Hindalco posts record Q1 profit of Rs 7,013 crore as aluminium prices soar

Aditya Birla Group’s metals flagship Hindalco Industries posted its highest ever profit and sales in the June quarter, boosted by a near-50% on-year jump in aluminium prices and recovery at its US subsidiary Novelis. Hindalco will now focus on project execution, managing director Satish Pai said.

For the June quarter, consolidated bottom-line surged 75% to Rs 7,013 crore, while revenue from operations rose 32% to Rs 84,825 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) jumped 73% to Rs 14,989 crore. The stock surged on the BSE and the NSE.

All three metrics — the bottom line, the top line and operating profits — were at record highs, underpinned by the surge in aluminium prices. To be sure, prices might relatively soften in the three months to September.


“The average (aluminium prices) in Q2 will be more like $3,200 (per tonne), which is about $250 lower than Q1,” Pai said on a post-earnings call. “But generally on a supply-demand basis, the aluminium (market) is very tight. Inventories are at an all-time low.”

Average prices of aluminium in the June quarter were $3,577 per tonne on the London Metal Exchange (LME), the global benchmark for the industrial metal.

The West Asian crisis led to the largest-ever supply shock for aluminium, driving up prices on the LME. This is likely to lead to a global deficit of 1 million tonne of aluminium in 2026, up from 300,000 tonne estimated before the conflict.

Hindalco, its MD said, will now focus on executing projects that are in various stages of completion.

Execution Focus

“We have Rs 50,000 crore of projects ongoing now involving refineries, smelters, the copper recycling plant and the copper smelter,” Pai said. “The biggest focus of the whole management team is to deliver those projects on time — and on budget.”

The company’s current upstream projects include the Aditya alumina refinery, two phases of the Aditya aluminium smelter and its copper smelter, while downstream projects include the battery enclosure at Chakan, AC Fins, and the Aditya Flat Rolled Products.

Hindalco is also evaluating investments worth another Rs 50,000 crore as it embarks on its next phase of growth, and these funds will be directed toward both upstream and downstream projects.

“Whatever we have, we are going to do more of that,” Pai said.

On Friday, the company announced capacity expansion at its Kuppam unit in Andhra Pradesh by up to 50% for an investment of Rs 808 crore.

Pai estimates aluminium prices to be in the range of $3,200-3,400 per tonne this year. He also sees the cost of production rising by around 4-5% sequentially in the current quarter, largely on account of the higher costs of gas and furnace oil.

Hindalco reported its earnings during market hours, and its shares climbed nearly 3% to Rs 1,054 apiece on the BSE.