Hindalco Industries Reports 59% Rise in Q2 Net Profit at ₹7,533 Crore

Hindalco Industries, an Aditya Birla group company, has reported a net profit of ₹7,533 crore for the September quarter, marking a 59 percent increase from ₹4,741 crore recorded in the corresponding period of the previous year. The growth was primarily driven by better realisations and firm metal prices.

The company's revenue for the quarter increased by 39 percent to ₹91,708 crore, compared to ₹66,058 crore in the previous year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 42 percent to ₹13,757 crore, up from ₹9,684 crore.

Aluminium sales volumes remained nearly flat at 3.45 lakh tonnes compared to 3.41 lakh tonnes year-on-year. However, segment revenue grew 33 percent to ₹13,364 crore, and EBITDA jumped 55 percent to ₹7,009 crore. EBITDA per tonne improved to $2,125 from $1,521 during the quarter under review.

Aluminium downstream sales increased by 6 percent to 1.19 lakh tonnes, with segment revenue rising 45 percent to ₹5,511 crore. Downstream EBITDA increased by 26 percent to ₹329 crore, supported by a favourable product mix, premiumisation, and higher shipments.

Satish Pai, Managing Director of Hindalco Industries, stated that the company delivered record profits despite high coal and CP coke prices, supported by an integrated business model across upstream metals and downstream value-added products. He noted that the non-LME-linked businesses recorded EBITDA growth of nearly 50 percent, backed by stable operations at Novelis and strong performances in the copper and aluminium downstream divisions.

Addressing cost pressures, Pai mentioned that coal prices are expected to rise further by 5 percent in the December quarter due to higher demand and tight supply. Current factory coal inventory levels are low, requiring purchases through spot auctions following the curtailment of linkage supplies.

Looking ahead, Hindalco plans to focus on the commissioning and ramp-up of Bay Minette, copper recycling, aluminium battery foil, Aditya FRP, and Inner Grooved Tubes to accelerate the share of non-LME-linked businesses. The company anticipates aluminium prices to moderate between $2,600 and $2,800 a tonne by FY28 if geopolitical issues settle and supplies from West Asia resume.

In the copper segment, metal sales rose 2 percent to 1.16 lakh tonnes, while Continuous Cast Rod sales remained flat at 96,000 tonnes. Copper business revenue grew 47 percent to ₹21,374 crore due to high metal prices and better by-product realisations. Novelis reported a marginal decline in sales to 9.19 lakh tonnes, while revenue jumped 25 percent to $5.9 billion and EBITDA rose 20 percent to $508 million, with the fire-hit Oswego hot mill operating at normal production levels.

"Hindalco's Q2 performance highlights the resilience of an integrated business model during periods of commodity price volatility. By expanding its downstream and non-LME-linked operations, the company is effectively managing external pressures such as rising input and coal costs. For industrial enterprises, balancing upstream output with value-added downstream products remains a reliable strategy to protect profit margins against cyclical market fluctuations." — Dr. Shishir Gupta, Founder & CEO, StartupLanes