Hindalco Industries Ltd. FALL 3% DESPITE STRONG Q2

HINDALCO Shares of Hindalco Industries declined nearly 3 percent on Monday, November 9, despite the Aditya Birla Group company reporting strong financial results for the July-September quarter (Q2 FY27). The company posted a 58.8 percent year-on-year (YoY) increase in consolidated net profit, driven by robust contributions from its aluminium and copper businesses, along with improved performance at subsidiary Novelis. On the NSE, Hindalco shares opened at Rs 953 and slipped as much as 3 percent to an intraday low of Rs 919.30. Despite the decline, brokerages remained largely optimistic about the stock and maintained their bullish ratings. Hindalco had announced its Q2 FY27 financial results on Friday last week. The company's income for the second quarter increased significantly to Rs 92,651 crore, compared with Rs 66,771 crore in the corresponding period of the previous financial year. In a statement, Hindalco attributed its record performance to the strength of its integrated business model, supported by a strong primary upstream business and healthy contributions from its downstream operations. However, the company highlighted potential near-term cost pressures in its Indian aluminium operations. During a media briefing, Managing Director Satish Pai said production costs for the India aluminium business are expected to remain around 5 percent higher in the third quarter, primarily due to increased coal costs. He added that cost pressures are likely to start easing in the fourth quarter as dry-fuel availability improves.