Hindalco Industries on November 7 reported higher net profit driven by a strong performance by the India business, and a resilient performance by its U.S. unit Novelis. The Aditya Birla Group-owned firm, one of India's biggest aluminium and copper producers, posted a 21.3 per cent rise in consolidated net profit to Rs 4,741 crore for the three months ended September 30.
The firm's consolidated revenue rose 13 per cen t to Rs 66,058 crore in Q2FY26 as against Rs 58,210 crore in Q2FY25. EBITDA rose 6 per cent at Rs 9,100 crore on a consolidated basis. On a standalone basis, net profit rose 20 per cent to Rs 2,266 crore from Rs 1,891 crore a year earlier. Standalone revenue rose 11.3 per cent to Rs 24,780 crore in the quarter ended September 30.
"Hindalco continued its growth momentum amid global volatility, delivering strong performance in both volumes and profitability. This performance was driven by robust
contribution from India business, disciplined cost management and operational efficiencies across segments," said managing director, Satish Pai.
At 2:05 pm on November 7, Hindalco shares were trading 0.5% higher at Rs 792 apiece.
India business
Hindalco's India business revenue rose 10 per cent to Rs 25,494 crore, powered by strong aluminium upstream and downstream performance. In Q2, upstream revenue rose 10 per cent at Rs 10,078 crore, while EBITDA surged 22 per cent to Rs 4,524 crore, driven by higher volumes and realisations.
Meanwhile, Hindalco also announced plans to expand its Aditya Aluminium unit in Odisha, adding 193 KT capacity, with a project cost of Rs 10,225 crore and expected commissioning in FY29.
Its downstream revenue too increased 20 per cent at Rs 3,809 crore in the quarter, with EBITDA up 69% on account of higher shipments and favourable product mix, the company said in a press release.
Copper business revenue was up 11 per cent in Q2 but sales fell 3 per cent at 113 KT.
Novelis
During the quarter, Novelis revenue rose to $4.7 billion, up 10%, driven by higher average aluminium prices. However, adjusted EBITDA at $422 million, down 9%, impacted by a net negative tariff impact of $54 million in the second quarter.
The company's U.S. subsidiary, on November 4, reported a 27 percent year-on-year rise in net income attributable to our common shareholders to $163 million. The company said that it rolled product shipments of 941 kilotonnes, which was in line with the prior year period.
Speaking about the fire incident which began on September 16 at its plant in New York’s Oswego, Novelis said that no injuries were fortunately reported. The damage from the fire was mostly localized to the hot mill area, and the teams York. The incident led the company to book $21 million in charges in Q2.
"The plant is insured for property damage and business interruption losses related to such events. But there will be some timing lag between the cash impact and our ability to recover the insurance claim," Chief Executive Officer, Steve Fisher, told analysts in a post-earnings call this week.
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