Hindalco Industries shares: Aditya Birla Group's flagship company Hindalco Industries has seen a decline in profits, due to which there is selling pressure on the shares, but still, the brokerage is bullish on it.

Brokerage bullish on Hindalco Industries shares

Hindalco Industries shares: Shares of Hindalco Industries, a metals company, are trading lower on Friday following its December quarter results. At 10:17 am, shares of this flagship Aditya Birla Group company fell 5.97% to ₹906.75 on the BSE, significantly lower than its previous close of ₹964.30. Selling pressure on the stock is so severe that its market cap has plummeted to ₹2.03 lakh crore.

Company results for Q3 FY26 

The company's consolidated net profit for the October-December quarter of fiscal year 2025-26 was ₹2,049 crore, compared to ₹3,735 crore in the same quarter last year. This represents a 45% decline in profits.

The company stated that the decline in profit was primarily due to expenses of ₹2,610 crore (approximately $2.61 billion) incurred due to disruptions at its Oswego plant in New York. Despite this, the company's consolidated operating revenue increased 14% to ₹66,521 crore (approximately $6.62 billion). According to the company's investor presentation, the aluminum upstream segment recorded EBITDA of ₹4,832 crore (approximately $4.83 billion), a 14% year-over-year increase, supported by strong domestic demand. 

Shares may rise up to 23%

Brokerage firm JM Financial said its stock was "good" in India. A fire in Oswego temporarily impacted earnings, causing some difficulties in its copper business. The brokerage maintains a "Buy" rating on Hindalco stock and sets a 12-month price target of 1120. This implies an upside potential of approximately 23.5% from current levels.