Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
National Aluminium Co.Ltd. (NSE: NATIONALUM) Q4 2026 Earnings Call dated Apr. 30, 2026
Corporate Participants:
Bharat Sahu — Company Secretary
Brijendra Pratap Singh — Chairman cum Managing Director
Analysts:
Shweta Dixit — Analyst
Pinakin Parekh — Analyst
Aditya Velkar — Analyst
Pallav Agarwal — Analyst
Sumangal Nevatia — Analyst
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to the Q4, FY26 and FY26 earnings call of National Aluminium Co. Ltd. Nalco conference call hosted by Systematics Group. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call please signal an operator by pressing Star then SIDO on your touchstone phone. I now hand the conference over to Ms. Shweta Dixwith from Systematics Group.
Thank you. And over to you Mr. Dixrit.
Shweta Dixit — Analyst
Thank you. Good evening everyone. On behalf of Systematics we welcome you to the Q4, FY26 and FY26 earnings conference call of National Aluminium Co. Ltd. I would like to thank the management for giving us the opportunity to host this call. I now hand over to Mr. Bharat Sahu, company Secretary Nalco to discuss the company’s financial and operational performance. Over to you sir.
Bharat Sahu — Company Secretary
Thank you. Shweta ma’. Am. Namaskar. Good evening. Greetings from National Aluminum Co. Ltd. On behalf of NALCO Collective and specially from Nalco Board let me welcome all esteemed investors analysts found houses to this earning call hosted by Systematics Group. Today is a historic day for Lalco. The board of directors have approved the financial statements for the financial year 2526 registering the best ever performance. In every front we have our CMD Sri Vijayendra Pradav Singh along with our other functional directors Director Production Sri Pankaj Kumar Sharma, Director PNT Sri Jagdish Arora, Director HR Dr.
Tapas Patnaik, Director Finance Sri Avayakumar Beoria
Pinakin Parekh — Analyst
And
Bharat Sahu — Company Secretary
Director Commercial Sri Amir Kumar Singh. In this conference call and presentation on this Q4 and FY26 is already uploaded with the stock exchanges as well as in the company’s website and I hope Systematics group must have also circulated it to all our esteemed investors. And now I request our CMD sir to kindly highlight the results and also the outlook of the company. Over to you sir.
Brijendra Pratap Singh — Chairman cum Managing Director
Good evening. Good evening to everyone connected over vc all our directors are present here in this our boardroom and our company Secretary B. Everyone connected through VC along with the systematic groups our today we have declared our results and with a very robust performance of the company I would like to deliberate on the highlights of the. I would like to deliberate on the highlights achievements of the organization. This year we have done best ever physical performance in all the areas Boxite excavation, Alumina hydrate production, calcined Alumina production, metal production, net power generation, wind power generation and all the areas the growth is there compared to 25.
The actual production of 2425. Bauxite production around 6% growth. Hydrate and calcined alumina production around 11.5% growth. Cast metal production around 2.61% growth. Coal production from our Utkal coal block around 41.84% growth. Power generation from our power units 4.7% growth. Wind power around 9.25% growth. Along with along with that our sales performance also have been robust. We have done best ever sales both in terms of alumina and metal. Aluminum Metal alumina sales has grown by around 30.74% and metal sales that is aluminum sales has grown by around 2.8%.
So all the physical performances in all areas and sales performance has been ever best backed by this performance. Our financial also we have done best ever financial performance this year. Last year we had best ever in 2425 and we have surpassed those figures. Revenue from operation in the year 2425 was 16,788 crores which has gone up to around 17,843 crores. A growth of around 6.28%. EBITDA has grown from 7,922 crore to 8,613 crores. Around 8.72% growth. Profit before tax from 7,135 crores to 7,767 crores.
Around 8.86% growth PAT from 5,325 to 5,816 around 9.22%. So all these financials are also ever best and all this achievement. What we have done the two major reasons of this equipment were dedicated and hard work of each and every employees, support of our stakeholders, support of our ministries and government and our physical performance was best ever. Physical performance we have improved not only on the volume, we have improved on the technical economy figures also like caustic soda consumption, CP co consumption, furnace oil consumption, all these areas also a lot of savings.
We have done so with increase in volumes, increase in our efficiencies. We have increased our profitability in spite of reduction in the alumina prices. Alumina prices if we see year on year around more than $200 it has gone down. In the year 2425 average alumina relation was around 580$ which has come down to around $370 this year. Of course in metal side the average production has increased from around 2550 to around 2700 US dollars. So major highlight is that we have been able to tap our potential reach to the fullest capacity of our potential with the good improvement in our techno economic figures.
Thank you.
Questions and Answers:
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and one on the touchtone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aditya Velikar from Access Securities. Please go ahead.
Bharat Sahu
Yeah, thanks for the opportunity and congrats for the great set of numbers. So just wanted to understand on alumina front if you can throw any guidance on FY27 production and sales volume both on aluminum and aluminum
Brijendra Pratap Singh
FY27. If you see our target is our 5th stream refinery is coming. So we are planning to add because that will commissioning will start in June and maybe take three, four months to reach to the production level. So this year we are planning, optimistic planning we have done of 2 lakh tons so around 25 lakh tons of alumina production and sales we are planning that is around 2 lakhs more than the previous year and if it will further increase as far as the commissioning process goes, as far as the metal production is concerned.
Metal production again we have targeted more than this year, slightly more because we have already reached to the upper limit. Our capacity is 4.6 lakhs. Last year we have done around 4.5 71 lakhs of tons of metal production. This year we have planned around 4.73 lakhs tons of metal production. So both areas in alumina and metal we have looked for the growth.
Aditya Velkar
What is our exposure to Middle east in terms of alumina exports? Is there any impact of on the sales volume? Next year
Brijendra Pratap Singh
Our alumni export to the Middle east of course that was going earlier in the previous years lot of around 40 50% of our export was going to Middle east which has got affected. But now from Indonesia and other places also orders are there. Of course that has resulted into the reduction in the spot prices. The spot prices have gone down to as low as around $310 to $305. That is the effect of the war. So once this smelters of the Middle east. The Middle east the production curtailment is there till they reach to the fullest capacity.
There Will be effect on the alumina pricing and the spot prices.
Aditya Velkar
And in terms of volumes any impact on sales volume because of this disruption there
Brijendra Pratap Singh
Sales volume till now? No, our volumes. Whatever spot tender we are doing, we are getting the order. In fact in our last spot tender we got the order of around 336 orders we are getting. We are trying to increase our presence in the domestic market also like last two, around 25, 2425. Our domestic sales was 40,000 tons this year. 2526. We have done around 1 lakh 40,000. We have increased the volumes of in domestic sales by around 1 lakh. This year again we are targeting to further increase go to around 2.5 to 3 lakhs.
