Hindalco Industries reported a 21% increase in net profit to Rs 4,741 crore in the second quarter of FY26, beating Bloomberg estimates of Rs 4,320 crore. It had posted a net profit of Rs 3,909 crore in the year-ago period. The aluminium and copper major’s revenue from operations rose to Rs 66,058 crore in the September quarter, up 13% year-on-year from Rs 58,203 crore. Revenue from operations was also ahead of Street estimates of Rs 64,963 crore.
Earnings before interest, taxation, depreciation, and amortisation (Ebitda) for the quarter was Rs 9,684 crore, ahead of Bloomberg estimates of Rs 8,303 crore and up 6% from Rs 9,100 crore in the year-ago period, benefiting from lower input coal costs in the quarter.
“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,” Satish Pai, managing director, Hindalco Industries, said.
India business PAT was Rs 3,059 crore, a rise of 7%, the company said. Revenues at Rs 25,494 crore were up 10% year-on-year, while Ebitda at Rs 5,419 crore was up 15%. The company’s US subsidiary, Novelis, reported revenue of $4.74 billion, up from $4.3 billion in the same quarter last year, driven by higher average aluminium prices. Business segment Ebitda for the subsidiary was down 8.65% at $422 million, impacted by tariffs. Excluding the $54-million tariff impact, Ebitda for the second quarter was up 3% at $476 million.
“We have a mitigation strategy in place, relocating more manufacturing in the US versus Canada, and that will help us to continue mitigating more impact to the extent that towards the end of this fiscal a very significant part of the mitigation would have happened,” the management said in an earnings call. Ebitda per tonne at Novelis continued to be under $500 for a consecutive fourth quarter at $448, down 8.4%, also due to negative impact of tariffs. Excluding the impact of tariffs, Ebitda per tonne came in at $506.
Novelis net income attributable to common shareholders was up 27% at $163 million. Shipments for the second quarter of FY26 were flat at 941 kilotonne (KT). On the firm’s Bay Minette project, the management said that the total cost will be $5 billion and it has completed 100% of the engineering.
“We discovered that there was even more opportunity in Bay Minette for cost optimisation even in phase one,” the company said. Hindalco’s aluminium upstream segment reported revenue of Rs 10,078 crore, up 10% from Rs 9,125 crore in the same period last year. Meanwhile, aluminium downstream reported revenue of Rs 3,809 crore, up 20% from Rs 3,161 crore in the second quarter of FY25. The copper segment posted revenue of Rs 14,563 crore versus Rs 13,114 crore in the year-ago period.
Aluminium upstream Ebitda was Rs 4,524 crore, up 22%, while downstream aluminium Ebitda at Rs 261 crore was up 69% year-on-year. Copper business Ebitda was down 24% at Rs 634 crore. Upstream aluminium shipments were up 4% at 341 KT against 328 KT in Q2FY25. Downstream aluminium shipments at 113 KT were up 10% year-on-year while copper shipments at 124 KT were up 4%.