Hindalco Industries Limited on Tuesday released its fiscal first quarter earnings report with profit growth of 30.25 per cent on-year at Rs 4,004 crore. The Aditya Birla Group company had recorded a profit of Rs 3,074 crore during the corresponding quarter of FY25. It posted revenue from operations at Rs 64,232 crore, reporting a growth of 12.66 per cent as against Rs 57,013 crore recorded during the first quarter of previous financial year. Consolidated EBITDA for the first quarter stood at Rs 8,673 crore, up 9 per cent on-year.
The robust results were driven by a strong performance by the India business, and a resilient performance by Novelis, it said in a regulatory filing.
India Aluminium Upstream business delivered EBITDA at Rs 4,080 crore, up 17 per cent, while Aluminium Downstream achieved a record EBITDA of Rs 229 crore, up 108 per cent compared to Q1FY25.
Despite headwinds, the company said, Novelis reported a 1 per cent increase in shipments driven by beverage can shipments which registered a solid 8 per cent growth over the prior year quarter.
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.”
Hindalco Q1: Segment-wise performance
Novelis reported shipments of 963 kilotonnes in the quarter, posting 1 per cent increase year-on-year, with revenue rising 13 per cent to $4.72 billion, supported by higher average aluminium prices. Adjusted EBITDA, however, declined 17 per cent to $416 million, impacted by elevated scrap prices and tariffs. “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,” the company said.
In the Aluminium (India) segment, the upstream business reported revenue of Rs 9,331 crore for the quarter, up 6 per cent, with EBITDA rising 17 per cent to Rs 4,080 crore, driven by lower input costs.
In the downstream business, sales volumes grew 6 per cent to 101 KT, while revenue rose 17 per cent to Rs 3,353 crore. The segment achieved a record EBITDA of Rs 229 crore, up 108 per cent, supported by higher value addition from battery enclosures, high-end extrusions from Silvassa, and premiumisation of flat rolled products.
Hindalco’s Copper (India) business delivered a steady performance in the quarter, with copper metal sales rising 4 per cent year-on-year to 124 KT and Copper Continuous Cast Rod (CCR) sales also up 4 per cent to 104 KT. Revenue grew 12 per cent to Rs 14,886 crore, supported by higher realisations from sulphuric acid, which helped offset the impact of sharply declining treatment and refining charges (TC/RCs). On the project front, the copper tubes initiative has entered the commissioning phase, while construction of the copper recycling facility is progressing as per schedule.