I think something like that. So we are targeting domestic market to further increase the volumes. And we are trying to have some long term relationship, long term engagement with smelter manufacturer across the globe. So that we have the comfortability of selling aluminum to the smelters.
Aditya Velkar
Okay, got it sir. Thank you. I’ll get back to the place.
Operator
Thank you. The next question is from the line of Manav Gogia from yes, securities limited. Please go ahead.
Pinakin Parekh
Hello. Yes, a very good evening and thank you for the opportunity. First of all, congratulations for the strong year that you’ve had. So one question. Follow up from the previous participant. Could you give me the average aluminum realization price for the quarter and how is it shaping up in Q1
Brijendra Pratap Singh
Quarter means which quarter you are asking
Pinakin Parekh
For Q4. What was the average aluminum realizations and how was Q1? 25.
Brijendra Pratap Singh
Q4 25 26. Yes, Q4 25 26. Average realization was somewhere around 3,000 alumina. Alumina you are talking or aluminum
Pinakin Parekh
Alumina. The chemical alumina.
Aditya Velkar
Yes,
Brijendra Pratap Singh
Alumina. It is $348. 348 was there in Q4.
Pinakin Parekh
Okay. And how is Q1 looking?
Brijendra Pratap Singh
Even it was 416. No further go down. It is around 320 average we are getting now.
Pinakin Parekh
Okay. Okay, got it. Okay sir, so just one question. Are we. You know because aluminum prices are quite strong. Are we doing any putting any hedges in place or it’s going to be directly linked to lme. How we have been doing till now for aluminum
Brijendra Pratap Singh
I think we are not doing. It’s directly linked to LME since aluminum is on the rise. So that’s why we don’t require to do any kind of hedging.
Pinakin Parekh
Okay, got it. And so for volumes for alumina you just stated that you know we are going to be doing incremental 2 lakh tonnes from the new refinery. Earlier we were targeting of 5, you know, 50% utilization. Then we had got it down to 30%. Now we are sort of at a 20 to 25% utilization. So. So I mean, are we expecting some delays or is it, how should we look at it? In
Brijendra Pratap Singh
Fact, not delays. We were expecting by June. Yeah, some, some delays will be there because we were expecting that by June we will be completing the total production commissioning process. But in June we are starting the commissioning process. It may take 2, 3 months to complete it. 2 lakh is a very optimistic figure which we are targeting. Maybe it can further go up if the commissioning process is completed early.
Pinakin Parekh
Oh, okay, okay. And so my second question would be, you know, where, where are we in the process for the new aluminium smelter and how should we take a look at the CAPEX number going ahead for the next two, three years? Now
Brijendra Pratap Singh
The new aluminium smelter already we have placed the order for mixing DPR for both smelter and our power plant. The preparation of DPR is under progress Technology licenser. Already we are appointing. Our target is by this, this year, maybe September. October will be August, September we will be able to complete the dpr, get the board approval and start the tendering process for procurement which will take six to seven months. Means next month, next year, April, May we can complete that ordering and start the actual groundwork.
And it will take around three and a half years from there. Our target is by the 20th of December 2030 or maybe early 2031 to complete the overall commissioning.
Pinakin Parekh
Oh, okay, got it. And how does the CapEx number look for 27 and 28. And where can we see the CapEx, you know, peaking out
Brijendra Pratap Singh
CapEx like this year the CapEx will not come but 27, 28, the CapEx will start coming once the ordering is done. So capex will further capex for phasing. How much have we have done? 27, 28 we may increase, will be around 4000. This year we are targeting around 1800-2000, that is 26, 27, 27, 28 it will go to 4000,
Pallav Agarwal
Somewhere
Brijendra Pratap Singh
Around 4000. And similar kind of capex it will further increase, further increase because our total investment will be around both if you see power plant and this will be around somewhere around 30,000. So that will be phased out in around three to four years from next year onwards that is 27, 28 onwards. So maybe first year will be around four to 5,000. Next year will further go to around eight to 10,000 and 2829
Pinakin Parekh
And 2930 will speak
Brijendra Pratap Singh
Will peak out to around eight to eight to 10,000.
Pinakin Parekh
Oh okay, got it. Thank you so much sir. All the very best. I’ll turn back to you. Thank you.
Operator
Thank you. The next question is from the line of Tanakan from hsbc. Please go ahead.
Pinakin Parekh
Thank you very much sir. First of all, can you give us the alumina and aluminum cost of production in the fourth quarter and what would it be today in 1Q given the cost inflation that we have seen
Pallav Agarwal
If we see the cost of production of our alumina and aluminium alumina our cost varies from 20,000 to 22,000 in between. Okay. And if you’re talking about aluminum it is 155 to 100 money 1 lakhs 55 to 1 lakh 60. That is very. But the first quarter the cost will not increase much though there is some increase in the input cost. But since our management employees costs are getting down because of the high paid employees are getting repaired and we are recruiting a new one. So whatever extra cost we are including in the input cost that will be set up by our fixed cost reduction in fixed cost increase cost power and fuel.
So there will be much hike in the cost. It will be varied in that range only within 1 lakh 60 thousand.
Pinakin Parekh
So sir, that’s very good to hear. But do you expect that trend to continue in the second quarter as well? Because we are seeing caustic and fuel oil and carbon prices all rise very sharply.
Pallav Agarwal
You are expecting that what is suppose there is increasing the caustic and city peaks. But we are going to increase coal supplied from our captive mines. Our captain mines would call D and E. That will get some comfort. Whatever cost will be incurring cost in the input cost outside FCA that will be to great extent will be compensated the reduction of the power cost coal cost from our captain mines. Because in the next year we are going to increase production by 8 lakh more so that company will be getting.
Pinakin Parekh
Got it. So my second question is that the Japan aluminium premiums have risen very sharply from just around hundred to nearly $300 per ton for Nalco’s aluminum sales. What were the premiums that the company realized in fourth quarter and what do you think will be realized now?
Pallav Agarwal
We have a pricing policy we don’t changes frequently the premium part we have a mechanism of pricing calculation and we have fixed the premium I think six, seven months back that pattern we are following so it is linked to the lme. So we don’t change our premium frequently because that is a transparency policy we are following. So that gives very conflicting to the to all of our stakeholders. So we don’t need it to be dapan premium regularly. It is fixed. I think last year it was fixed and that is continuing.
