NALCO, Vedanta, Hindalco: Aluminium majors shine in 2026, strongly outperform NIFTY50; here is why

Shares of leading aluminium producers such as National Aluminium Company (NALCO), Hindalco and Vedanta have massively outperformed the benchmark NIFTY50 index so far this year.

Shares of state-run National Aluminium Company have so far this year surged 33%; Aditya Birla Group's Hindalco has gained 12% year-to-date (YTD), and billionaire Anil Agarwal-backed Vedanta has advanced 23% (YTD) compared with an 8% fall in the NIFTY50 index.

Shares of aluminium producers came under buying interest after aluminium prices in global as well as domestic markets surged to near all-time highs amid trade disruptions after Iran blocked the Strait of Hormuz, an important trading route for everything from minerals and chemicals to crude oil.

Aluminium futures on the MCX, for delivery on April 30, advanced as much as 0.6% to ₹356 per kilogram, a little shy of ₹370 per kilogram, its lifetime high level. Aluminium futures on the London Metal Exchange advanced to $3,474 per tonne, its highest level since February when it touched a record high of $3,542.15 per tonne.

Apart from supply chain disruptions, aluminium production would also get impacted adversely after Iran struck two aluminium production facilities in the Middle East.

Iran's Revolutionary Guard launched missile and drone strikes against major aluminium plants in the UAE (Emirates Global Aluminium) and Bahrain (Alba) on March 28, 2026, causing "significant damage" and injuries. The attacks, targeting facilities allegedly linked to the US military, caused global aluminium price spikes, news agency AFP reported.

EGA reported that the Al Taweelah smelter sustained significant damage, with full restoration expected to take up to 12 months, though some operations might resume earlier.

The IRGC stated these strikes were in retaliation for attacks on their own industrial infrastructure, specifically targeting sites they claimed were affiliated with the US military, an AFP report added.

Analysts note that damage to the two key aluminium production facilities in West Asia would further tighten global supply, as the region is a major low-cost producer due to abundant energy resources.

Analysts added that the Indian aluminium companies stand to benefit from rising aluminium prices and production halts at the two facilities in Bahrain and the UAE, leading to better earnings visibility for Indian smelters.

Meanwhile, reports suggest that NALCO has raised its aluminium product prices, with increases of ₹7,800-₹8,500/MT in March, amid rising futures prices, supply disruptions and increasing production costs.

Aluminium is a widely used metal across transportation, construction, and packaging and also plays a critical role in sectors such as solar panels, electrical transmission systems, wind turbines, batteries, and electric vehicles.

Prices of the metal, which were already on an upward trajectory before the conflict, have risen further as traders and buyers increasingly factor in the risk of tighter global supply and declining inventories.

As of 1:21 pm, NALCO shares traded 0.7% lower at ₹409, Hindalco was up 0.14% at ₹987, and Vedanta rose 0.12% to ₹738.