NALCO reported a 36.7% year-on-year rise in web revenue for the September quarter, reaching Rs 1,430 crore, in comparison with Rs 1,046 crore in the identical interval final yr. The expansion was supported by improved working effectivity and higher realisations. Income for the quarter rose 31.5% to Rs 4,292 crore, up from Rs 4,001 crore a yr earlier.
EBITDA for the quarter got here in at Rs 1,932.9 crore, reflecting a 24.8% improve over the earlier yr. Working margins strengthened to 45%, up from 38.7%, highlighting enhanced pricing energy and disciplined price administration.
The rally additionally comes within the backdrop of the corporate’s just lately introduced Rs 4 per share interim dividend and a constructive outlook for aluminium costs on the London Metallic Trade, with expectations of costs averaging round $2,670 per tonne in 2026.
Here’s what brokerages are saying:
Axis Securities: Purchase| Goal worth: Rs 265
Axis Securities has maintained a BUY ranking on Nationwide Aluminium Firm Ltd (NALCO), setting a revised goal worth of Rs 265 per share, up from Rs 220. This revised goal implies a possible upside of 13% from the present market worth. The brokerage values the corporate at 6.0x Sep’27E EBITDA and 0.5x e book worth of capital work in progress (CWIP), with the valuation rolled ahead from March 2027.In its outlook, Axis Securities highlighted that NALCO’s well timed growth and ramp-up of the fifth stream Alumina refinery, with a deliberate capability addition of 1 million tonnes each year (MTPA) by FY27, shall be a key development driver. The capital expenditure (capex) for this challenge has already seen price overruns. Moreover, NALCO has outlined a capex plan of Rs 30,000 crore for its 0.5 MTPA smelter and 1,080 MW captive energy plant (CPP), with capex spending anticipated to extend from FY28.The success of those initiatives, in line with the brokerage, will rely on well timed execution. The corporate has guided for a capital construction of 70:30 leverage, which can help the growth plans.
PL Capital: Purchase | Goal worth: Rs 281
PL Capital has maintained a BUY ranking on Nationwide Aluminium Firm Ltd (NACL), with a revised goal worth of Rs 281 (up from Rs 280).
The brokerage famous that NACL delivered a robust working efficiency in Q2FY26, supported by increased alumina stock liquidation, higher metallic realisations, and decreased energy and gas prices. Alumina volumes rose 39% year-on-year to 396 kt, whereas metallic volumes fell 7% YoY to 112 kt because of subdued home demand in the course of the monsoon.
Alumina Web Gross sales Realisation (NSR) declined 4% quarter-on-quarter to USD 404/tonne, whereas metallic common realisation rose 5% QoQ to USD 2,938/tonne. The corporate benefited from price tailwinds pushed by decrease worker bills, decreased gas prices, and better output from captive coal mines. Administration reiterated the commissioning timeline for its 1 MTPA alumina refinery and Pottangi bauxite mine by June 2026, which is anticipated to spice up volumes beginning FY27.
PL Capital additionally highlighted that captive coal mines are ramping up effectively and are anticipated to satisfy 57% of NACL’s coal requirement. Whereas the corporate has made structural enhancements in price efficiencies by means of captive assets, the brokerage flagged near-term weak spot in quantity development because of challenge execution delays.
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Emkay International Monetary Companies: Purchase | Goal worth: Rs 270
Emkay International Monetary Companies has upgraded NALCO to a Purchase from Add and raised its goal worth by 13% to Rs 270 (from Rs 240). This revision is predicated on 5 key elements: a web money steadiness sheet enabling hedge-free publicity to the aluminium cycle, 50% of alumina being offered by means of long-term contracts linked to LME, structural price enhancements leading to sturdy alumina and aluminium margins, low consensus estimates suggesting room for upward revisions, and engaging valuations. Though delays within the 1mt alumina challenge stay a priority, NALCO delivered a robust Q2 EBITDA of Rs 19.3 billion (+29% QoQ), beating Emkay and consensus estimates by 28–30%, supported by decrease caustic soda prices and better volumes.
(Disclaimer: Suggestions, ideas, views and opinions given by the specialists are their very own. These don’t signify the views of The Financial Instances)
