Hindalco Industries (HNDL) reported strong 1QFY27 earnings

$HINDALCO Hindalco Industries (HNDL) reported strong 1QFY27 earnings, with consolidated performance ahead of estimates, driven by favourable metal pricing, a better domestic product mix, higher by-product prices, and strong execution across businesses, including Novelis. Consolidated net sales stood at Rs 848 billion, up 32% YoY and 9% QoQ, exceeding our estimate of Rs 775 billion. The growth was primarily supported by favourable metal pricing. Consolidated EBITDA came in at Rs 139 billion, 76% YoY and 40% QoQ higher, and was significantly ahead of our estimate of Rs 106 billion, led by broad-based strength across businesses and a strong contribution from Novelis. APAT stood at Rs 87 billion, up 118% YoY and 51% QoQ versus our estimate of Rs 56 billion, supported by stronger operating earnings. Hindalco’s aluminium business also delivered robust growth. Upstream revenue stood at Rs 134 billion, up 44% YoY, while EBITDA increased 81% YoY to Rs 73.9 billion ($2,331/t), supported by favourable market conditions and improved operational performance. Novelis reported revenue of $5.8 billion, up 23% YoY and 21% QoQ, compared with our estimate of $4.8 billion. The increase was primarily driven by favourable aluminium prices, partly offset by an estimated 33kt shipment loss due to the Oswego production disruption following the fire. Adjusted EBITDA rose 24% YoY and 12% QoQ to $516 million, ahead of our estimate of $422 million, driven mainly by lower aluminium scrap prices and cost efficiencies.