Hindalco Q1 results: Profit soars 75% YoY to record Rs 7,013 crore; revenue jumps 32%

Hindalco Industries on Friday reported a 75% year-on-year (YoY) rise in consolidated net profit to a record high of Rs 7,013 crore for the quarter ended June, helped by strong performance across its India aluminium and copper businesses and a recovery at subsidiary Novelis.

Revenue from operations rose 32% to an all-time high of Rs 84,825 crore from Rs 64,232 crore a year earlier. Consolidated EBITDA increased 73% to Rs 14,989 crore from Rs 8,673 crore. Profit before exceptional items and tax more than doubled to Rs 11,692 crore from Rs 5,676 crore.

The company booked exceptional expenses of Rs 2,299 crore during the quarter, after which profit before tax stood at Rs 9,393 crore, up 65% from a year earlier. Basic earnings per share rose to Rs 31.58 from Rs 18.03.


Hindalco's India business delivered particularly strong growth, with revenue increasing 24% to Rs 30,985 crore. Business segment EBITDA rose 73% to Rs 8,606 crore, while profit after tax surged 86% to Rs 5,301 crore. The rise in India profit was also aided by Hindalco's transition to the new tax regime from April 1, which reduced its effective tax rate to 26% from 30% in the year-ago quarter.

Managing Director Satish Pai said the company started FY27 with record revenue, EBITDA and profit, supported by the India business and improved profitability at Novelis. He said Hindalco continued to expand upstream capacities in alumina, aluminium and copper while scaling downstream projects, including battery foil, battery enclosures and flat-rolled products.

The aluminium upstream business reported revenue of Rs 13,403 crore, up 44% YoY, while EBITDA surged 81% to a record Rs 7,390 crore. Shipments rose 3% to 335 kilotonnes.

EBITDA per tonne increased 59% to $2,331, while the upstream EBITDA margin expanded to 55% from 44% in the corresponding quarter, supported by favourable aluminium prices and stronger operating performance.

The company said the second phase of the Aditya aluminium smelter remains on track to begin metal production in FY28.

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Hindalco's aluminium downstream business also posted a record EBITDA of Rs 298 crore, up 30%, while revenue jumped 46% to Rs 4,889 crore. Shipments increased 3% to 104 kilotonnes. EBITDA per tonne rose 15% to $303, helped by an improved product mix and premiumisation.

The company commissioned its aluminium battery foil plant at Aditya and its coated air-conditioner fins facility at Taloja, while the Aditya flat-rolled products plant is being ramped up.

The copper business reported a 16% increase in revenue to Rs 17,232 crore, while EBITDA rose 36% to a record Rs 918 crore despite a planned major maintenance shutdown at the smelter. Copper metal sales declined 16% to 105 kilotonnes, while continuous cast rod sales fell 8% to 96 kilotonnes. The improvement in earnings was supported by stronger operating performance and higher realisations from by-products such as sulphuric acid.

Hindalco said its copper tubes and inner-grooved tubes plant is fully operational and is being ramped up, while its copper and e-waste recycling project is scheduled for commissioning during FY27.

Novelis business

Novelis reported revenue of $5.8 billion, up 23%, largely reflecting higher metal prices. Adjusted EBITDA increased 24% in dollar terms to $516 million from $416 million, while EBITDA per tonne rose 30% to $563.

Shipments, however, declined 5% to 916 kilotonnes from 963 kilotonnes a year earlier. Net income rose 71% to $164 million. In rupee terms, Novelis' business segment EBITDA rose 37% to Rs 4,875 crore, partly reflecting favourable currency movements.

Production at the Oswego hot mill, which had been affected by a fire, restarted in early June and is being ramped up. Novelis said the commissioning process at its 600-kilotonne Bay Minette facility was underway, with commercial shipments expected to begin in the first quarter of FY28.

Novelis had achieved more than $225 million in run-rate cost savings by the end of the June quarter and continues to target total savings of $350-400 million by the end of FY28. Its long-term EBITDA guidance of more than $600 per tonne remains unchanged.