Bhubaneswar, Aug. 5: Vedanta Aluminium has received a strong vote of confidence from leading domestic and global brokerage firms after reporting its best-ever first-quarter performance for FY27, with analysts projecting significant upside driven by capacity expansion, lower production costs and sustained earnings growth.
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Following the company’s record quarterly results, several brokerages have reiterated their ‘Buy’ recommendations, assigning target prices between ₹520 and ₹600 per share against the prevailing market price of around ₹445–457, indicating a potential upside of 17 to 35 per cent.
Among the most optimistic, ICICI Direct has set a target price of ₹600, describing Vedanta Aluminium as a company well positioned to benefit from India’s long-term aluminium demand. The brokerage cited ongoing capacity expansion, a growing portfolio of value-added products and improving profitability as key growth drivers.
Kotak Institutional Equities has maintained a Buy rating with a target price of ₹585, highlighting the company’s backward integration strategy, expansion pipeline and expected reduction in production costs. According to the brokerage, favourable aluminium market conditions could further strengthen margins and cash generation.
Nuvama Institutional Equities has retained its Buy recommendation with a target price of ₹540, noting that the company is focusing on increasing aluminium volumes, expanding value-added products and improving operational efficiency through greater integration of raw material sources. It believes that with most capital expenditure nearing completion, the company is well placed to benefit from the next phase of the aluminium cycle.
Similarly, Motilal Oswal Financial Services has initiated coverage with a Buy rating and a target price of ₹540. The brokerage said the company delivered record EBITDA in the first quarter, supported by stronger aluminium prices and disciplined cost management. It expects further margin expansion through higher captive alumina production, commencement of captive bauxite and coal mines and the ongoing BALCO expansion.
Global brokerage Citi has reaffirmed its Buy recommendation with a target price of ₹525, citing structural cost improvements, visible growth catalysts and a healthy deleveraging trajectory. The firm expects Vedanta Aluminium to strengthen its balance sheet further and potentially achieve a net cash position by FY28.
Emkay Global Financial Services has also reiterated its Buy rating with a target price of ₹550, stating that the company’s continued investments in captive bauxite, alumina, coal and power assets are expected to significantly reduce production costs and enhance operating leverage. The brokerage believes these initiatives could position Vedanta Aluminium among the world’s lowest-cost integrated aluminium producers.
Analysts across brokerages identified several common strengths underpinning their positive outlook, including record quarterly earnings, disciplined cost management, expansion of value-added products, ongoing backward integration and the BALCO capacity expansion project. These factors are expected to support stronger margins, healthy free cash flows and sustained earnings growth over the medium term.
With multiple brokerages reiterating positive recommendations, market sentiment suggests that Vedanta Aluminium’s strong first-quarter performance is being viewed not as a one-time achievement but as the beginning of a longer-term growth phase supported by operational efficiency, strategic expansion and improving industry fundamentals.