On Tuesday, August 12, Hindalco Industries Limited announced the first quarter results of the financial year 2025-2026, ending June 30. In the report, the company highlighted that both the upstream and the downstream business (India) had recorded stellar performance.
Satish Pai, Managing Director, Hindalco Industries, said, "After the record profitability of FY25, Hindalco sustained its growth momentum with a strong first quarter performance, driven by operational efficiencies, cost control, and an enhanced product mix. Aluminium India Upstream business continued to outperform with industry-best EBITDA margins of 44 per cent. Aluminium India Downstream had a stellar quarter and reported its strongest quarterly performance with 2x EBITDA growth."
The company struck an upbeat note on rising demand for both aluminium and copper, reassuring investors that the recent US tariff will have no bearing on its Indian operations. Backed by higher sales volumes, Hindalco posted a robust 30 per cent year-on-year jump in consolidated net profit, climbing from INR 3,074 crore to INR 4,004 crore even as softer aluminium prices posed a challenge.
In Q1 FY26, consolidated EBITDA rose 8.5 per cent to INR 8,673 crore, compared with INR 7,992 crore in the same quarter last year. Revenue from operations also saw a solid 13 per cent growth, reaching INR 64,232 crore against INR 57,013 crore in Q1 FY25, underscoring the company's ability to deliver strong top-line momentum in a dynamic market.
Positive momentum on the share market
Hindalco Industries lit up the markets on Wednesday, with its share price soaring over 5 per cent, securing a spot among the top gainers on the Nifty 50. The rally was fuelled by stellar Q1 FY26 results and a spike in trading volumes. The company delivered a strong show, climbing 3.58 per cent and outperforming its sector by 0.45 per cent. The rally reflects the bullish sentiment in the Aluminium & Aluminium Products segment, which itself advanced 3.13 per cent.
During the session, the stock touched an intraday high of INR 691.9, up 3.74 per cent, and continues to trade well above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained upward trajectory.
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Performance-wise, Hindalco remains a standout, posting a 15.76 per cent year-to-date gain and an exceptional 666.23 per cent surge over the past decade, far surpassing the broader Sensex returns over the same period.
Aluminium upstream segment
The Aluminium upstream business posted an EBITDA of INR 4,080 crore, marking a 17 per cent YoY increase from INR 3,493 crore in Q1 FY25. This was driven by lower input costs and higher realisations, with margins improving to 44 per cent from 40 per cent a year earlier. EBITDA per tonne rose 15 per cent YoY to USD 1,467, underscoring the segment's global cost competitiveness; Hindalco continues to be in the first quartile of the global cost curve.
Shipments in the upstream segment stood at 325 Kt, slightly down by 1 per cent YoY from 329 Kt, reflecting stable production in the face of market fluctuations. Revenue rose 6 per cent Y-o-Y to ₹9,331 crore, supported by improved pricing despite a softer global aluminium market. The upstream business continues to benefit from an efficient raw material supply chain, strong smelting operations, and cost discipline, reinforcing Hindalco's leadership in the sector.
Aluminium downstream segment report
The aluminium downstream business delivered its best-ever quarterly performance, with EBITDA surging 108 per cent Y-o-Y to INR 229 crore from INR 110 crore in Q1 FY25. A favourable product mix, higher value-added product sales, and operational efficiencies pushed this growth. EBITDA per tonne nearly doubled to USD 264, a 92 per cent Y-o-Y jump, signalling strong realisations from flat rolled products, foils, and extrusions.
Shipments in the downstream segment reached 101 Kt, up 6 per cent Y-o-Y from 96 Kt, on the back of steady demand in building & construction, consumer durables, and packaging segments. Revenue for the segment rose 17 per cent Y-o-Y to INR 3,353 crore, with both domestic and export markets contributing to growth.
Bullish on India business
Hindalco's India business reported a 9 per cent year-on-year (Y-o-Y) increase in revenue to INR 24,905 crore for the quarter ended June 30, while profit after tax surged 45 per cent to INR 2,847 crore. According to the company's investor presentation, the India FRP market in Q1 FY26 is estimated to have grown by around 5 per cent, driven by demand from consumer durables as well as the building and construction sectors.
"We made significant progress in our downstream growth projects: the 170 KT Aditya FRP project, Aluminium AC fins, and the Copper IGT facility are under commissioning. Looking ahead, our integrated business model, strategic investments, and cost discipline position us well to deliver sustained growth," added Satish Pai.
Also Read: Hindalco on a roll: From record breaking FY2025 results to acquiring 100% equity in EMMRL
Conclusion
When combined, the upstream and downstream aluminium operations contributed INR 4,241 crore in total aluminium EBITDA in Q1 FY26, maintaining a significant share of Hindalco's overall earnings. This strong aluminium performance offset headwinds in other areas, such as the 16 per cent YoY decline in copper EBITDA and the 17 per cent Y-o-Y drop in Novelis EBITDA due to higher scrap costs and tariff impacts.
With record downstream performance, industry-leading upstream margins, and a robust expansion pipeline, including the Aditya FRP project already in commissioning, Hindalco is well-positioned to capture demand growth in both primary aluminium and high-value downstream products. The company's focus on cost efficiency, capacity expansion, and sustainability, with 98 per cent waste recycling and a target of 300 MW renewable energy capacities by Q3 FY26, reinforces its competitive advantage in the global aluminium market.
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