Hindalco Industries Ltd
BSE:500440
Hindalco Industries Ltd
Hindalco Industries Ltd., a flagship enterprise of the Aditya Birla Group, has woven an intricate narrative in the metals sector since its establishment in 1958. Initially exploring the vast expanse of aluminum and copper production, the company has cleverly sculpted itself into a formidable force on the global stage. At its core, Hindalco thrives by extracting bauxite and processing it into alumina, which is then transformed into aluminum at its smelters. This aluminum becomes the raw material for various applications, ranging from transportation to packaging and construction. Beyond aluminum, Hindalco’s copper division ensures the company’s resourcefulness. Through its fully integrated operations, the company deals in copper cathodes and continuous cast copper rods, capitalizing on both industrial demand and the scrap recycling process, closing the loop in its sustainable practices.
The company’s agility and resilience stand out through its judicious expansion, particularly its acquisition of Novelis in 2007. This strategic move catapulted Hindalco into the realm of global dominance as the largest flat-rolled products and recycler of aluminum. Novelis has enabled Hindalco to not only venture beyond India's borders but also fortify its supply chain, capturing a diverse clientele from the automotive and beverage industries. With an astute focus on value-added products, Hindalco optimizes margins and hedges against commodity price volatility. Its financial success story is written not just in the sheets of metal it produces, but in its adept capability to maneuver global market dynamics while adhering to a path of sustainability and innovation.
Hindalco Industries Ltd., a flagship enterprise of the Aditya Birla Group, has woven an intricate narrative in the metals sector since its establishment in 1958. Initially exploring the vast expanse of aluminum and copper production, the company has cleverly sculpted itself into a formidable force on the global stage. At its core, Hindalco thrives by extracting bauxite and processing it into alumina, which is then transformed into aluminum at its smelters. This aluminum becomes the raw material for various applications, ranging from transportation to packaging and construction. Beyond aluminum, Hindalco’s copper division ensures the company’s resourcefulness. Through its fully integrated operations, the company deals in copper cathodes and continuous cast copper rods, capitalizing on both industrial demand and the scrap recycling process, closing the loop in its sustainable practices.
The company’s agility and resilience stand out through its judicious expansion, particularly its acquisition of Novelis in 2007. This strategic move catapulted Hindalco into the realm of global dominance as the largest flat-rolled products and recycler of aluminum. Novelis has enabled Hindalco to not only venture beyond India's borders but also fortify its supply chain, capturing a diverse clientele from the automotive and beverage industries. With an astute focus on value-added products, Hindalco optimizes margins and hedges against commodity price volatility. Its financial success story is written not just in the sheets of metal it produces, but in its adept capability to maneuver global market dynamics while adhering to a path of sustainability and innovation.
EBITDA Growth: Consolidated EBITDA was up 6% year-on-year to INR 8,762 crores, driven by strong performance in the India Aluminum business.
PAT Impacted by Exceptionals: Consolidated profit after tax fell 45% year-on-year to INR 2,049 crores due to exceptional items, mainly related to the Novelis Oswego plant fires.
Strong India Business: India Aluminum segment posted record quarterly PAT of INR 3,581 crores, up 24% year-on-year, and upstream EBITDA per ton reached $1,572.
Novelis Update: Novelis shipments declined due to Oswego outages, but adjusted EBITDA per ton improved 22% year-on-year to $495. Oswego hot mill restart is expected late Q1 FY '27.
Debt & Capex: Net debt increased, mainly from Novelis-related cash requirements and working capital in Copper, but management expects reversals and remains committed to keeping net debt/EBITDA near 2x.
Cost Guidance: India Aluminum production cost is expected to rise about 1% in Q4, mainly due to increases in CP coke prices.
Growth Initiatives: Bay Minette facility commissioning is on track for second half of the year. India Capex will remain high (INR 10,000–12,000 crores) to support expansion.
Market Environment: Aluminum and copper demand remain robust, with India outpacing global market growth. Aluminum prices have strengthened, and the global market ended CY '25 with a modest deficit.
