Hindalco Industries (HINDALCO) Q1 25/26 earnings summary

Executive summary

• Consolidated net profit after tax rose 30% year-over-year to INR 4,004 crore, reflecting strong operational efficiency and cost discipline.

• Net sales increased 13% year-over-year to $4.7 billion, driven by strong beverage packaging demand, while other end markets remained stable.

• Novelis shipments grew 1% year-over-year, with beverage packaging demand up 8%, but EBITDA declined 17% due to higher scrap prices and tariffs.

• Strategic investments and cost-reduction initiatives are progressing, with over $100 million in expected run-rate savings by end of FY26 and $300 million+ by FY28.

• Key expansion projects in aluminium and copper, including captive coal mines and specialty alumina, are progressing on schedule.

Financial highlights

• Consolidated revenue from operations reached ₹64,232 crore, up from ₹57,013 crore year-over-year.

• Consolidated net profit attributable to owners was ₹4,004 crore, up from ₹3,074 crore year-over-year.

• Novelis quarterly EBITDA was $416 million, down 17% year-over-year; adjusted EBITDA per tonne at $432, down 18%.

• Aluminium downstream EBITDA per ton hit a record $264, up 22% year-over-year.

• Copper EBITDA was INR 673 crore, down 16% year-over-year due to lower TCRGs.

Outlook and guidance

• Novelis expects margin improvement in the second half of FY 2026, supported by cost reduction and strong beverage packaging demand.

• India aluminium downstream volumes and EBITDA per ton are expected to improve as new capacity ramps up, targeting $250–$300 per ton.

• CapEx guidance for India is INR 7,500–8,000 crore for FY 2026, peaking at INR 15,000 crore next year.

• FY26 capital expenditures for Novelis projected between $1.9 billion and $2.2 billion.

• RBI projects India's GDP growth at 6.5% for FY 2026, with inflation expected to moderate to 3.7%.