We don’t say. Do
Pinakin Parekh
You expect to revise it anytime soon sir, given that the premiums have risen very sharply across Asia.
Brijendra Pratap Singh
Maybe some within a month or two we’ll be going for export tender and whatever premium will be getting there System is key. We go for export tender in within every six months, something like that. And whatever premium we are getting that we adopt for next six months we will be going for export tender and whatever premium we get then we will include in our.
Pinakin Parekh
Got it. Got it. Thank you very much. This is very very helpful.
Operator
Thank you. The next question is from the line of Pallavagarwal from antique stock broking. Please go ahead.
Aditya Velkar
Yeah, good evening sir. So just a question. You mentioned about you know the employee costs coming down but in this particular quarter we’ve seen you know almost a 13% increase YOY and a 26% sequential increase compared to third quarter. So is there any one off or any RTY provisions that were there in this quarter?
Brijendra Pratap Singh
They’re dealing quarter to quarter.
Aditya Velkar
Yeah. Employee cost
Brijendra Pratap Singh
Overall year to year it has gone down 18%
Pallav Agarwal
To 16%
Brijendra Pratap Singh
Year to year. If you see it has gone down compared to 2425
Pallav Agarwal
Last financial
Brijendra Pratap Singh
Year it has gone down by around 65 crores employee cost because we have retirement of around 351 people and we have inducted around 358. But whatever retirement was in the higher pay scale and the induction is in the lower.
Pallav Agarwal
Some of the provision is being made at the end of the year, accurate valuation, everything. And if you see the overall 2425 and 2526 there is a reduction of 2%. Our employees cost composition of total expenditure it was 18% and this year it is 16%.
Aditya Velkar
Sure. And we expect this to continue right in FY27 also we don’t see a material increase. I think
Pallav Agarwal
It will continue
Brijendra Pratap Singh
Also further superannuation is by around 250 numbers
Pallav Agarwal
And
Brijendra Pratap Singh
Our recruitment will be also similar kind of thing. And superannuating stuff is always on the higher pay scale and the people joining are on the lower pay scale. So similar kind of savings will be there.
Aditya Velkar
Sure sir. Also on the other expenses, you know again maybe because of the fourth quarter, you know there’s been a significant increase on a yoy basis at about 850 crores. So again is it some year end provision which will probably not other expenses? It’s about 850 crores for this quarter
Pallav Agarwal
Other expenditure. Actually we have made some extra because of some statutory reason our Redmond fund one. So there is a strategy provision that after you come and utilize that Redmont pond, you have to give a complete cover of that which is green and everything that we have made a provision of around 40 crores for that. Second additional provision we have made for our prior situation because the nearby area where we are used to dump our five flyers that has been adjusted and we have to transport further distance.
So we have made a provision of transportation cost. So that has I think we have kept 54 crore additional. These are the expenses we have taken in the fourth quarter. That’s why there is some additional impact.
Aditya Velkar
Okay, so almost nine. Only the provision, not the
Pallav Agarwal
Gas expenditure. That is only provision.
Aditya Velkar
Sure sir, also so and what was the capex that he actually incurred in FY26?
Pallav Agarwal
FY26? Around 2000. 2000 crores?
Aditya Velkar
Sure sir. Our
Pallav Agarwal
Target was 1700 but we have exceeded like almost 400 more
Aditya Velkar
Sir. Coming back to the alumina pricing scenario, so I think you earlier mentioned that Indonesia the smelters were delayed but the alumina refineries had come on steam. So there was a pressure on pricing. So you know, by when do you expect this to probably normalize in the smelting capacity, you know to start operation in Indonesia?
Brijendra Pratap Singh
Indonesia smelting capacity is going to start this financial year end some of the smelting capacities. But in spite of that their refineries capacities are on the higher side. There will be an excess of aluminum in the market every time this year or maybe next year. And with this some of the smelters in the middle is going down and their revival itself will take around seven to eight months or maybe one year. So this year, this financial year there will be an excess of aluminium in the market and the pressure on the pricing will be there.
Aditya Velkar
I think in the Middle east there was some alumina refinery capacity also. So is there any impact on that or that is operating at normal levels? Right now
Brijendra Pratap Singh
The refining capacity is less than their smelting. They were importing the alumina. So refinery as of now we don’t have any update on the refining capacities, whether it has any effect on that. But of course smelters, three smelters, Fantam in Quar and Ega Dubal and one more smelter has got affected and they reduce the production by around 50% so that’s why their overall alumina consumption has gone down.
Aditya Velkar
Okay, sure. Yeah. Thank you so much.
Operator
Thank you. The next question is from the line of N. Modi, an individual investor. Please go ahead.
Aditya Velkar
Yes, sir. Thank you sir. What percentage of this coal and K soda we are able to producer captive
Brijendra Pratap Singh
What percentage of coal?
Aditya Velkar
Yes,
Brijendra Pratap Singh
Overall coal requirement is around 7.2 million ton out of that last year we have produced our own Utkal mines have produced around 4 million ton this year we are targeting 4.8 million ton that is the our renounced coal Production out of 7.2 4.8 this year will be producing and as far as caustic soda is concerned around 50% of our total requirement is produced in our JV that is in general.
Aditya Velkar
Yes and balance we are sorry from outside
Brijendra Pratap Singh
Ah rest caustic soda we are procuring from outside and coal may be around 2.7 2.5 to 2.7 million tons we source from MCL through our linkage route fuel supply agreement route.
Sumangal Nevatia
One more thing sir. This price of caustic soda has gone up now during last two, three months.
Brijendra Pratap Singh
Yes,
Pallav Agarwal
The cost of caustic soda has gone up. It has gone up by how much caustic soda if you last year average it was a beginning of the year it was around 30,000 and 2526 average cost is around 42 and first quarter we are expecting 45. From 42 to 45,000 it has gone in last six months.
Sumangal Nevatia
Yes. Right. Okay, thank you.
Pallav Agarwal
Thank
Brijendra Pratap Singh
You.
Operator
Thank you. The next question is from the line of Vikasingh so my CSA securities Please go ahead.
Pinakin Parekh
Good evening and thank you for the opportunity. So my first question to your previous remarks that you said coal would be 4.8 million tons from the capital sources next year so have we received the EC players? Because as far as we can are concerned I think we had four
Brijendra Pratap Singh
That is all almost under process and we are very much sure that next coming three, four months we will get it.
Pinakin Parekh
The second question pertains to other rare earth lithium projects which we were able to which we are about to take off. So anything happened in Kabil or any other segment, any topics
Aditya Velkar
There? If you could give us some idea.
