficiency was largely according to expectations and pushed by beneficial pricing, with home operations anticipated to remain resilient. Nevertheless, it cautioned that the hearth incident and value escalation on the Bay Minette mission weaken near-term visibility. The brokerage expects insurance coverage recoveries to offset a part of the impression over the following 18–24 months and reiterated a purchase name at a goal worth of ₹1,110.
The divergent brokerage views mirror a cut up between considerations over leverage and abroad disruptions and confidence within the firm’s core home enterprise, leaving buyers centered on how shortly operational and steadiness sheet readability emerges within the coming quarters.
Revealed on February 13, 2026
