Aluminium prices plunged 21%, from $3,800 to $3,000 per tonne, triggering a sharp correction in aluminium stocks.
Siddhartha Khemka, head of research at Motilal Oswal, pinpoints a faster‑than‑expected supply recovery as the culprit—West Asian smelters restarting and China and Indonesia ramping up output.
Yet, Khemka maintains a bullish outlook on Indian producers, citing structural demand that should keep margins robust once the sector re‑aligns toward value‑added products.
Hindalco is doubling down on value‑added capacity, a strategy expected to lift its profit margins, while Vedanta Aluminium remains a top pick for those looking to buy on dips.
Analysts recommend a gradual accumulation of quality aluminium names as the base‑metals cycle shows resilience; the next earnings call is slated for Q3 2026, offering a clearer view of profitability trends.