Brijendra Pratap Singh
We are not getting you. We are not clearly audible. Just if you can repeat your question
Aditya Velkar
As a question myself sir. So regarding there was a lot of news of
Pinakin Parekh
Us about this Exploring the rare earth and critical mineral gases as well Apart from the Kabil Argentina mine have we scouted or zeroed down on anything else
Brijendra Pratap Singh
From Kabil we have taken two three projects. Gallium recovery is one hour let you know in wearer than critical member
Pinakin Parekh
We have a huge amount of Redmond lying with us and there some projects we have taken it up and in coming times there are some visibility that we’ll be getting some valuable item from this. But presently these all are at pilot scale level. It will take another 2, 3 years to firmly decide upon the value which we will get out of this. But in some of the projects like Gallium extraction project we are at the advanced stage of putting up a pilot plant and we will get the first right of
Pallav Agarwal
Extracting and putting up a gallium plant down the line after 23 years.
Pinakin Parekh
So just lastly when we will be starting spending CAPEX on the half a million ton aluminum smelter
Aditya Velkar
When we can expect that project to take off and the CAPEX will start going in
Pinakin Parekh
That. That will happen to be. Capex will start into 27 but that will be starting of the CapEx. But the main CapEx cycle will start in 2829 and 2930 will be the peak CAPEX cycle and will be completing in by 30 or 30 month first half. So we’ll be starting in 27 and three years we’ll be completing our.
Aditya Velkar
Okay so what could the FY27 and 28
Pinakin Parekh
CAPEX figure if we need to build in? In our estimates
Brijendra Pratap Singh
For 0.5 million ton it will be around 18,000 crore. 2728 is asking 27 will be around 4000. Around 4000 to 5000. 5000 crores will be 2728. After that the capacity further increase. Next three years it will go to around 8000 to 10,000
Pinakin Parekh
Because smelter will come with a power plant also
Pallav Agarwal
270 into 4 megawatt power plant also is there. So CAPEX will be considering both of the projects.
Pinakin Parekh
Okay so majorly 4000 crore or majorly for the smelting plant in FY27 is that a correct assumption? And all the best for.
Operator
Thank you. The next question is from the line of Sumangar Nivedia from Kotak Securities. Please go ahead.
Pinakin Parekh
Yeah, thank you for the chance. I got disconnected so please excuse if it’s already discussed. My first question is on coal. Can you just remind us what was the captive coal production for FY26 and for 27 what is the expectation? And then the remaining coal which is roughly around 3 odd million tonnes which we are buying from Coal India. If you could just share what is the mix between linkage and E auction
Brijendra Pratap Singh
As far as our coal production FY26 we have done 4 million tonnes and 4.8 million tonnes. Rest of the coal we are taking through FSA linkage route from coal India e auction very less quantity. We are taking I think out of the total quantity around 10%, 15% only we are taking from e auction route out of the remaining around 2.5 2.6 million ton rest we are taking through linkage rules.
Pinakin Parekh
Okay. And roughly what would be the cost difference between linkage e auction and captive call?
Brijendra Pratap Singh
Between our captive and this linkage call the difference is around 300 rupees. 300 rupees per ton. And in captive to linkage if you see it like captive to e auction
Pallav Agarwal
It will be around maybe
Brijendra Pratap Singh
600 to 700
Pallav Agarwal
In 2526. Our linkage coal cost is around 1800
Brijendra Pratap Singh
And
Pallav Agarwal
Our captive is 1500. 300 difference slightly higher around 2100. It
Brijendra Pratap Singh
Will be around 600 different but the option very less quantity. We are taking around only 10 to 15% of the total requirement. Especially
Pallav Agarwal
For Dhamma Jodi.
Pinakin Parekh
Understood. That’s. That’s very clear. So second on the employee cost, can you guide us for next one or two years? What is our expectation, what is the employee count currently and what is the retirement expectation over the next few years?
Brijendra Pratap Singh
On an average yearly retirement is around 250 numbers will be retiring next 4, 5 years. Our recruitment this year will be doing around maybe 200, 250 recruitment this year. Next year we will see as per our requirement will do. The employee cost will go down because the retiring people are in a very high scale of basic NDA they are in. So that will further go down because you see this year our overall employee cost was around 1721 crores. Overall expenditure on employee. And last year it was 730.
78665 crores. We have saved on employee cost and it is coming overall 10% of the overall expenditure. So this is slightly reduced. Slightly reduced.
Pinakin Parekh
What is the count today? Around 4600.
Brijendra Pratap Singh
Strength. Strength is around 4900.
Pinakin Parekh
Sorry. 48
Brijendra Pratap Singh
80.
Pinakin Parekh
Okay. Because we were expecting the similar around 3, 400 deduction recruitment of 200 odd. But year on year there’s no. There’s no change. Last year also whatever number I have, it’s around 4800.
Brijendra Pratap Singh
Yes, yes. Similar kind of thing. The people retiring and similar kind of people we are recruiting same number. But our fifth stream which is coming we are since we are going for expansion and the fifth stream which is coming for that will be Requiring an additional manpower of around maybe 200 to 250. For which our recruitment process has start started. So that in that area since our volumes will also be increasing. So some additional manpower will be required there.
Pinakin Parekh
Okay. And the pay commission impact, when do we start seeing that what is the estimate
Pallav Agarwal
Commission impact will start from January 27th. There will be some impact on because of implementation the last quarter of this fiscal and from next
Pinakin Parekh
Financial
Pallav Agarwal
Onwards average increase will be 10 to 15%. But if you see the overall cost because our volume will increase. So if you see the port on of course it will be coming down. Though the absolute figure will may go up. But part time cost will become coming down because of our volume.
Pinakin Parekh
Okay. So roughly around 202,000 odd crores is what we can expect from FY28.
Pallav Agarwal
FY27 28. Now it is 1700. It may. Yes. 100 crore may additional cost 15 percentage.
Pinakin Parekh
Got it. Got it. All right. Thank you. And all the best.
Pallav Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Darshan Mehta from Dalit Capital. Please go ahead. Mr. Darshan Mehta. Please go ahead with a question. Your line is unmuted. Mr. Mehta. Can you please proceed ahead with a question. As there is no response, we’ll move to the next question which is from the line of Naresh Naikar from Systematics. Please go ahead.
Aditya Velkar
Yeah. Very good evening sir. Thank you for giving the opportunity. I have the questions. On chemical segment. If you see the revenue was see fall. It is 12% decline from 7,600 crore to 6,690 per floor. So I want to know what are the main primary factors this happens and when the situation will normalize. And going further, how do you see the volume and realization on this segment?
