Vedanta Aluminium Metal Limited (BSE: 544780; NSE: VAML) has received positive assessments from six leading brokerages following its Q2 FY27 financial results, with Emkay Global, Nuvama, Nomura, Systematix, Avendus Spark and ICICI Securities all retaining their BUY recommendations. The brokerages have set target prices ranging from ₹490 to ₹550 per share, indicating potential upside of up to 53%.
The positive outlook follows a strong quarterly performance, with EBITDA rising more than 82% year-on-year to approximately ₹10,100 crore. Higher production volumes, improved realisations and a favourable product mix contributed to the earnings growth. Aluminium production reached a record 649,000 tonnes during the quarter, registering 5% year-on-year growth, while alumina production increased 37%. Production of value-added aluminium products rose 31% to 432,000 tonnes, reflecting the company’s focus on premium products and evolving customer requirements.
Emkay Global has maintained its BUY rating with a target price of ₹550, implying a potential upside of 53%. The brokerage identifies increased captive alumina availability, domestic bauxite sourcing and coal integration as important drivers of profitability. It also points to BALCO’s smelter expansion and higher refinery utilisation as contributors to future growth.
Nuvama has retained its BUY recommendation with a target price of ₹540, indicating 50% upside. Its assessment highlights production growth, improved asset utilisation and operating leverage from upcoming capacity additions. Systematix has maintained BUY with a ₹522 target, citing strong earnings, improved realisations and increasing sales of value-added products. BALCO’s expansion and higher alumina output are expected to support the company’s growth trajectory.
Avendus Spark has retained its BUY rating with a ₹500 target price, indicating 39% upside. The brokerage estimates that expansion and backward integration projects could generate incremental annual EBITDA of ₹6,000–8,000 crore over the next two years, equivalent to around 30% of the FY26 base. It also expects strong free cash flow generation to support investments and financial flexibility.
Nomura has maintained BUY with a ₹500 target, while ICICI Securities has retained its BUY recommendation with a ₹490 target, implying potential upside of 39% and 36%, respectively. Their assessments point to production expansion, improved raw-material security, premium-product growth, a stronger domestic sales mix and operational efficiencies.
Across the six brokerage reports, BALCO’s smelter expansion, increased alumina production at the Odisha refinery and development of captive bauxite and coal resources emerge as key factors supporting the outlook. Growing demand for value-added aluminium across automotive, infrastructure, electrical and manufacturing applications provides further growth opportunities.
Following its emergence as an independently listed company after Vedanta’s demerger, Vedanta Aluminium is increasingly being evaluated on its standalone operating performance, expansion plans and cash generation. The unanimous BUY recommendations reflect brokerage confidence in the company’s capacity additions, backward integration strategy and potential to strengthen earnings and shareholder value.
