Hindalco Industries posted an increase of 75.1% year-on-year in net profit to Rs 7,013 crore for the first quarter of FY27, beating Bloomberg estimates of Rs 5,809 crore. The aluminium and copper major posted a net profit of Rs 4,004 crore in the year-ago quarter.
Its revenue from operations jumped 32.1% to Rs 84,825 crore in the June quarter from Rs 64,232 crore a year ago. The company’s revenue from operations, however, lagged Street estimates of Rs 86,688 crore. Earnings before interest, tax, depreciation, and amortisation (Ebitda) for the quarter was Rs 13,932 crore, ahead of Bloomberg estimates of Rs 11,011 crore and a rise of 76.2% from Rs 7,906 crore a year ago, benefiting from lower cost on account of change in inventories of finished goods, work in progress and stock in trade.
“Hindalco has started FY27 on a strong note, delivering record revenue, Ebitda and PAT, with every business segment contributing meaningfully to this performance. Our India business delivered another record quarterly performance while Novelis reported improved profitability supported by the successful restart of Oswego and continued benefits from cost optimisation measures,” Satish Pai, managing director, Hindalco Industries, said.
Net debt at the end of June more than doubled from a year ago period at Rs 77,495 crore. “We had very high working capital in copper (this quarter) and the inventory in Novelis was on higher side. Oswego now will pick up steam from July-August onwards,” Pai explained.
India business PAT was Rs 5,301 crore, showing a jump of 86%, the company said. Revenues at Rs 35,985 crore were up 24% year-on-year, while Ebitda at Rs 8,606 crore was up 73%. The increase in PAT was aided by the firm’s transition to the new tax regime effective April 1, it said. Consequently, effective tax rate reduced to 26% in Q1FY27 versus 30% in Q1FY26 and 34% in Q4FY26.
The company’s US subsidiary, Novelis, reported revenue of $5.8 billion, up 23% from the year ago, driven by higher metal prices. Adjusted Ebitda at $516 million was up 24%, supported by structural cost reduction initiatives. Ebitda per tonne in Q1 was $563, up from $432 the year ago. Shipments dipped to 916 kilotonne (KT) from 963 KT a year ago. Hindalco said that its Oswego hot mill, which was impacted by fire incidents, restarted in June and its Bay Minette plant commissioning is underway with commercial shipments expected from Q1FY28.
Segment-wise performance
Hindalco’s aluminium upstream segment reported revenue of Rs 13,403 crore, up 44% annually from Rs 9,331 crore in the same period last year. Meanwhile, aluminium downstream revenue was Rs 4,889 crore up 46% from Rs 3,353 crore in the first quarter of FY26. The copper segment posted revenue of Rs 17,232 crore up 16% versus Rs 14,886 crore in the same quarter previous year.
Aluminium upstream EBITDA was Rs 7,390 crore, up 81% annually, while downstream aluminium EBITDA at Rs 298crore was up 30% year on year. Copper business EBITDA was up 36% at Rs 918 crore.
Upstream aluminium shipments were up 3% on an annual basis at 335 KT against 325 KT in Q1FY26. Downstream aluminium shipments at 104 KT were up 3% year on year while copper shipments at 105 KT were down 16%.