Shares of Hindalco Industries Limited (NSE: HINDALCO) were trading around ₹960–970, down modestly in early trade, after the metals producer reported a sharp drop in quarterly profit that fell short of investor expectations. The stock was trading slightly lower in early deals, after receding from a 52-week high near ₹1,030 and holding well above its 52-week low around ₹546, reflecting a strong uptrend over the past year.
Hindalco, India’s largest aluminum and copper producer and a key constituent of the broader commodity complex, posted a consolidated net profit of ₹2,049 crore for the quarter ended December 31, a 45% year-on-year decline from ₹3,735 crore in the same quarter a year earlier. The company attributed much of the fall to exceptional losses linked to operational disruptions at its U.S. subsidiary’s plant.
Revenue growth outpaced profit decline, with consolidated revenue from operations rising about 14% to ₹66,521 crore versus the year-ago quarter. Earnings before interest, tax, depreciation, and amortization (EBITDA) also posted a modest year-on-year increase of around 5% to roughly ₹8,543 crore, signaling resilient underlying operations amid broader market pressures.
On a sequential basis, revenue was broadly flat, up only marginally from ₹66,058 crore in the prior quarter, while PAT before exceptional items rose roughly 8% year-on-year, pointing to ongoing strength in core business segments.
Segment Detail:
- India business continued its robust performance, posting an all-time high PAT of ₹3,581 crore, up about 24% year-on-year, driven by strong domestic metal demand and cost efficiencies.
- Aluminum upstream EBITDA grew in double digits, while downstream EBITDA expanded even more sharply on higher volumes and improved product mix.
- Copper revenues climbed strongly on higher volumes and pricing, though certain continuous cast rod sales were weaker amid inventory amid a softer domestic market.
The net debt to EBITDA ratio moved higher compared with a year ago, reflecting both the earnings impact from the operational disruption and ongoing capital deployment.
Full-year context:
For the nine months to December 31, Hindalco recorded revenue near ₹196,800 crore and EBITDA of about ₹26,900 crore, each up from prior year figures, underscoring continued top-line expansion even as margin pressures persist.
Investors have been monitoring Hindalco’s U.S. unit’s operations closely. The Oswego plant, part of its Novelis subsidiary, was disrupted by fires in 2025, leading to inventory and repair losses that inflated costs in the quarter under review. The company has indicated a phased restart timeline in subsequent quarters, with the Bay Minette expansion remaining on track, supporting medium-term growth capacity.
Macro and Sector Notes:
Hindalco’s results come amid broader headwinds in the metals and industrial sector, with global commodity prices and margins under pressure from elevated energy costs, tariff uncertainties, and inflation in input costs. Metal producers, particularly those with significant global footprints like Hindalco, have faced mixed demand signals from industrial and construction sectors, influencing stocks across the sector. These sales backdrops also parallel broad macro pressures seen in other cyclical stocks.
Outlook:
Management cited sustained demand in India and progress on strategic capacity expansions in aluminum, copper, and value-added products. However, market participants will be watching execution on the plant restarts and global cost structures closely ahead of Hindalco’s next earnings update.