Hindalco shares will react to a weak Novelis Q3 update post 24% fall from peak

Shares of Hindalco Industries Ltd., the Aditya Birla Group company, will be in focus on Thursday, January 9, after its unit Novelis released a preliminary update for the third quarter of financial year 2025 last night.

Novelis expects its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) on an adjusted basis to be between $360 million to $370 million, which is lower than the $454 million figure it reported during the same quarter last year.

Shipments for Novelis are likely to be in the range of 900 – 910k tonnes, which is nearly the same as the 910k tonnes reported during the year-ago period.

For the quarter, Novelis is likely to report EBITDA per tonne between $400 to $407, which is also lower than the $499 figure it reported last year.

Higher scrap prices and an unfavourable product mix contributed to the Novelis results during the quarter.

The management believes that the performance in the fourth quarter will be similar to that of the second quarter, which means, that the company’s EBITDA per Tonne can see a rebound to between $480 – $490 levels in the next quarter.

Shares of Hindalco have corrected 24% from their peak of ₹772, which they had hit in October last year. The correction has trimmed all of its gains over the last 12 months down to just 1.8%.

The stock ended 0.3% higher on Wednesday at ₹586.35.