Hindalco Industries (HINDALCO) investor relations material

Executive summary

• Achieved record consolidated EBITDA of INR 13,481 crore, up 58% year-over-year, and consolidated profit after tax of INR 7,013 crore, up 75% year-over-year for Q1 FY 2027, with consolidated revenue reaching ₹84,825 crore, up 32% YoY.

• All business segments—upstream, downstream, Novelis, and copper—delivered strong performance, with Novelis showing resilience despite Oswego fire impact.

• Sustainability initiatives advanced, including 80% waste recycling/utilization, 6.3 million trees planted, and renewable energy capacity at 470 MW, targeting 884 MW by FY 2027.

• Operational resilience and safety improved, with zero fatalities and a lower LTIFR of 0.18.

• Market environment remains volatile due to geopolitical tensions, but India’s demand and growth outlook are robust.

Financial highlights

• India business segment EBITDA up 73% year-over-year at INR 8,606 crore; profit after tax up 86% at INR 5,301 crore.

• Upstream aluminum EBITDA at record INR 7,390 crore, up 81% year-over-year; EBITDA margin at 55%.

• Downstream aluminum EBITDA up 30% year-over-year at INR 298 crore; per ton EBITDA at $303.

• Copper EBITDA at record INR 918 crore, up 36% year-over-year, despite lower shipments due to planned shutdown.

• Novelis adjusted EBITDA at $516 million ($563/ton), up 24% year-over-year, including $47 million insurance proceeds.

Outlook and guidance

• India’s GDP growth projected at 6.7% for FY 2027; domestic aluminum demand expected to outpace global growth.

• Novelis maintains long-term EBITDA/ton guidance of $600+ and targets $350–400 million in cost savings by FY28 exit; cost reduction program on track.

• Downstream aluminum EBITDA/ton expected to normalize to $250 for the rest of the year; long-term target over $300.

• Copper and downstream aluminum volumes expected to recover in Q2.

• Net debt to EBITDA expected to remain steady in India due to high CapEx; Novelis leverage to decline as insurance recoveries and working capital normalization occur.