NALCO stock jumps 16% after strong Q2 results and upgraded targets

NALCO’s strong September quarter results have sparked a sharp rebound in its stock, with the shares adding another 2% to hit a fresh high of INR 271.90 and extending the four-day rally to 16 per cent. Investors have been piling in since the company’s Q2 numbers beat expectations and several brokerages responded by lifting their target prices.

The state-run aluminium producer delivered a solid set of results for the quarter ended September. Consolidated revenue came in at INR 42.92 billion (USD 484 million), up 7 per cent from a year earlier and 13 per cent from the previous quarter, helped mainly by higher alumina sales. EBITDA improved to INR 19.26 billion (USD 214 million), a 24 per cent rise year-on-year, as the company kept a tight lid on raw material, power and employee costs.

Net profit jumped 37 per cent to INR 14.30 billion (USD 157.8 million), supported by better other income and lower depreciation and amortisation. Alongside the results, the board announced a first interim dividend of INR 4 per share for FY26.

Read the full Q2 report: NALCO delivers solid Q2 growth, sparking 13% share surge

Alumina averaged USD 360 a tonne in Q2 FY26, while current spot prices are hovering in the USD 320–USD 340 range. Management expects prices to remain around these levels in the second half of the year. The recent dip has been attributed to fresh refinery capacities in Indonesia and China as well as some smelter curbs that have boosted alumina supply.

The recent rally also marks a remarkable turnaround from the stock’s April low of INR 137.75. After a long five-month slide, NALCO shares began recovering in May, rising 15 per cent that month alone. The momentum continued through the following months, helped by stronger global commodity prices, easing geopolitical tensions and a weaker US dollar. So far this month, the stock has added another 15 per cent, bringing its total recovery from the April bottom to more than 96 per cent.

If the current trend holds, NALCO could be headed for its third year of gains—something investors were not expecting just a few months ago.

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