Brijendra Pratap Singh
You are talking about reduction in the revenue from chemical sector.
Bharat Sahu
Yeah,
Aditya Velkar
Revenue and margin both.
Brijendra Pratap Singh
Chemical sector you see our prices has gone down by around $219 compared to last financial year. Which has resulted into less revenue of around 2659 crores. That is the amount of loss we have suffered due to reduction in the spot prices. But we have compensated it by increasing the volume. We have sold around 3.4 lakh tonnes of excess of alumina. By increasing our volume production which I have told earlier also that we are targeting to increase the volumes. We have increased the volume of around production by around 2.5 lakh to 3 lakh tonnes.
So it has given us additional favorable impact of around 1714 crores. So net adverse impact of alumna is around 784 crores only in spite of 2,660 crores of adverse impact due to pricing.
Sumangal Nevatia
Thank
Aditya Velkar
You.
Operator
Thank you. The next question is from the line of Akshay Mera from Nirzar Securities. Please go ahead.
Sumangal Nevatia
Thank you for the opportunity and congratulations on very good set of numbers. Sir. Sir, what would be your view on the alumina prices going forward? Looking at the amount of surplus that is available due to shutdown of some of this manta in Middle east etc. Do you think that it’s. It’s now at the bottom or do you see still scope of the prices going down? That’s number one. And also similar outlook on the prices of aluminium
Brijendra Pratap Singh
As far as alumina prices are concerned is almost on the bottom. We are. Whatever spot tenders we are doing, we are getting the price of around 310, 310 to $320 in few tenders we are getting 3, 630 or 336 dollars also. But what we are expecting this fiscal, this financial year it will be somewhere around in between $300 to $310 average. Alumina pricing will be there. Metal pricing of course at present it is at the peak around maybe 3,600. LME is there. We are expecting that it should be somewhere around average.
If we see the average of the total year somewhere around 3,000 it should. It will come down once the wars are over and all that the situation normalizes. But somewhere around 3,000 because already the demand supply gap will be there. We expect that it will be LME somewhere around 3000 average we will be getting.
Sumangal Nevatia
All right sir. And as you have mentioned that our prices are linked to LME and we do. We do not do more frequent revision in our prices. So can we see. Can we assume that the. The it is basically some sort of a long term arrangement.
Brijendra Pratap Singh
There’s not a long term arrangement because LME keeps on changing and every three days we keep on changing our price as per the variation of the LME is there and the premium. We do the export tenders every six months. We do the export tenders in between also sometimes we do and depending on the whatever the premium we are getting on the export tender we fix up the premium.
Sumangal Nevatia
So. So how much spot and how much would be a long term contract in alumina and aluminum both
Brijendra Pratap Singh
Telling alumina most of our alumina is going on spot tenders
Sumangal Nevatia
Because
Brijendra Pratap Singh
Every month for shipment we are doing on spot. We have done some few of the tenders on the long term that is 3 month and 46 month tender also now at present we don’t have long term because since the pricing is very low we are not going for the long term now we are only relying on the spot tenders Once the prices slightly stabilizes these work situations are over we will try from some long term contract also
Sumangal Nevatia
And are we on track with our expansion plan for alumina and alum
Brijendra Pratap Singh
Alumina Fish stream expansion Our target was June we will start the commissioning soon we will be starting the commissioning Commissioning process takes three to four months because it is a chemical plant process plant to stabilize the production and reach to the 50 60% of the rated capacity so as far as as of now we are on track maybe one or two months delays we are expecting depending on the what happens when we start the commissioning process
Sumangal Nevatia
That was helpful sir. Lastly we have also mentioned in our in our results that the board has decided to discontinue the Utkarsh JV with Mishra Datu Nikam so are there any plans for going in value added products? Because earlier it was emphasized that we will be going into value added products in defense and aerospace and like that. So what would be the plans going ahead and how much would be taking?
Brijendra Pratap Singh
Actually Utkar’s JV was made and that basically at that time the forecast was that the growth in the transportation sector will be there. Of course different sector requirement was there but different sector requirement was very less and the kind of CAPEX involvement was there around 4,500 to 5,000 crores capex was required for that and as of now the requirement in the transportation sector has not grown like that that’s why it is not looking that much favorable Even the IRR with the CAPEX investment was coming negative that’s why we are not going ahead with that as of our existing plant is concerned we are going for one more virod mill to increase our wire rod production Wire rod also we consider as evaluated and the new wire rod mill will be producing more of a alloy grade wire rods and good quality wire rods around 60,000 tons of wire rod mill we are going in it will take around two years Our flat product road product plants we are adding annealing furnace that will increase the production from our road plant Road plant On an average we are doing around 2000 per month we are targeting from this year onwards around 2420500 tons per month that will again be value added these are the two areas where we are working to increase our value added presence in the existing operation.
Of course in our expansions we will be targeting more of a value added. That is wire rods, maybe some roll products or maybe bullet, something like that.
Sumangal Nevatia
That was really helpful, sir. Thank you so much and wish you all the best.
Brijendra Pratap Singh
Thank you.
Operator
Thank you. The next question is from the line of Jay Thakar from Pinakal. Please go ahead.
Aditya Velkar
Hi sir, I’d like to know. In the beginning you mentioned that your additional capacity in alumina would be 2 lakh tons. That was your optimistic approach, right? What would be your conservative approach?
Brijendra Pratap Singh
I think. I don’t know. It’s very difficult to tell. It depends on the commissioning process. Optimistic and conservative. Two lakh is the minimum we are targeting. It can go to maybe 3 or 3.5 lakh also depending on the commissioning process.
Aditya Velkar
Oh, okay. Okay. Got it. My other questions related to pricing were answered. Thank you very much and all the best.
Brijendra Pratap Singh
Thank you. Yes, ma’. Am. Any.
Aditya Velkar
Hello.
Brijendra Pratap Singh
Yeah. Yes please.
Aditya Velkar
Yeah, I just said thank you. All the very best.
Brijendra Pratap Singh
Okay. Thank you. Thank you, Ma’. Am.
Operator
Yes, sir. Yes,
Aditya Velkar
Ma’. Am. Any other
Brijendra Pratap Singh
Questions?
Aditya Velkar
Any other. We are audible to you.
Operator
Yes, sir. The next question is from the line of Rajesh from 361 Capital. Please go ahead.
Pallav Agarwal
Yeah. Good evening, sir. And thanks for the opportunity. I actually missed out on the employee cost increase in FY28 on account of the pay commission. What is the percentage increase you said in FY28 will happen on the employee cost?
