National Aluminium Company Limited (NALCO) has announced its financial results for the second quarter and first half of FY27, reporting record-breaking performance. The company achieved an all-time high revenue of INR11,143 crores and EBITDA of INR5,539 crores for the first half of the fiscal year. Profit Before Tax (PBT) and Profit After Tax (PAT) also reached their highest levels since inception. The company has also provided an update on its expansion projects, including the 5th stream refinery and brownfield smelter expansion.
NALCO Achieves Record Financial Performance in H1 FY27
National Aluminium Company Limited (NALCO) has declared its financial results for the second quarter and the first half of the fiscal year 2026-27 (H1 FY27), showcasing exceptional performance with several all-time high achievements.
Key Financial Highlights
- Revenue: NALCO recorded an all-time high revenue of INR11,143 crores for H1 FY27.
- EBITDA: The company achieved an all-time high EBITDA of INR5,539 crores in the same period.
- Profit Before Tax (PBT): PBT reached an all-time high of INR5,160 crores.
- Profit After Tax (PAT): PAT also hit a record high of INR3,837 crores for H1 FY27.
- Q2 FY27 Performance: The net profit for the second quarter (Q2 FY27) stood at INR1,835 crores, marking a significant increase of 28% year-on-year.
- H1 FY27 Net Profit Growth: The first half net profit saw a substantial year-on-year growth of 54% compared to INR3,837 crores in the previous year (FY25-26).
Project Updates
During the earnings call, NALCO’s management provided updates on key expansion projects:
- 5th Stream Refinery: The 5th Stream refinery is in an advanced stage of mechanical completion, with 90-92% physical completion achieved. Integrated trials are planned for late December, with production expected to commence by late December or early January. Full capacity utilization is anticipated by the next financial year.
- Pottangi Mines: Aggressive work is underway, with efforts focused on resolving local resistance issues. The company is optimistic about starting operations within the next two to three months.
- Utkal Coal Mine Expansion: The mine is operating at its planned capacity, with clearances for 4.8 million tons of production already in place.
- Brownfield Smelter Expansion (Angul): The detailed project report (DPR) is expected to be completed by January-February ’28, with board approval anticipated in February. Investment for this expansion is estimated at INR17,000-18,000 crores. Land acquisition is in its advanced phase, with groundwork expected to commence in January-February ’28. Mechanical completion is targeted for December ’30, with commissioning in Q1 ’31. A JV with Neyveli Lignite Corporation for the power plant is progressing.
- Greenfield Smelter (Andhra Pradesh): This project is in the early stages, with technology license agreements in place and DPR preparation underway.
Cost of Production and Pricing
The company addressed concerns about the increase in the cost of production, attributing it to raw material price hikes in caustic soda, CP coke, and fuel oil. However, NALCO expects to mitigate these costs through improved economic efficiency and techno-economic measures in the second half of the fiscal year, aiming for a reduction of INR500 to INR1,000 per ton of alumina. Alumina prices are projected to remain in the range of USD 370 to USD 380 per ton, influenced by global demand-supply dynamics and geopolitical situations. Aluminium pricing is entirely dependent on LME movements, with no hedging policy currently in place for commodities.
Outlook
NALCO anticipates stable margins in the second half of the fiscal year, driven by the new refinery’s contribution and cost-saving initiatives. The company is also focusing on managing its coal stock effectively to control power and fuel costs. The overall capex for the year is projected at INR1,800 crores, with half of it already incurred in the first half. The company expects to maintain a healthy cash balance of INR12,000 crores by the end of the fiscal year.
Source: BSE
