NALCO to reach ₹190-200 billion revenue as ₹250 billion FY31 expansion target progresses

National Aluminium Company Limited (NALCO) expects revenue to reach INR 190-200 billion (USD 2.29–2.41 billion) in the current year, supported by higher alumina production and stronger aluminium prices, while an INR 250-billion (USD 3.01 billion) expansion programme is set to reshape its upstream, smelting and power capacities by FY31.

The state-owned aluminium producer expects revenue to increase from approximately INR 178 billion (USD 2.14 billion) last year as its new refinery capacity lifts alumina production and higher aluminium prices support realisations. NALCO Chairman and Managing Director Brijendra Prasad Singh attributed the revenue outlook to these two factors.

INR 250 billion capex to expand aluminium value chain

NALCO is simultaneously advancing a INR 250-crore (USD 3.01 billion) capital expenditure program through FY31. The expansion will cover its alumina refinery, bauxite mining, aluminium smelting and captive power operations.

The company plans to increase alumina refinery capacity from 2.1 million tonnes per annum (mtpa) to 3.1 mtpa, while bauxite mining capacity is targeted to rise from 7.5 mtpa to 11.5 mtpa.

The expansion also includes a significant increase in aluminium smelting capacity. NALCO plans to more than double its smelting capacity from 0.46 mtpa to 1 mtpa by FY31.

At the same time, captive power generation capacity is expected to increase from 1,200 MW to 2,280 MW, strengthening the company's integrated operating model and supporting its expanded aluminium production base.

“Our capital expenditure plan is INR 25,000 crore by FY31. We are looking to expand our refinery capacity from 2.1 to 3.1 mtpa along with an increase in bauxite mining from 7.5 mtpa to 11.5 mtpa. By FY31, we are also looking to expand our smelter capacity from 0.46 mtpa to 1 mtpa and captive power generation capacity from 1200 MW to 2280 MW,” Singh said.

Explore the production, demand and consumption forecasts of bauxite and alumina in our report: "Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook"

NALCO, NLC India advance 1,080 MW power project

The company's power strategy has also gained momentum through its partnership with NLC India.

The two state-owned companies have approved a 50:50 joint venture, NLC NALCO Power Limited, to develop a 1,080 MW thermal captive power plant at Angul, Odisha. The proposed facility will comprise four 270 MW units and is intended to supply power to NALCO's aluminium smelter expansion.

The joint venture has received clearance from the Department of Investment and Public Asset Management (DIPAM), with the approval formally conveyed through a Ministry of Coal letter dated September 8, 2026.

The project is linked directly to NALCO's 0.5 mtpa aluminium smelter expansion project at Angul, providing dedicated captive power for the additional smelting capacity. The two companies will hold equal equity stakes in the venture.

The latest development adds another layer to NALCO's broader capacity expansion, as the company seeks to increase aluminium production while strengthening its control over key inputs, including alumina, bauxite and power.

Geopolitics adds another variable to aluminium prices

NALCO's higher revenue expectation also comes against a backdrop of heightened geopolitical uncertainty, which has contributed to higher aluminium prices.

The company has linked the expected improvement in revenue partly to the rise in aluminium prices amid the geopolitical situation. Meanwhile, the expansion programme is designed to increase production capacity over the longer term rather than rely solely on favourable market pricing.

The wider Indian aluminium industry is also facing a policy push to increase domestic capacity. The expansion plans come as the Centre targets an increase in indigenous aluminium capacity to 37 mtpa by FY47 and aims to capture a 10 per cent share of global aluminium trade.

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