Hindalco sees record Q2 net profit of ₹75.33b, Novelis revenue rises 25%

Hindalco Industries reported its highest-ever quarterly net profit of INR 75.33 billion (USD 802 million) in the second quarter of FY2027, up 59 per cent from INR 47.41 billion (USD 505 million) a year earlier, supported by stronger earnings across its aluminium, copper and Novelis businesses.

Consolidated revenue from operations rose 39 per cent year on year to INR 917 billion (USD 9.8 billion) in the quarter ended September 30, 2026. EBITDA increased 42 per cent to INR 137.6 billion (USD 1.5 billion), compared with INR 97 billion (USD 1 billion) in Q2 FY2026.

The company’s aluminium upstream business rose 55 per cent to INR 70 billion (USD 745 million) in quarterly EBITDA. Earnings from non-LME-linked businesses rose 50 per cent to INR 68.6 billion (USD 731 million).

Copper also delivered a record quarter, with EBITDA increasing 164 per cent to INR 16.73 billion (USD 178 million). 

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Hindalco managing director Satish Pai said, “Our long-term strategy of building an integrated business model across upstream metals and downstream value-added products is translating into a stronger and more resilient earnings profile.” 

Aluminium and Novelis performance

Hindalco’s aluminium upstream revenue in India increased 33 per cent year on year to INR 13,364 crore (USD 1.4 billion) in Q2 FY2027 (a year ago USD 1.07 billion in Q2). EBITDA rose to INR 70.1 billion (USD 747 million) from INR 45.24 billion (USD 482 million), while EBITDA per tonne increased 40 per cent to USD 2,125 (USD 1,521 previously). The company attributed the improvement to favourable market conditions, higher shipments and stronger operational performance.

Upstream aluminium shipments stood at 345,000 tonnes, compared with 341,000 tonnes in the corresponding quarter last year. The business maintained an EBITDA margin of 52 per cent. Aditya Smelter Phase 2 remains on track to begin metal production in FY2028.

In the downstream aluminium business, sales increased 6 per cent to 119,000 tonnes. Revenue rose 45 per cent to INR 55.11 billion (USD 587 million), while quarterly EBITDA reached a record INR 3.3 billion (USD 35 million), up 26 per cent year on year. The company attributed the increase to a favourable product mix, premiumisation and higher shipments.

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Hindalco said its aluminium battery foil and flat-rolled products (FRP) plants at Aditya, along with the coated air-conditioning fins plant at Taloja, were scaling up towards optimal production levels.

At Novelis, quarterly revenue increased 25 per cent to USD 5.94 billion, supported by higher average aluminium prices. Adjusted EBITDA rose 20 per cent to USD 508 million, while EBITDA per tonne increased 23 per cent to USD 553. Product shipments declined 2 per cent to 919,000 tonnes from 941,000 tonnes a year earlier.

Production at Novelis’ Oswego hot mill returned to normal levels, with output aligned with demand. Commissioning work at the Bay Minette plant is progressing, with first hot mill coil production targeted for the fourth quarter of FY2027 and commercial shipments expected from the first quarter of FY2028.

Pai further said, “Looking ahead, the commissioning and ramp-up of Bay Minette, copper recycling, aluminium battery foil, Aditya FRP and Inner Grooved Tubes will further accelerate the share of our non-LME-linked businesses.”

Renewable energy and sustainability initiatives

During the quarter, Hindalco operationalised a 65 MW round-the-clock renewable energy project at Aditya Aluminium. It also commissioned an additional 173 MW of renewable energy capacity, taking its total installed capacity to 643 MW.

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The company reported a copper slag utilisation rate of 110 per cent in Q2, including the use of accumulated stock. Water recycling rates improved year on year to 33 per cent in the aluminium business and 24 per cent in copper.

Hindalco planted approximately 540,000 saplings in the first half of FY2027, taking cumulative plantations across its operations to 6.8 million trees. It also began a 123-hectare habitat restoration project at Belagavi under its 'No Net Loss' programme.

As of September 30, 2026, Hindalco’s consolidated net debt-to-EBITDA ratio stood at 1.80 times, compared with 1.23 times a year earlier.