Hindalco Industries (HINDALCO) | News Based Sentiment Analysis

• On September 3, 2025, Hindalco delivered 10,000 aluminium battery enclosures to Mahindra Group for their electric SUVs, the BE 6 and XEV 9e. These enclosures reduce weight by 40%, improving vehicle range by 8-10% and enhancing safety – a significant win for Hindalco in the growing EV market.
• Hindalco is doubling down on sustainability, partnering with "The Future is Neutral" on September 3, 2025, to achieve at least 95% recycling in its automotive aluminium division, aiming for over 50% from post-consumer scrap. This initiative supports the circular economy and positions Hindalco as a leader in responsible aluminium production.
• Hindalco’s 1QFY26 earnings, reported on September 4, 2025, beat analyst expectations with consolidated net sales of INR 642.3 billion (+13% YoY) and APAT of INR 40 billion (+21% YoY). This strong performance was driven by gains in both Aluminium Upstream and Downstream segments.
• Despite the overall positive 1QFY26 results, Novelis, a Hindalco subsidiary, saw Adjusted EBITDA decline 17% YoY to USD 416 million, as reported on September 4, 2025. This was attributed to elevated scrap prices, an unfavorable product mix, and tariffs impacting performance.
• Looking ahead, Hindalco anticipates Aluminium India EBITDA to remain stable, with Copper EBITDA projected at INR 6 billion per quarter, as indicated by MD Satish Pai on August 18, 2025. However, Novelis faces headwinds from tariffs, with a USD 60 million impact anticipated in Q2.
• Analyst sentiment remains largely positive, with Axis Securities initiating a 'Buy' rating on September 8, 2025, setting a price target of Rs 819.0 (a 9.93% upside), while Motilal Oswal reaffirmed a 'Buy' rating with a Rs 790 target price on September 4, 2025.
• Investor interest in Hindalco is increasing, with a 19.87% rise in investment on INDmoney over the last 30 days (August 9 to September 8, 2025) and a 56% surge in search interest, signaling growing market attention.

The Investment Story: Hindalco demonstrated strong overall financial performance in 1QFY26, driven by its aluminium business and strategic partnerships in the EV space, though Novelis faced some challenges. The company is actively pursuing sustainability initiatives and maintaining a positive outlook with analyst support.

What It Means for Investors: The results suggest continued growth potential, particularly in the EV component market. However, investors should monitor Novelis' performance and the impact of tariffs on its profitability. Positive analyst ratings and increasing investor interest provide further support.

Looking Ahead: Investors should watch for updates on Novelis' cost savings initiatives and the impact of scrap prices, as well as the company's ability to maintain its strong EBITDA margins. The performance of the EV battery enclosure business will also be a key area to monitor.

The Bottom Line: Hindalco appears well-positioned for continued growth, balancing strong performance in its core aluminium business with strategic expansion into the EV market and a commitment to sustainability, making it an attractive investment despite some near-term challenges for its Novelis subsidiary.