Hindalco Banks On Metal Prices, Operational Efficiency To Maintain Growth In FY26 After Strong Q1 Results

Aluminium and copper giant Hindalco Industries expects to replicate its Q1 performance across the remainder of the current financial year, according to its Managing Director, Satish Pai. If the London Metal Exchange (LME) price for aluminium remains between $2,400-2,600 per tonne, Hindalco Industries is confident of replicating its first quarter performance across FY26.

“Overall, if you take the India performance, an extremely strong quarter (Q1FY26). When I look at the remaining three quarters of this year, if the LME stays between $2400 and $2600, then we are fairly confident that the rest of the three quarters are going to be as strong as the first quarter,” he said during a conversation with NDTV Profit on Aug. 13.  

He underlined Hindalco Industries' integrated business model, which balances upstream and downstream operations.

“So, when I look at both sides of the upstream-downstream business, I'm fairly confident that FY26, we are going to give a good performance because of our integrated business model. I think the India business will continue to do strong and Novelis (US subsidiary) will be significantly recovering in the second half of this year,” he said. 

Hindalco Industries’ aluminium upstream business delivered an Ebitda margin of 44%, with an Ebitda per tonne of nearly $1,500. It marked one of the strongest performances in the last 15 quarters.

The copper business remained resilient with a contribution of Rs 673 crore to Ebitda in Q1. This happened despite subdued Treatment and Refining Charges (TCRCs) due to tight global supply and strong demand. 

“Supply and demand are very tight because very few copper mines have come into the market and the demand is extremely strong. That’s why for copper, we have been guiding at around Rs 600 crores per quarter this year, compared to last year, where we were doing over Rs 800 crore,” the top executive underlined.

In Q1FY26, the metals flagship of the Aditya Birla Group reported a remarkable 30% year-on-year (YoY) rise in net profit at Rs 4,004 crore. Its consolidated revenue from operations stood at Rs 64,232 crore, up 13% YoY, while Ebitda increased 9% to Rs 8,673 crore in Q1FY26.

Hindalco Industries’ Aditya FRP (Flat Rolled Products) and copper IGT (Inner Grooved Tubes) projects are on track for commissioning in the July-September quarter. 

Aditya FRP is expected to produce 70,000 tonnes of rolled products and the copper IGT facility will contribute 15,000 tonnes of copper tubes this financial year.

Shares of Hindalco Industries closed 5.09% higher at Rs 701.6 apiece on the NSE. In comparison, the benchmark Nifty50 settled at 24,619.35, up 0.54%.