Brijendra Pratap Singh
Around 10 to 15% increase in the employee cost will be there. That will be the impact of pay revision in between 10 to 15%. It can be around 12 to 13%.
Pallav Agarwal
Okay. Right. And my second question was around alumina exports. What is the figure for the exports for the year? Because we have given the total aluminum alumina. Alumina hydrate sale of 14.46. But what is the export figure and what is the domestic sales?
Brijendra Pratap Singh
If you see the export sales we have done alumini export sales we have 1.38
Pallav Agarwal
Is domestic. 1.38 is domestic.
Brijendra Pratap Singh
And export sales we have done around 13.09 lakh ton. Yes. And around 1.37 lakh tons of domestic service. So total 1.37
Pallav Agarwal
Lakh tons. Is this calcium alumina or special grades?
Brijendra Pratap Singh
It is combined consigned and hydrate. Both.
Pallav Agarwal
Okay. And special grade aluminum. What would be the production?
Brijendra Pratap Singh
Special grade is very less. We are producing around 15 to 20,000 annually. That much amount only is there. That is also included in this.
Pallav Agarwal
Okay. And in the new capex there is no increase in the Special grade production. It’s all calcium alumina right?
Brijendra Pratap Singh
No, only calcine anhydrate will be there.
Pallav Agarwal
Only anhydrate? Yeah. Okay fine. And so my last question was on the aluminum smelter and power plant. Initially we had talked about putting the power plant in a kind of joint venture structure with NTPC or somebody like that but now are we doing it on our own entirely going to be the full capex to be born by Nalco or there’s no joint venture
Brijendra Pratap Singh
Already we are into agreement with Neville Ignite we have signed one MoU with them. We are in the advanced stage of negotiation with them with Neveli Lignite Corporation for forming a JV company in which 5050 partnership will be there Because Neville Lignite has got a coal mines here in Tal chair and that will be very near to our cpp. So we will be having a cold security also for our expansion. So now we are in the advanced fed of company.
Pallav Agarwal
So the entire capex is not going to be born by Nalco?
Brijendra Pratap Singh
Yeah, yeah. The capex will get shared by both the JV companies
Pallav Agarwal
Right? Sir, just one last question that if I could squeeze in if on the box side royalty. If I look at the other expenses sheet the figure on royalty has varied a lot. In the COVID year it was like below 200 rupees per ton and then like now one in the after Covid was 600 and now it is somewhere around 300. What is the figure of the royalty and what is the royalty charge on the new bauxite mines?
Aditya Velkar
And
Pallav Agarwal
Will
Aditya Velkar
There be any revision in the royalty on the old bauxite mines?
Pallav Agarwal
Any royalty? Anyway let me say royalty figure will changes since the LM is high Royalty will be high per because it is calculated back calculation so it is not specific what
Aditya Velkar
Is the percentage
Pallav Agarwal
Percentage of royalty? A percentage 0.56% as I think it is calculated content of aluminum and epoxide in that pattern is calculated it is coming around royalty part on 450. Presently
Brijendra Pratap Singh
It’s coming around 400 but if LMA increases
Pallav Agarwal
It will go further.
Aditya Velkar
Got it, Got it. And on the new mines also it’s the same
Pallav Agarwal
Quality is almost 42% alumina and if it is directly into LME that’s that sensation on the new mines also the royalty will be same.
Pinakin Parekh
Okay, thank you very much.
Pallav Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Rakesh Roy from Omkara Capital. Please go ahead.
Pallav Agarwal
So my first question regarding export market maybe I missed sir as you said previous 40 to 50% of your Middle Eastern.
Brijendra Pratap Singh
To 50% of export. You are talking about chemical.
Pallav Agarwal
Yes,
Brijendra Pratap Singh
Alumina. Our like total sales last year was around 3.4 lakh. We have increased total sales. Export we have done around 13 lakhs. And domestic we have done around 1 lakh 37 thousand. So export sales is. Domestic sales is almost around 10% of the sport.
Pallav Agarwal
And how much is from Middle East?
Brijendra Pratap Singh
Middle East. What I was telling earlier also around 42. Earlier 50 to 45 to 50% used to go to Middle East. Maybe sometimes more also. But now it has gone down.
Pallav Agarwal
And what is the outlook for F27 for especially for Middle east export. Export this will come down further.
Brijendra Pratap Singh
It will depend on the war. When the war ends. It’s very difficult to predict if the war ends. And because now the route is also closed. But whatever route is there, whatever alumina was going, it is going to the state of almost. So that’s why we have to take it to some road route. So it’s very difficult to predict now.
Aditya Velkar
Right. Sir, my last question. As you say alumina price will come down again for 300 to 310$.
Pallav Agarwal
Any impact on margin front for this will come down because this is
Brijendra Pratap Singh
Any impact on margins. You are telling me already margins means Already compared to last year the it has gone down. Because last year our average alumina price was in 2526. You see it was $376 average which we have got in 2425 it was $570. Now this year we are targeting around. We are seeing expecting that around 300 to $310.
Pallav Agarwal
And how much is go down any as per your calculus. I think it will not affect the margin as a whole. Because if you not getting price in the alumina. But it is being compensated through metal price. Because the
Brijendra Pratap Singh
Talking about alumina
Pallav Agarwal
Alum overall I think there will be no impact in the price.
Aditya Velkar
Agree sir. Why I’m asking because as you say aluminium price will. But
Pallav Agarwal
Alumina price will come down. So your aluminum price will same down 3,000 and. But aluminum price will come down compared to last year. Then overall margin will come down. Overall
Brijendra Pratap Singh
Margin will not go down. You see our Overall revenues around 70% of our revenues is coming from metal that is aluminum and 30% of our revenue this year it it went down to around 27%. 73% from aluminum and 27% from alumina. So
Pallav Agarwal
We
Brijendra Pratap Singh
Are getting better margins on aluminum. So it will not reduce. In fact it will increase our Margin
Pallav Agarwal
Right sir. Thank you sir.
Operator
Thank you. The next question is from the line of Ashish Keshriwal from Nuvama Wealth Management. Please go ahead.
Aditya Velkar
Thank you for the opportunity. So quickly give a few questions. On the raw material side are we seeing how much price increase in coal which we are buying from E auction? What kind of price increase we have seen in last 2, 3 months? 2 months. Actually
Brijendra Pratap Singh
E auction actually very very less quantity coal we are buying only. Suppose if we are buying around. We are taking coal from FSA route through Coal India NCL that is around 2.5 million tons. Out of that around 10 to 15% only buying in the E auction route. And that is approximately 200 to 300 more than the fuel supply agreement, FSA route linkage routes. So 300 rupees more we are getting.
