Hindalco Industries reports a 75% annual rise in first-quarter profit, boosted by higher aluminium and copper prices amid geopolitical supply disruptions. The Indian metals giant plans significant capacity expansions despite market volatility, even as recent setbacks at its US subsidiary impacted full-year profits.
Hindalco Industries Ltd. posted a sharp rise in first-quarter profit as higher metal prices, buoyed by supply disruptions linked to the Middle East war, lifted earnings and helped the Indian aluminium and copper producer beat market expectations. Net income for the three months to June climbed 75% from a year earlier to 70.1 billion rupees, or $736 million, above the 58.1 billion rupees analysts had forecast, according to a filing to stock exchanges. Revenue rose 32% to 848.3 billion rupees.
The result extends a period in which Hindalco has benefited from firmer base-metal pricing, even as later quarters showed how exposed the group remains to operational setbacks. Business Standard reported that elevated aluminium and copper prices supported earnings through the year, while the company’s global subsidiary Novelis remained a key driver of performance. In the latest set of results, Hindalco also pointed to stronger downstream operations and said it plans to expand aluminium capacity from 1.3 million tonnes to 1.7 million tonnes and copper smelting capacity from 400 kilotonnes to 700 kilotonnes.
That growth plan comes against a backdrop of heavy capital spending. Business Standard reported that Hindalco lifted capital expenditure by 47% year on year to 31,600 crore rupees in FY26, with India investment guidance of 12,000 crore rupees in FY27. The company has framed that outlay as part of a broader push to capture demand in metals and processed products, even as commodity markets remain volatile.
Later results showed the cycle can turn quickly. Hindalco’s Q2 FY26 profit rose 21% year on year to 4,741 crore rupees on revenue of 66,058 crore rupees, but Livemint reported that Q4 FY26 net profit then fell 51% to 2,597 crore rupees after higher costs linked to a fire at Novelis. For the full year, another fire at the US subsidiary weighed on earnings, with annual profit attributable to owners slipping 16% to 13,391 crore rupees. Even so, shares of metal companies have rallied this year, with the Economic Times saying Hindalco became the top performer on the Nifty Metal index as aluminium prices climbed to their highest level since 2022.
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