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Hindalco Industries

HINDALCO · Metal Mining · INE038A01020

Analyst mean 2.57 · 30 analysts · 96% bullish
₹962.45
Close 2026-07-31 · Balanced risk

Reading the Statements forensic interpretation

What the numbers mean when read together — computed from the filings, not a score.

Cash lags profit somewhat

Operating cash flow is only 77% of trailing profit. Worth watching whether the gap is working-capital timing or something structural.

Full read

Operating cash flow ₹10,250 cr vs trailing net profit ₹13,391 cr. A persistent gap below 1.0 can be benign (growth working capital) or a tell (profit not converting to cash).

Profit fell while revenue grew

Over the last year profit declined 16.3% even as revenue grew 15.3% — margins are compressing, and any premium being paid rests on a year that moved backwards on the bottom line.

Full read

Trailing revenue ₹274,944 cr (up 15.3%) but trailing profit ₹13,391 cr (down 16.3%). Rising sales with falling profit points to cost inflation not passed through, mix shift to lower-margin lines, or one-off gains in the base year.

Net margin compressing

Net margin has narrowed from 8.1% to 3.3% year-on-year — profitability per rupee of sales is shrinking.

Full read

Quarter net margin 3.3% vs 8.1% four quarters earlier. Sustained compression signals pricing pressure, cost inflation, or mix deterioration.

Burning cash after capex

Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.

Full read

Latest free cash flow ₹-19,508 cr, negative in 1 of 12 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.

Borrowing while holding investments

Borrowings rose 76% over two years while the company also carries ₹24,958 cr in investments. Why borrow at interest while parking money elsewhere is a fair question.

Full read

Borrowings moved to ₹99,165 cr from ₹56,356 cr. Simultaneous large investments can be legitimate treasury management, or a sign that reported cash is not freely available.

Capital work-in-progress is sticky

Capital work-in-progress has stayed high (38% of fixed assets) without converting to productive assets — worth checking whether projects are genuinely progressing.

Full read

CWIP ₹49,526 cr vs ₹14,867 cr two years earlier, against fixed assets ₹130,251 cr. Perennial CWIP that never becomes a fixed asset can hide stalled projects or capitalised costs that should have been expensed.

Price & Valuation 10-year, split-adjusted

Markers show corporate actions (splits, bonus, dividends). Prices are split-adjusted so the series is continuous.

Valuation & Quality

Valuation
P/E (TTM) 14.7x
P/B 1.53x
P/S 0.76x
PEG 1.58
Dividend Yield 0.53%
Leverage
Debt / Equity moderate 0.73
Payout Ratio 8.3%
Returns & Margins
Operating Margin (TTM) 7%
Net Margin (TTM) 4.9%
Return on Equity 10.3%
Return on Assets 4.4%
Implied Growth (Graham) growth the market is pricing in 3.1%
Rule of 40 27.4
Growth 20.4% + Margin 7% — below 40

Ownership & Skin in the Game

Promoter34.66% ▲ 0.02
FII31.41%
DII
Mutual Funds10.05%

Quarterly Financials ₹ cr

MetricJun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue57,01358,20358,39064,89064,23266,05866,52178,133
Expenses49,51050,32050,80756,05456,32657,09258,53068,119
Other Income96561469706604532-2,061-3,146
Depreciation1,8921,9321,9392,1182,0802,1552,2202,375
Profit before tax4,8485,6435,2966,5505,6766,5402,8293,451
Net Profit3,0743,9093,7355,2844,0044,7412,0492,597
EPS13.6817.3916.6223.5117.8221.109.1211.56

Balance Sheet ₹ cr, annual

ItemMar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital222222222222222222
Reserves66,31177,96994,584105,924123,487136,361
Borrowings67,20664,48660,29156,35665,64299,165
Fixed Assets100,269106,874110,626111,810116,556130,251
CWIP10,2024,9457,70014,86727,39749,526
Investments17,13314,11914,11615,44424,15824,958
Total Assets188,822221,855223,489230,723264,300344,681
DISCLAIMER: FinMinutes is a financial data and analytics platform, not a SEBI-registered investment adviser. Everything here is for educational and informational purposes. Forensic interpretations are computed from disclosed data and are not recommendations. Do your own due diligence.