Nuvama Institutional Equities has maintained its Buy call on Hindalco with a target price of ₹776 after Novelis posted a weaker-than-expected Q1 adjusted EBITDA of $416 million, compared to its $439 million estimate. EBITDA per tonne came in at $432, down 13% QoQ, impacted by US tariffs, a lower scrap spread, and an unfavorable product mix.
The net tariff impact stood at $28 million in Q1, with management guiding for $60 million per quarter going forward, assuming a 50% tariff on aluminium imports into the US. Despite the headwinds, Nuvama expects an improvement in scrap spreads and lower production costs, with management indicating EBITDA has likely bottomed out in Q1FY26.
Disclaimer: The above views are those of the brokerage cited. Investors should consult a certified financial advisor before making investment decisions.
