Hindalco Industries (HINDALCO) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue rose 13% year-on-year to ₹66,058 crore in Q2 FY26, with net profit up 21% to ₹4,741 crore, driven by strong performance in aluminium and downstream businesses.

• Novelis achieved adjusted EBITDA of $476 million (up 3% YoY), with net income up 27%, and is on track to mitigate most tariff impacts by year-end.

• Aluminium upstream EBITDA grew 22% YoY, with margins at 45%, the highest globally; downstream EBITDA hit a record, up 69% YoY.

• Copper EBITDA declined 24% YoY due to lower TCRC, partially offset by byproduct realization and efficiencies.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025.

Financial highlights

• Consolidated EBITDA increased 6% YoY to ₹9,684 crore; EPS rose to ₹21.35 from ₹17.59 YoY.

• Net debt/EBITDA improved to 1.02x as of September 2025, well below the 2x target.

• Robust cash generation of ₹8,762 crore in H1 FY26, up 45% YoY; capex rose 23% YoY to ₹11,330 crore.

• Novelis shipments were nearly flat at 941 kt; India aluminium shipments up 4% YoY.

• Hedging for Q3 at 31% ($2,700/ton), Q4 at 49% ($2,760/ton); FY27 hedging started at 10% ($2,800/ton).

Outlook and guidance

• Committed to keeping consolidated net debt/EBITDA below 2x over the next four years, with phased capex.

• Bay Minette project cost revised to $5 billion (₹44,293 crore), with phase two expansion planned; IRR expected just below double digits but above cost of capital.

• Aluminium downstream EBITDA expected to quadruple by FY30; India capex projected at ₹8,500 crore for FY26 and ₹11,000 crore for FY27.

• Novelis targets 75% recycled content and sub-3 tCO2e/tonne emissions by 2030.

• India’s GDP growth projected at 6.8% for FY26, with inflation easing to 2.6%.