Market Performance
Hindalco Industries, the flagship metals company of the Aditya Birla Group, reported strong Q1FY26 results on August 12, with a significant boost in profitability and revenue. The stock’s performance is likely to draw attention from market watchers following this robust quarterly update.
Main News
For the quarter ended June 30, 2025, Hindalco posted a 30% year-on-year (YoY) rise in consolidated net profit, reaching ₹4,004 crore, compared to ₹3,074 crore in the same period last year.
Revenue from operations also showed healthy growth, increasing 12.7% YoY to ₹64,232 crore from ₹57,013 crore in Q1FY25.
The company’s consolidated EBITDA stood at ₹8,673 crore, marking a 9% YoY rise. Importantly, the net-debt-to-EBITDA ratio improved to 1.02 times, down from 1.24 times last year.
Hindalco credited the strong performance to growth in its India aluminium operations and steady contributions from Novelis.
Company Financial Details
Revenue
- Consolidated revenue: ₹64,232 crore (+ 12.7% YoY)
- Novelis revenue: $4.72 billion (+ 13% YoY)
- Aluminium upstream revenue: ₹9,331 crore (+ 6% YoY)
- Aluminium downstream revenue: ₹3,353 crore (+ 17% YoY)
- Copper revenue: ₹14,886 crore (+ 12% YoY)
EBITDA
- Consolidated EBITDA: ₹8,673 crore (+ 9% YoY)
- Novelis adjusted EBITDA: $416 million (- 17% YoY)
- Aluminium upstream EBITDA: ₹4,080 crore (+ 17% YoY)
- Aluminium downstream EBITDA: ₹229 crore (+ 108% YoY – record high)
- Copper EBITDA: ₹673 crore (- 16% YoY)
EBITDA Margins & Key Metrics
- Aluminium upstream EBITDA margin: 44% (industry-best)
- Aluminium upstream EBITDA per tonne: $1,467 (+ 15%)
- Aluminium downstream EBITDA per tonne: $264 (+ 92%)
Segment-wise Performance
Novelis
- Shipments: 963 KT (+ 1% YoY)
- Beverage can shipments: + 8% YoY
- Cost-saving measures for FY26 now expected to yield over $100 million in run-rate savings.
Aluminium (India)
- Strong upstream growth driven by lower input costs.
- Downstream growth boosted by premium products like battery enclosures and high-end extrusions.
Copper (India)
- Metal sales: 124 KT (+ 4% YoY)
- Revenue up, but EBITDA faced pressure due to market conditions.
Summary of the Article
Hindalco’s Q1FY26 results highlight strong growth in both revenue and profit, with the India aluminium segment being the star performer. Novelis contributed steady shipment growth, despite margin pressures. Copper revenues rose, although profitability in that segment declined. Overall, Hindalco’s performance reflects solid operational execution and improved financial ratios, reinforcing its position as a key player in the metals sector.
Leave A Comment?