As investors await Hindalco results, how brokerages view Novelis Q1 FY26 earnings

Hindalco shares were in the spotlight on Dalal Street in Tuesday's trade after the metal major's subsidiary, Novelis, reported its financial results for the quarter ended June 30. Novelis registered a 13 per cent year-on-year increase in sales to $4.7 billion, but a 36 per cent fall in its net profit to &96 million, according to a regulatory filing.

Q1 FY26 Results | How Novelis performed operationally 

The Hindalco arm's June-quarter adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 12 per cent sequentially to $416 million, falling short of Street expectations.

The company's EBITDA per tonne declined 13 per cent sequentially to $432, impacted by tariffs, rising scrap rates and a worsening product mix.

The company was estimated to take a hit of $28 million due to the imposition of a 50 per cent US tariff during the quarter.

Its net debt increased by 395 million on a quarter-on-quarter basis, to $5.57 billion. 

How brokerages view Novelis earnings

According to Jefferies, the Q1 EBITDA of Novelis fell short of the brokerage's estimates by 5 per cent. 

CLSA expects Novelis's profitability to remain low over the next two quarters before recovering in the March quarter.

Hindalco shares vs Nifty 50 vs Nifty Metal 

Hindalco shares staged sluggish moves in Tuesday's session, last seen trading flat at Rs 671.5 apiece on BSE after gyrating in a 657-677 range following a gap-down start. 

Hindalco shares have risen more than 13 per cent so far in 2025, outperforming gains of 3.6 per cent and 7.2 per cent in the Nifty50 and Nifty Metal indices, respectively. 

Hindalco Q1 FY26 Results Preview

Meanwhile, parent Hindalco was set to report its financial results on Tuesday. 

According to Zee Business research, Hindalco is estimated to register a 10.3 per cent year-on-year increase in its net profit to Rs 3,390 crore with revenue growing 5.0 per cent to Rs 59,855 crore for the April-June period. 

The metal giant is estimated to clinch a margin of 13 per cent for the June quarter, according to the research.