- Strong aluminium business, Novelis operations drive Q2 growth
- Hindalco plans INR 10,225 crore Aditya Aluminium expansion
Hindalco Industries Ltd., the metals flagship of the Aditya Birla Group, reported a strong 21% y-o-y rise in consolidated net profit to INR 4,741 crore for the second quarter of FY’26, driven by robust performance in its Indian aluminium business and resilience at its US-based subsidiary, Novelis. The company’s consolidated revenue rose 13% y-o-y to INR 66,058 crore, while consolidated EBITDA stood at INR 9,684 crore, up 6% from the same period last year.
Managing Director Satish Pai said the company’s performance was supported by disciplined cost management, operational efficiencies, and strong execution across segments. He added that Hindalco’s integrated business model and prudent capital allocation continue to deliver consistent results despite global volatility.
The upstream aluminium business reported an EBITDA of INR 4,524 crore, up 22% y-o-y, with industry-best margins of 45%, driven by higher volumes and realisations. The downstream aluminium segment achieved an all-time high quarterly EBITDA of INR 261 crore, up 69% y-o-y, supported by higher shipments and an improved product mix. The company also announced the second phase of its Aditya Aluminium expansion, adding 193,000 t capacity at a cost of INR 10,225 crore, with commissioning expected in FY’29.
The copper segment maintained steady performance with an EBITDA of INR 634 crore, in line with guidance, amid lower treatment and refining charges. Revenue rose 11% y-o-y to INR 14,563 crore, aided by higher sulphuric acid realisations. Copper tubes and recycling projects are progressing as per schedule.
At Novelis, shipments remained stable at 941,000 t, while revenue grew 10% to $4.7 billion due to higher aluminium prices. Adjusted EBITDA declined 9% y-o-y to $422 million, impacted by tariffs, though cost-saving initiatives are on track to achieve $125 million in savings by FY’26 and $300 million by FY’28. Hindalco will invest $750 million in Novelis over the next few months to strengthen liquidity. The Oswego plant in New York is expected to restart its hot mill by the end of November 2025.
Hindalco maintained a strong financial position, with a net debt-to-EBITDA ratio of 1.23x as of 30 September 2025. Pai highlighted that the company remains at a “negative net debt” level, allowing flexibility for expansion and strategic investments. He added that domestic aluminium demand remains strong across packaging, automotive, and electrical sectors, positioning Hindalco for another strong quarter ahead.
“Our focus remains on climate action, circularity through waste recycling, water stewardship, and biodiversity protection,” Pai said, reaffirming Hindalco’s commitment to sustainable and resilient growth.
Outlook
Hindalco remains optimistic about the coming quarters, supported by strong domestic aluminium demand from the packaging, automotive, and electrical sectors. The company expects steady performance in its copper business and gradual margin recovery at Novelis as cost-saving measures take effect. Ongoing capacity expansions and focus on sustainability and efficiency are likely to further strengthen its growth momentum in FY’26.
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