Hindalco Industries Ltd.Record Aluminium Profit, Novelis Recovers

Hindalco reported a strong Q1 FY27, with consolidated EBITDA up 58% year on year to ₹13,481 Cr and profit after tax up 75% to ₹7,013 Cr.

The India business delivered EBITDA of ₹8,606 Cr, led by record upstream aluminium EBITDA of ₹7,390 Cr, an all-time-high US$2,331 per ton and a 55% margin. Copper posted a record ₹918 Cr despite a planned shutdown, and downstream aluminium EBITDA rose 30% to ₹298 Cr. Novelis grew adjusted EBITDA 24% to US$516 million after restarting its Oswego hot mill in June, though management warned that tariffs of about US$70 million will persist for a couple more quarters.

Consolidated net debt to EBITDA was 1.95x, below the 2x threshold, and Novelis expects its own leverage to fall below 4x. Management expects upstream costs to rise another 5-6% in Q2 and is introducing a 0.25% brand royalty, capped at ₹225 Cr, payable by both Hindalco and Novelis. The first 180 pots of the Aditya smelter are due in December 2027.