Hindalco Industries forecasts its net debt will peak at around ₹80,000 crore as it accelerates a ₹50,000 crore investment drive, while reporting its strongest quarterly profit in FY27 driven by record earnings in aluminium and copper businesses.
Hindalco Industries expects its consolidated net debt to top out at about ₹80,000 crore as it pushes ahead with an investment cycle worth nearly ₹50,000 crore across aluminium, copper and recycling, managing director Satish Pai said on Friday. The Aditya Birla Group metals company delivered its strongest quarterly results in the first quarter of FY27, with net profit rising 75% to ₹7,013 crore, helping to underline the strength of the core business even as borrowing climbed with the build-out of new capacity. According to the company, revenue rose 32% to ₹84,825 crore and consolidated Ebitda surged 73% to a record ₹14,989 crore.
Pai said the debt increase largely reflected higher inventories and working capital tied to the investment phase, and he described the current level as close to the peak. Hindalco’s net debt stood at ₹77,495 crore at June 30, 2026, almost double the level a year earlier, while net debt to Ebitda rose to 1.95 times from 1.02 times. The company said it expects leverage to ease once working capital normalises, with Pai adding that the focus is now on delivering large projects on schedule and within budget.
The earnings surge was led by record performances across the group’s main businesses. Aluminium upstream Ebitda jumped 81% to ₹7,390 crore, copper Ebitda increased 36% to ₹918 crore and Novelis, the US-based aluminium rolled products arm, posted adjusted Ebitda of ₹4,875 crore, up 37% year on year. Reporting on Pai’s comments, The Economic Times said he expects Novelis to improve further in FY27, with a broader recovery in the overseas business helping to support deleveraging from FY28. Separate industry commentary has also pointed to a recovery year for Novelis as restart activity and new facilities come on stream.
Hindalco’s immediate capital spending plan remains unchanged at about ₹12,000 crore for FY27, with money directed towards refinery expansion, smelter capacity, copper recycling and downstream products such as battery foil and battery enclosures. The company said the first phase of the Aditya Aluminium smelter expansion remains on track for FY28 production, while the copper smelter is scheduled for commissioning in FY29. A key strategic shift is a bigger push into domestic scrap recycling: Hindalco wants to become a larger user of Indian scrap in both aluminium and copper, cutting import dependence over the next three years for aluminium and lifting domestic scrap use to 60% to 70% of copper requirements within two years. The copper and e-waste recycling project is due in FY27.
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