CLSA has reiterated its Outperform rating on Hindalco with a target price of ₹850 after Novelis reported Q1FY26 adjusted EBITDA of $416 million, 5% below estimates, with EBITDA per tonne at $432, down 18% YoY. The weakness was attributed to an adverse product mix, particularly higher beverage can volumes.
The brokerage expects profitability to remain subdued over the next two quarters before recovering in Q4. Novelis has revised its tariff impact guidance to $60 million per quarter from $40 million earlier, but is implementing mitigation measures and has raised its cost savings target to $100 million by FY26-end from $75 million earlier.
Disclaimer: The above views are those of the brokerage cited. Investors should consult a certified financial advisor before making investment decisions.
