Hindalco Industries reports a significant increase in profit driven by strong performance across its metals businesses, with record EBITDA driven by higher prices, efficiencies, and favourable market conditions, despite some disruptions overseas.
Hindalco Industries said its first-quarter profit was lifted by broad-based strength across its metals businesses, with group EBITDA rising to a record ₹13,481 crore in the three months to June 30, up 58% from a year earlier. The company said the result reflected stronger pricing, higher efficiencies and better operating leverage in India, even as some overseas businesses faced disruption.
The standout came from aluminium. Hindalco said its India upstream unit generated record EBITDA of ₹7,390 crore, with margins of 55% and EBITDA per tonne of $2,331. Copper also delivered a record quarter, with EBITDA up 36% to ₹918 crore despite a planned maintenance shutdown. In a separate company statement, Hindalco said downstream aluminium also remained strong, while the group continued to benefit from a lower effective tax rate and a weaker rupee, which boosted dollar earnings at Novelis.
Novelis, the US-based subsidiary, posted adjusted EBITDA of $516 million, up 30% year on year, helped by $225 million in run-rate cost savings and progress towards a longer-term structural cost reduction target of $350 million to $400 million. The company said the Oswego mill restarted in June after the fire that disrupted operations, and it expects most of the related drag to be recovered in the next financial year. Even so, shipments fell 5% to 916 kilotonnes, and Hindalco said a $70 million tariff hit will continue to weigh on results for the next few quarters.
Management also struck an upbeat tone on the wider market and its longer-term plans. Satish Pai, Hindalco’s managing director, said the aluminium market is likely to remain in deficit in 2026, supporting prices, while the group’s hedging for FY27 and FY28 remains in place. The company said growth projects, including the Bay Minet greenfield plant, the Aditya alumina refinery and captive coal mines, remain on schedule. Hindalco also highlighted a net debt-to-EBITDA ratio of 1.95 times, below its 2 times threshold, along with no fatalities, an improved lost-time injury frequency rate of 0.21 and 80% waste recycling.
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