Hindalco Industries achieved its highest-ever quarterly consolidated net profit of ₹7,013 crore for Q1 FY27, representing a remarkable 75% increase from ₹4,004 crore in the year-ago period. The company's consolidated revenue rose 32% year-on-year to a record ₹84,825 crore, while EBITDA surged 73% to an all-time quarterly high of ₹14,989 crore. As per The Economic Times, all three metrics - the bottom line, the top line and operating profits - were at record highs, underpinned by the surge in aluminium prices. Average aluminium prices in the June quarter were $3,577 per tonne on the London Metal Exchange (LME), with the West Asian crisis leading to the largest-ever supply shock for aluminium, driving up prices and creating a global deficit of 1 million tonne of aluminium in 2026, up from 300,000 tonne estimated before the conflict. Following the strong results announcement, Hindalco shares surged on BSE and NSE, outperforming the benchmark Sensex which fell 0.58%.
Hindalco's consolidated net debt stood at ₹77,495 crore as of June 30, 2026, compared with ₹34,257 crore a year ago, with net debt-to-EBITDA increasing to 1.95 times from 1.02 times. Managing Director Satish Pai confirmed that the company expects consolidated net debt to peak at around ₹80,000 crore as it enters a high-investment phase with nearly ₹50,000 crore of projects under execution. Pai stated that "This is the maximum, ₹80,000 crore is sort of the peak," adding that inventory levels and working capital requirements contributed to the increase. The company expects deleveraging once working capital normalises, with Pai noting that "We are close to the peak debt level." As per The Economic Times, Hindalco will now focus on executing projects that are in various stages of completion, including the Aditya alumina refinery, two phases of the Aditya aluminium smelter and its copper smelter, while downstream projects include the battery enclosure at Chakan, AC Fins, and the Aditya Flat Rolled Products.
Despite beating Q1 estimates, Hindalco's managing director Satish Pai signalled the company would remain financially disciplined while pursuing bauxite mines despite record auction premiums and intensifying competition. As reported by Mint, Pai stated that "We have existing mines, and as we expand, we are looking to acquire new mines. But it would be fair to say that we are going to be a lot more financially prudent." The company will avoid paying excessively high premiums that could permanently raise production costs, even as competition for bauxite resources heats up with Vedanta Aluminium emerging as the highest bidder for the Karlapat bauxite block in Odisha after quoting a record auction premium of 175%. Pai emphasized that "We have been in this business for over 20 years. We have an established base, we have assets on the ground, land on the ground from where we can build on."
Hindalco's India business delivered particularly strong growth, with revenue increasing 24% to ₹30,985 crore from the previous year. Business segment EBITDA rose 73% to ₹8,606 crore, while profit after tax surged 86% to ₹5,301 crore. The rise in India profit was also aided by Hindalco's transition to the new tax regime from April 1, which reduced its effective tax rate to 26% from 30% in the year-ago quarter. Basic earnings per share rose to ₹31.58 from ₹18.03 in the corresponding quarter. The company noted that Aluminium Upstream, Aluminium Downstream, Copper and Novelis all delivered their highest-ever quarterly EBITDA during the period, with Pai highlighting that "All of Hindalco's businesses performed well during the quarter, with Novelis showing signs of recovery after operational disruptions."
The aluminium upstream business reported revenue of ₹13,403 crore, up 44% year-on-year, while EBITDA surged 81% to a record ₹7,390 crore. Shipments rose 3% to 335 kilotonnes during the quarter. EBITDA per tonne increased 59% to $2,331, while the upstream EBITDA margin expanded to 55% from 44% in the corresponding quarter, supported by favourable aluminium prices and stronger operating performance. The company's Downstream Aluminium business EBITDA stood at ₹298 crore during the quarter, compared to ₹229 crore last year, with EBITDA per tonne at $303 from $264 in the previous quarter. The aluminium business performance was driven by favourable macros and stronger operational performance during the quarter, while growth for the downstream business was aided by favourable product mix and higher shipments.
Hindalco's Copper business EBITDA stood at ₹918 crore for the June quarter, well above the CNBC-TV18 poll estimate of ₹800 crore, compared to ₹673 crore in the base quarter. EBITDA per tonne for the copper business stood at $926 from $635 last year and $775 in the previous quarter. The performance of the Copper business was backed by strong operational performance and strong realisations from by-products like Sulphuric Acid. The company noted that Aluminium Upstream, Aluminium Downstream, Copper and Novelis all delivered their highest-ever quarterly EBITDA during the period.
Hindalco announced a significant capacity expansion project at its Kuppam unit in Chitoor, Andhra Pradesh, with an investment of ₹768 crore (including interest during construction of ₹40 crore). The project will increase existing capacity by up to 10 KTPA and will be funded through internal accruals and debt. The company has retained its FY27 capital expenditure plan of around ₹12,000 crore, with investments focused on refinery expansion, smelter capacity, copper recycling and downstream businesses. Aditya Aluminium Smelter Phase 1 is on track to begin production in FY28, while the copper smelter is targeted for FY29 commissioning. A key shift in Hindalco's strategy will be building a larger domestic recycling ecosystem for aluminium and copper, with Pai stating that "The big new thing in our strategy is that Hindalco is going to become big in utilising scrap in India, both for aluminium and copper." Currently, the company sources about half of its aluminium scrap requirement domestically and imports the remaining portion, with plans to reduce aluminium scrap import dependence over the next three years.
