Q2 FY27 results analysis · November 06, 2026
Hindalco Industries Q2 FY27 Results Analysis: PAT Jumps 59%, Copper Profit Surges 164%
+58.9%PAT year on year, Rs. 7,532.00 Cr
Source: Quarterly results filing (BSE)
Quick summary
Hindalco Industries Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 91,708.00 Cr (+38.80% YoY) and PAT growth of +58.90% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 91,708.00 Cr (+38.80% YoY) |
| PAT (Q2) | Rs. 7,532.00 Cr (+58.90% YoY) |
| EBITDA margin | 13.98% (+41 bps YoY) |
| EPS (Q2) | Rs. 33.93 (+58.90% YoY) |
Quarter Snapshot
Hindalco delivered 38.8% YoY revenue growth and 58.9% PAT growth, with normalized PAT up 45.0% YoY after stripping Oswego-related gains, and the Copper segment result up 163.9% YoY. The offset is cash quality: H1 CFO was only 0.19x PAT with FCF of −Rs.16,519 Cr, funded by a Rs.13,869 Cr rise in gross debt during a heavy capex cycle. No metric can be scored as a guidance beat since the filing discloses no comparable prior guidance actuals for revenue, earnings, margin, or volume.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| "likely in-line to ahead on volumes, mixed on realization" (revenue) | revenue +38.8% YoY, +8.1% QoQ | Played out |
| "likely compressing in India… 5–6% QoQ India cost inflation" (margins) | standalone EBITDA margin 22.89% → 21.46%; upstream 55.14% → 52.45%; but standalone EBITDA Rs.7,590 (+8.7% QoQ) and consol ex-exc margin still +41 bps YoY — margin direction right; absolute EBITDA rose on copper | Partially |
| "the Rs.918 Cr Q1 copper EBITDA… has not visibly reversed" | copper segment result Rs.1,673 (+163.9% YoY) — strengthened | Played out |
| "expects Novelis adjusted EBITDA broadly flat sequentially at ~$500M" | Novelis result Rs.4,858, −0.3% QoQ (US$ not observable in filing) — Rs. direction); US$ level Not observable | Played out |
| tariff impact easing below $70M | not disclosed in filing | Not observable |
| "the weaker rupee… is a translation tailwind" | consolidated revenue +8.1% QoQ despite lower LME aluminium — consistent | Played out |
| watch working-capital absorption | CFO/PAT 0.19x; inventories +8,279 H1 — risk visible | Played out |
| upstream margin vs Q1's 55% | 52.45% | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Consol net debt/EBITDA ~2x or below | management commentary, Q1 FY27 earnings call ("~2x" ongoing commitment) | proxy 1.75x on my basis (company basis was 1.95x at Jun-26; Sep-26 company basis not disclosed in filing) — proxy basis | On Track |
| India capex Rs.12,000 Cr | Q1 FY27 earnings call | standalone H1 capex Rs.5,266 Cr ≈ 44% of the FY target (consol capex Rs.19,344 Cr includes Novelis) | On Track |
| Copper & downstream aluminium volumes higher QoQ | Q1 FY27 earnings call | volumes not disclosed; Copper revenue +24.0% and downstream +12.7% QoQ are consistent — revenue proxy consistent | Too Early |
| India cost inflation 5–6% QoQ (rupee) | management commentary, Q1 FY27 earnings call | power & fuel +8.1% QoQ; unit cost not derivable (no volumes) — proxy at/above range | Too Early |
| "Hindalco is poised for a good FY27"; Novelis "heading to a recovery year in FY27" | Q1 FY27 earnings call | H1 consol revenue +35.5% YoY (176,533 vs 130,290), H1 normalized PAT +73.7%; Novelis margin stabilizing but slightly below Q1 — on H1 evidence | Confirmed |
| Tariffs to decline "by the end of the year" but not to zero | Q1 FY27 earnings call | not disclosed in this filing | Too Early |
| Q2 volumes for copper and downstream aluminium will be higher | Q1 FY27 earnings call | segment revenues up sharply QoQ (Copper +24.0%, downstream +12.7%); volume split not disclosed — consistent revenue proxy; volumes not disclosed | Partially |
| Alumina ~190 kt planned for Q2 | Q1 FY27 earnings call | volumes not disclosed | Too Early |
| Cost inflation of 5–6% QoQ flagged for Q2 | Q1 FY27 earnings call | power & fuel +8.1% QoQ; other expenses +4.4% QoQ — proxies straddle the range | Partially |
Key Investment Insights
Key Positives
- Consolidated revenue grew 38.8% YoY to Rs.91,708 Cr (+8.1% QoQ), with all four segments growing
- PAT to owners grew 58.9% YoY to Rs.7,532 Cr; normalized PAT (ex-Oswego gains) grew 45.0% YoY
- Standalone (India) PAT grew 126.5% YoY to Rs.5,132 Cr with EBITDA margin of 21.46% vs 15.09% a year ago
- Copper segment result grew 163.9% YoY to Rs.1,673 Cr with margin at 7.83% vs 4.35% a year ago
- Aluminium upstream margin of 52.45% is ~760 bps above the year-ago 44.89% despite ~270 bps QoQ easing
- Net worth expanded Rs.23,084 Cr in six months; proxy net debt/EBITDA at 1.75x, around the ~2x commitment
- India capex on track: standalone H1 capex of Rs.5,266 Cr is ~44% of the FY27 Rs.12,000 Cr target
Risk Factors
- H1 consolidated CFO of Rs.2,825 Cr was only 0.19x PAT, with inventories up Rs.8,279 Cr and payables down Rs.4,634 Cr absorbing the EBITDA gain
- H1 free cash flow was negative Rs.16,519 Cr; the funding gap was closed with borrowings (financing inflow of Rs.12,882 Cr)
- Ex-exceptional EBITDA margin compressed ~245 bps QoQ to 13.98% from Q1's 16.43% on lower LME and cost inflation
- Power & fuel cost rose 8.1% QoQ, at/above the flagged 5–6% QoQ India cost inflation range
- Effective tax rate rose to 28.89% from 25.34% in Q1, with tax growing 70.2% YoY, faster than PBT
- AluChem acquisition was mutually terminated during the quarter owing to extended closing delays
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