Hindalco shares drop 2% after Q4 net profit falls 51% to ₹2,597 crore

Hindalco shares plunged over 2% on Monday morning, after the company’s Q4 FY26 earnings showed poor growth for the quarter. The shares have rallied 21.5% in 2026 on a YTD basis on the back of commodity price inflation during the quarter. Despite a 2% drop, shares continued to trade near 52-week high levels of ₹1,119 apiece on the NSE.

Q4FY26 earnings highlights

At the consolidated level, the company’s revenue growth for the quarter stood at 20% YoY to ₹78,133 crore as compared to ₹64,890 crore in the previous year’s same quarter. The topline growth was largely driven by upbeat growth in copper’s business segment at ₹22,156 crore, up 52% YoY. Similarly, the aluminium segment’s upstream and downstream segments grew by 11% and 35% YoY.

At the operational level, the company’s consolidated EBITDA for the quarter jumped 11% YoY to ₹10,812 crore as compared to ₹9,774 crore in the same period last year. The India business’s EBITDA growth stood at 17% YoY to ₹6,610 crore, and Novelis’ EBITDA growth grew modestly at 2% YoY to ₹4,202 crore.

However, the company’s consolidated net profit for the quarter plunged 51% YoY to ₹2,597 crore as against ₹5,284 crore. The India business’s net profit jumped 11% YoY to ₹3,549 crore as compared to ₹3,208 crore. However, Novelis’s bottom line plunged into losses of ₹756 crore as compared to the net profit of ₹2,074 crore, which led to an overall drop in net profit. The company recorded one-time exceptional expenses of ₹4,171 crore for the fire at Novelis’ Oswego plant.

Global analysts turn neutral

The global analysts turned to neutral ratings on Hindalco after Q4FY26 on a strong beat in the India business. Meanwhile, recovery in the Novelis is monitored closely. Analyst estimates operations to normalise at the Oswego plant in H2FY27.HSBC expects the net debt increase in FY26 to be partially driven by one-time factors and should reduce materially by FY27 end. Meanwhile, CLSA believes, the margin expansion led by higher LME prices for copper and aluminium could be partially offset by higher costs.