Aditya Velkar
So sir, actually in last two months have we seen any increase in E option coal price in last two months?
Brijendra Pratap Singh
Two months.
Pallav Agarwal
Think we have not done any. We have done last two months we have not done anything
Brijendra Pratap Singh
In
Pallav Agarwal
E option coal. If you compare with the last year average price and current year there is a reduction because it is a notifier price plus some premium. So last year it was average cost to us is 2700 and this year 2526. It is 2400 totally. So there is a trend of reduction of price if you compare it to previous year. So. Yeah understood. Sir, I was just looking at last
Aditya Velkar
Two months because no we have seen increase in
Brijendra Pratap Singh
Due to war situation. You are telling anything? Yes,
Pallav Agarwal
It
Brijendra Pratap Singh
Has not increased. In fact not increased because there is an excess of coal available. Also the coal production capacity has increased. Evacuation is the main issue. So link E auction coal prices have not increased.
Operator
Thank you. The next question is from the line of Karthikeya Kumar Pandey from 361 Capital. Please go ahead.
Sumangal Nevatia
Hello.
Aditya Velkar
Am I audible?
Sumangal Nevatia
Yes. Yes
Operator
You are.
Aditya Velkar
Yes, most of my questions are answered. I just. Sorry if I’m repeating the question again. So can you just briefly
Sumangal Nevatia
Mention
Aditya Velkar
The capex number that
Sumangal Nevatia
You mentioned I guess to a participant before 26.7 and then factoring for aluminium capacity
Brijendra Pratap Singh
This year that is 2627. We are targeting a capex of around 2000 crores next year onwards that is 2728. What I told earlier also somewhere in between 4000 to 5000 crores and after that the subsequently here it will further go up. That will the peak time of smelter erection and all that that will go to maybe 7,000 to 8,000 crores
Aditya Velkar
In totality. It’s 30,000 crores that you.
Brijendra Pratap Singh
It is not 30. Actually it is smelter is 17 to 18. And our power plant is around 12. Since power plant we are going for JV. So only 50% maybe 5,6000 will be requiring for that. It will come down to around 2324. 2324.
Sumangal Nevatia
Okay. Thank you.
Operator
Thank you. The next question is from the line of Vedant Sarda from Nalbang Securities. Please go ahead.
Sumangal Nevatia
Thank you for the opportunity. Can you please give the aluminum realization for Q4FY26. And the current realizations
Brijendra Pratap Singh
Relation of you are talking about alumina or metal.
Sumangal Nevatia
Aluminium. Metal.
Brijendra Pratap Singh
Metal. Aluminium. Average relation which currently which we are Getting is around 3,600 LMEs hovering. But now just because of war situation and all that it has increased. But what we are expecting should be somewhere around 3,000 or 3,100. For the average throughout the year.
Sumangal Nevatia
And Q4 realization FY26. Q4
Pallav Agarwal
Q4 it was around 2000 2000,767 dollar Q4 average. 2526.
Sumangal Nevatia
2765. Hello.
Pallav Agarwal
2676,
Brijendra Pratap Singh
2767.
Sumangal Nevatia
Sorry. Expecting aluminum prices to come below 3,000 going forward in the financial year 2027. So the average would be 3,000 like it is currently overing around 3,500. 3,600.
Brijendra Pratap Singh
Of course this 3,536 is a very escalated thing due to war situation. Because already some of the smelters are closed down. The capacities are reduced. Once the smelter come to the capacity, everything is normalized. So that demand supply gap will further reduce. And at that time the LME may go down.
Sumangal Nevatia
Before this smelter disruption, before this war aluminum was hovering around 3200 to 3300. So that’s why.
Brijendra Pratap Singh
Yes, that is optimistic. Which we are thinking it can go down to maybe 3,000 also. But somewhere around 33,000 to 3,100.
Sumangal Nevatia
Thank you sir. Thank you so much.
Operator
Thank you. The next question is from the line of Arjun from Chasing Lakshmi Investment. Please go ahead.
Pallav Agarwal
Hi sir. Good evening everyone. So congratulations on the robust quarter and in performance. My question is in three parts. The first is. I’m sorry to interrupt
Operator
You, Mr. Arjun. We are unable to hear you clearly. There is a lot of disturbance from your line. Mr. Arjun. Can you please check. Hello Mr. Arjun, can you hear us? As there is no response, we’ll move to the next question which is from the line of Darshan Mehta from Dalit Capital. Please go ahead. Mr. Mehta, please go ahead with your question. Your line is unmuted. Mr. Mehta may be requested to please unmute yourself and proceed ahead with your question. As there is no response, we’ll move to the next question which is from the line of Saket Kapoor from Kapoor and company.
Please. Please go ahead with the question.
Pinakin Parekh
Yeah. Yeah. Namaskar sir. Hope I’m audible.
Brijendra Pratap Singh
Oh
Pallav Agarwal
Yes. Yes. Namaskar.
Pinakin Parekh
Yeah. Yes sir. Firstly if you could please explain the the key reason in terms of our profitability taking a dip for the alumina segment year on year. And if you could give us some color on what are the current price trends with respect to alumina.
Brijendra Pratap Singh
You see as far as alumina is concerned, profitability. I told earlier also this year in alumina segment our volumes has increased. Our volume has increased by around 3.4 lakh tons. Extra sales we have done compared to 2425. 2425 our production was 20.75 lakh tons. This year we have done around 23 lakh tons. So this has given an advantage of around 1714 crores. Of course the prices have gone down. The prices have gone down from 595 average in 2425 to 376 average in 2526 which has resulted into negative impact of around 2659 crores.
Overall if we see the adverse impact is in alumina segment as compared to 2425 is around 784 crores. So that is there because of reduction in the prices. But we have also improved in the efficiencies like caustic soda consumption and all that. That has given some advantage of around 100 to 150 crores. So coming to this year if you see this financial year our volumes will be from existing refinery will be almost similar kind of volume because we have reached to the peak of around 23 lakh tons 15 which is additional refineries coming to lakh further will be added.
So similar kind of figures with because prices will further go down. The prices of alumina which Is average was 376 last year. That is 2526 will go down to around maybe 310 or 320 that will have be having another financial impact of maybe around 1000 or 1200 crores.
