Hindalco Ltd on August 12 reported 30% rise in consolidated net profit at Rs 4,004 crore for the quarter ended June 30, 2025, as higher sales volumes helped mitigate the impact of weaker aluminium prices. It reported consolidated net profit of Rs 3,074 crore in the year-ago period.
The Aditya Birla Group-owned firm's consolidated EBITDA rose 8.5% to Rs 8,673 crore in Q1FY26 as against Rs 7,992 crore in Q1FY25. The company's revenue from operations rose 13% to Rs 64,232 crore in Q1FY26 as compared to Rs 57,013 crore in Q1FY25.
Hindalco's shares were trading down 1.01 per cent at Rs 666 as of market close on August 12.
The company is confident of rising demand for aluminium and copper and flagged no impact of U.S. tariffs on the India business.
Satish Pai, Managing Director, Hindalco Industries, said, “After the record profitability of FY25, Hindalco sustained its growth momentum with a strong first quarter performance, driven by operational efficiencies, cost control, and an enhanced product mix. Aluminium India Upstream business continued to outperform with industry-best EBITDA margins of 44%. Aluminium India Downstream had a stellar quarter and reported its strongest quarterly performance with 2x EBITDA growth."
Bullish on India business
India business posted 9 per cent growth in the revenue at Rs 24,905 crore for the quarter ended June 30. Meanwhile, profit after tax rose 45 per cent at Rs 2,847 crore. India FRP market in Q1 FY26 is estimated to grow by ~5%, led by consumer durables, building & construction, Hindalco said in its investor presentation.
India Aluminium Upstream business reported Q1 EBITDA of Rs 4,080 crore, up 17 per cent YOY amid lower input costs, while Aluminium Downstream achieved a record EBITDA of Rs 229 crore, up 108 per cent compared to Q1FY25, due to higher value addition from products like battery enclosures, high end extrusions from Silvassa and premiumisation of flat rolled products Downstream revenue was at Rs 3,353 crore, up 17 per cent YOY.
Copper metal sales was at 124 KT, up 4 per cent YOY, with revenue rising 12 per cent to Rs 14,886 crore. However, EBITDA fell to Rs 673 crore from Rs 805 crore amid declining TC/RCs, the company said.
"The Copper business delivered a healthy EBITDA in line with our guidance, despite lower TC/RCs. Novelis recorded 1% growth in shipments, driven by all-time high quarterly beverage can volumes and accelerated cost reduction initiatives," Pai added.
Meanwhile, the company guided slower in the U.S. markets where demand from the housing sector, a high margin business, remains weak due to ongoing weakness in the market hit by tariffs. It sees resilience in the Chinese markets and a sluggish recovery for the EU.
Novelis
During the quarter, Novelis revenue rose to $4.7 billion from $4.2 billion in the same quarter last year, driven by higher average aluminium prices. But, adjusted EBITDA fell to $416 million from $500 million, due to restructuring charges, higher aluminium scrap prices, unfavourable product mix, and a net negative tariff impact.
During the quarter, shipments rose 1 per cent to 963 KT. The company is still making most sales from low margin beverage can than auto and specialty products sales. It expects strong growth from the beverage packaging industry to continue.
Novelis’ cost reduction measures targeting run-rate savings of over $75 million in FY26 are now expected to result in a higher FY26 run-rate savings of over $100 million, while maintaining the $300 million target for FY28.
"We see a healthier and stronger Novelis by Q3/Q4 driven by the cost savings initiatives and moving production to the U.S.," Pai said in a media call.
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