National Aluminum Company Ltd ( NSE: NATIONALUM), the Navratna PSU under the Ministry of Mines, delivered a resilient third-quarter performance for Fiscal Year 2026, posting its highest-ever quarterly net profit. Despite the operational strength, the stock faced a sharp intraday correction, highlighting a “sell-on-news” sentiment as the broader metal sector retreated from recent highs.
The Financial Scorecard: Q3 FY26
NALCO’s performance during the October–December 2025 period showed stability in year-on-year (YoY) metrics and strong sequential (QoQ) momentum.
| Metric | Q3 FY26 (Current) | Q3 FY25 (YoY) | Change (YoY) | QoQ Change |
| Revenue from Operations | ₹4,731 Crore | ₹4,662 Crore | +1.5% | +10.2% |
| Net Profit (PAT) | ₹1,601 Crore | ₹1,583 Crore | +1.1% | +11.6% |
| EBITDA Margin | 46.1% | 50.0% | -390 bps | +120 bps |
| EPS (Basic) | ₹8.72 | ₹8.62 | +1.2% | +11.7% |
Segment Performance & Operational Excellence
The company’s “integrated model” from bauxite mining to captive power generation—continues to be its primary competitive advantage.
Aluminum Segment: Revenue surged by 33% YoY to ₹3,461.50 crore, driven by firm global aluminum prices and steady domestic demand.
Chemicals Segment: Revenue stood at ₹1,656.78 crore. While down YoY due to lower alumina realizations compared to the previous year’s high base, the segment maintained healthy profitability.
Record Production: During the 9M FY26 period, NALCO achieved record production across the board: 56.60 lakh tonnes of bauxite and 17.27 lakh tonnes of alumina hydrate.
Management Commentary & Investor Call Highlights
During the earnings call, Chairman-cum-Managing Director Shri Brijendra Pratap Singh and the board focused on long-term sustainability and the company’s capital allocation strategy.
Bauxite Independence: The Pottangi mines are expected to start operations by Q4 FY26, which will further insulate the company from raw material price shocks.
Energy Shift: To combat the Carbon Border Adjustment Mechanism (CBAM), NALCO is adding 500 MW of green power to its mix.
Dividend Bonanza: The Board declared a second interim dividend of ₹4.50 per share (90% of face value).
Total 9M Payout: Combined with the first interim dividend of ₹4.00, NALCO has returned ₹8.50 per share to investors this fiscal.
Record Date: February 6, 2026.
The ₹30,000 Crore Expansion
Management reiterated its commitment to a massive capex plan aimed at achieving “Maharatna” status by 2030. This includes doubling smelting capacity and securing long-term power through green energy initiatives.
Auditor Note: The “Sub-Judice” Revenue
A key analytical point raised was the non-recognition of revenue from two wind power plants in Rajasthan. This is due to a pending Power Purchase Agreement (PPA) renewal currently under litigation in the Rajasthan High Court. Resolving this could provide a minor boost to future “Other Income.”
Market Analysis: Why did the stock tumble 10%?
Despite “record” profits, NALCO’s stock ended the day down 10.5% at ₹384.
Sector Sell-off: The entire Nifty Metal index witnessed a 4% pullback today. Competitors like Vedanta also saw sharp declines despite good results.
Margin Contraction: While sequential margins improved, the YoY contraction of nearly 400 basis points in EBITDA margins signaled that high input costs, particularly coal and caustic soda are still biting into the record revenue.
Key Takeaway & Conclusion
NALCO remains a fundamental powerhouse with zero debt and an attractive dividend yield of 2.5%. For long-term investors, the current dip represents a valuation correction rather than a structural failure. The company is effectively using its cash flows to fund a massive expansion that will likely trigger a re-rating once the new capacities come online in FY27.