Hindalco Industries announced a robust performance for the second quarter of FY27, reporting a 52% year-on-year increase in consolidated business EBITDA to INR13,869 crore. Consolidated profit after tax saw a 59% jump to INR7,533 crore. The company highlighted strong operational performance across its aluminium and copper businesses, along with significant progress in its expansion projects and sustainability initiatives. Hindalco also provided an optimistic outlook on global and Indian economic conditions and its strategic growth plans.
Hindalco Industries Reports Strong Q2 FY27 Financial Performance
Hindalco Industries Limited announced its financial results for the second quarter of FY27, showcasing a significant increase in profitability and operational performance. The consolidated business EBITDA surged by 52% year-on-year to reach INR13,869 crore. Correspondingly, the consolidated profit after tax grew by an impressive 59% year-on-year, amounting to INR7,533 crore.
Key Business Segments Performance
The India business segment EBITDA demonstrated strong growth, up by 66% year-on-year to INR9,011 crore, with quarterly profit after tax rising by 91% year-on-year to INR5,852 crore. The non-LME-linked businesses, including Novelis, aluminium downstream, and copper, continued their growth trajectory, contributing INR6,860 crore this quarter. These segments are driven by value-added products, recycling, and operational excellence, showing a lower correlation to LME price movements.
India Upstream Aluminium
In the India upstream aluminium business, shipments increased by 1% year-on-year, while revenues saw a substantial jump of 33% year-on-year. Quarterly EBITDA stood at INR7,009 crore, up 55% year-on-year, driven by favorable macros and strong performance across the value chain. EBITDA per ton was $2,125, with EBITDA margins at 52%.
India Downstream Aluminium
The Indian downstream aluminium business also delivered strong performance, with quarterly shipments up 6% year-on-year at 119 KT. EBITDA increased by 26% year-on-year to INR329 crore, driven by product mix and premiumization. The resultant EBITDA per ton was $289.
Copper Business Highlights
The copper segment performed exceptionally well, with overall metal shipments at 116 KT, up 2% year-on-year. Quarterly copper EBITDA reached a record INR1,673 crore, a 164% increase year-on-year. This growth was attributed to strong operational performance, healthy domestic demand, and higher realisations from sulfuric acid and other by-products. The company expects an underlying quarterly EBITDA of around INR1,200-1,300 crore for the copper business.
Sustainability and Decarbonization Efforts
Hindalco continues to prioritize safety and sustainability. Notably, there were no fatalities across its Indian operations this quarter, and the LTIFR stands at 0.16. The company’s Aditya Alumina Refinery received the British Safety Council Award 2026. Significant progress was made in circularity, with 62% of total waste recycled or reused. Renewable energy capacity stands at 643 MW, with plans to reach 884 MW by FY27 exit. The aluminium-specific greenhouse gas footprint was 19.4 tons of CO2 per ton of aluminium.
Economic and Industry Outlook
The company noted that India’s domestic economy continues to show resilience, with the RBI forecasting GDP growth at 7.1% for FY27. Globally, IMF projects growth at 3.1% in 2026, with challenges arising from geopolitical tensions and commodity price volatility. The global aluminium market is expected to remain in deficit through calendar year 2026, with an estimated deficit of around 0.8 million tons. Global aluminium consumption grew 1% year-on-year in Q3 calendar year 2026.
Growth and Capital Allocation
Hindalco’s business generated strong cash flows of INR23,319 crore, a 57% year-on-year increase. The company invested INR20,719 crore in capital expenditure, up 83% year-on-year, focusing on growth and capacity expansion projects. Consolidated net debt to EBITDA remained strong at 1.80 times as of September 2026.
Novelis Performance
Novelis reported a normalized production at Oswego Hot Mill and received cumulative insurance recoveries of $519 million. The long-term EBITDA per ton guidance of $600 remains unchanged. A major milestone was achieved at Bay Minette with the production of its first cold rolled coil, with commercial shipments expected in Q1 FY28.
Future Expansion and Outlook
Hindalco is progressing well with its upstream expansion projects, aiming to double upstream capacity. Investments of over INR One lakh crores are planned over the next five years. The company is confident in India’s long-term demand outlook, driven by sectors like automotive, packaging, and industrial appliances, with India’s demand expected to grow at approximately 7% CAGR.
Source: BSE
