Adani’s Kutch Copper sees Rs 750-800 crore quarterly EBITDA this fiscal

Mumbai: Adani-group owned Kutch Copper expects its quarterly operating profit to remain steady in the range of Rs 750 – 800 crore this fiscal, as a likely moderation in margins is expected to be offset by higher utilisation and revenue, top executives said.

The copper smelter reported a revenue of Rs 10,922 crore in the June quarter, generating an earnings before interest, tax, depreciation and amortization (EBITDA) of Rs 749 crore. This translates into an EBITDA margin of around 7%.

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“The EBITDA margin on sales this quarter has been about 7%.In the long run, we expect that to be about closer to the 5% range,” saidRobbie Singh, chief financial officer, Adani Enterprises.

Sales for the quarter were at 64,700 tonnes.

In February this year, the company had guided that it is aiming for an EBITDA of Rs 3,100 crore in fiscal 2027.

Kutch Copper is currently housed in Adani Enterprises, which hosts incubation businesses within the group. The smelter, one among the two prominent ones in the country, was commissioned in 2024 and is ramping up its initial capacity of 500,000 tonne. It plans to double capacity in the next few years.

“We are currently at 52% utilization...so we expect the utilization to head towards 75%. And consequently, with that kind of utilization increase, with the stable quarter-on-quarter EBITDA, yes, we expect that to remain in this Rs 800 (crore) range,” Singh told analysts after the company’s quarterly earnings.

While revenue will be “significantly” higher because of the ramping up of capacity, the EBITDA margin will be around 5% in the longer run, he said.

Globally, copper prices have been trading close to record highs. Smelters, though, make their profits from TC/RC (Treatment Charge and Refining Charge) charge, which is paid by miners to smelters for the conversion. The deficit in availability of copper concentrate in recent years has weighed on TC/RC margins, even pushing it to negative earlier this year.

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Industry, Peers

India turned a net importer of copper after Vedanta’s smelter in Tamil Nadu, which accounted for close to 40% of capacity in India then, was shut down in 2018 on account of environmental concerns.

India has been importing up to 500,000 tonnes of refined copper each year since then.

Kutch Copper’s ramp-up has been progressing “quite well”, AV Krishnan, the head for sourcing and marketing at the company said at a recent event. With capacity coming on board, India’s imports of copper are bound to decrease, he said.

Hindalco Industries, which operates the only other major copper smelter in the country, generated an EBITDA of Rs 918 crore in the June quarter, on sales of Rs 17,232 crore. This implies an operating margin of a little over 5%. Hindalco operates a 500,000-tonne smelter at Dahej in Gujarat.