Pinakin Parekh
Okay. And when how are we positioning in this $310 mark? Have you contracted for the entire year in terms of that or are the current spot prices are hovering in those levels? What. What have we. How about. Yes,
Brijendra Pratap Singh
Current spot prices are at the level of 310,320 sometime we are getting 330 also. But the kind of situation which is there, there is an excess of alumina in the market. There’s an excess of alumina from Indonesia. The requirement has gone down. That’s why we are expecting the prices may not go up. We’ll be hovering somewhere around 310 to 320.
Pinakin Parekh
Okay sir, earlier there was a formula on the basis of the LME prices say 12 to 13%. Correct me there of the what the LME prices for aluminum that was the price trend for alumina. So have has that trend taken some headback because of the availability of alumina or what should be factoring? Well, because
Brijendra Pratap Singh
Of ability only because earlier we have got in long term around 15, 16, 17 also of the LME. But now when we are going for long term agreement last. In our last long term agreement we got around 11.5, 11 to 11.5% only. And the main reason is the excess of alumina in the market.
Pinakin Parekh
Okay, and so then for the metal part of aluminum, what are we penciling in in terms of the current year means the profitability shift has taken. There is a significant probability shift when you look at the segment result towards the higher aluminum prices. So what should investors penciling in in terms of the profitability from the aluminium segment? With the type of price trend that we currently have and also the incremental volume of the metal that we can produce and sell for the coming year
Brijendra Pratap Singh
As far as the volumes are concerned, volumes metal also we have reached to the peak because our capacity is 4.6 lakhs. Last year we have done around 4.71 lakh tons of cast metal. And this year we are targeting slightly more, that is maybe 2,3000 more. But we have already picked out volumes will be almost similar kind of volumes. LME as of now is on the higher side. That is 3600 or maybe 3550 it is there. But once the situation normalize, the smelters again start producing. The LME will come down surely because now the supply is also not there from Middle east to the other parts of European where from Middle east was going.
That’s why also they have reduced the production. So LME will reduce to around maybe. What it’s very difficult to predict. But what we are thinking is somewhere around 3,000 to 3,100.
Pinakin Parekh
Okay, enter for the first quarter the the quarter which is now in the month of April. What has been our average sales realization for the aluminum metal and how much have we contracted for the for the the remaining part of the quarter
Brijendra Pratap Singh
This quarter first quarter like this month our average relation is somewhere around 3,600 3,550 3,600 we are getting this month that is April and May also we are expecting the first quarter will be good. First quarter we will be averaging around maybe 3,500.
Pinakin Parekh
Okay. So there will be a significant contribution from on the higher higher realization from the aluminum segment. Whereas for the alumina part we will be in the same vicinity of 310 to $315. That was. Yes.
Pallav Agarwal
If you see our metal average metal price for the last year 2526. Our profitability based on the average metal price is 2674 the whole year average. If CD SIR is telling that if our aluminum price very short 2000 to 3100 for the this fiscal 2627 so we’ll be getting $400 more. So that is a comfort zone we are expecting though there is some reduction in the alumina prices but we’ll be getting that comfort in the metal price if the holy metal average price be in the range of 3,000 to 3,100.
Pinakin Parekh
Okay sir. And so just to just to model it out the quarter four numbers give us a base in terms of what we can expect taking into account the current. The current evolving situation. So we should be setting this pace of say 2300 PBT number that should not be trending lower if the cost component does not grow higher. This understanding is correct. On. On a.
Pallav Agarwal
That is correct. Almost. That is correct. If you produce that much of volume then we are expecting that profit of more than 2,000 plus first quarter because price is in our
Pinakin Parekh
And and on the volume front also sir, we have said that we have already reached the peak in terms of both the alumina and the aluminiums of whatever production or dispatches we can do so going ahead we are not getting. We are not going to see any incremental volume for the coming financial year. Advantage of any incremental volume financial
Brijendra Pratap Singh
Year whatever incremental will be coming from the additional fixed frame refinery. So from the existing refinery almost similar kind of volumes will be there
Pinakin Parekh
And the new stream will be would be commensurating in which quarter
Brijendra Pratap Singh
We are starting the commissioning process will be starting in June and the commissioning process itself take around three to four months. So maybe in the last quarter only we will be able to have the production from there. That’s why we have targeted only 2 lakh tons from the new refinery.
Pinakin Parekh
Okay. And for the next year As a whole sir, what would be it will be ramped up to how much?
Brijendra Pratap Singh
Next year capacity is 1 million ton. That is 10 lakh tons. So next year onwards it will be doing 101 million ton.
Pinakin Parekh
Okay. And in terms of selling of the product it will be totally said. It will be catered to domestically or what percentage will go towards as an export. How are we arranged the selling arrangement part
Brijendra Pratap Singh
Like this year. This year out of total sales, whatever sales we have targeted this year around 2 lakh. 2 lakh. I think 2 lakh 50,000. We have targeted for. The method that we have targeted for domestic and export will be around. I think 13 or 14 less will be export. So domestic will be around somewhere around 10 to 15% of the export.
Pinakin Parekh
Okay. Majority will be towards the. Toward the export only as has been the case for the current.
Brijendra Pratap Singh
Okay.
Pinakin Parekh
And lastly said towards this the. The caustic soda part. And. And how is our general the JV which we have with how have been in the performance from the same. And what. What should we anticipate going ahead from. From the same.
Brijendra Pratap Singh
You see denial JV in last financial year that is 2520. 2425. It has given a negative impact of around how much? Their
Pallav Agarwal
Total loss is 38 crore. Repair only.38.
Brijendra Pratap Singh
But last year it was.
Pallav Agarwal
They have reduced the loss from 135 crore to 38 crore. Because 2425 they have incurred a loss of 135 crores. But they have brought down to 38 crores this year. And most importantly the last quarter they have made a profit of 11
Pinakin Parekh
Crore.
Pallav Agarwal
That is the very point for we expect
Brijendra Pratap Singh
That this year again they will turn to profit.
Pallav Agarwal
And the
Brijendra Pratap Singh
Negative impact which they are having which
Pallav Agarwal
Will further reduce. Oh. He’ll be getting some. Some money from
Pinakin Parekh
Them. Okay. And how have the price trend been for the costage? The. Our. Our. The. The cost which we have incurred through this jv. Although it is at arm’s length. What. How are the caustic soda prices trended?
Pallav Agarwal
It does
Brijendra Pratap Singh
For jv. You see whatever prices we do the rest of the quantity we 50% of the quantity we take from the market.
Sumangal Nevatia
So
Brijendra Pratap Singh
Whatever pricing we are cost we are getting from the market that is applicable to jv. They have to give us at the same price. There is no price concession.
Pinakin Parekh
Yes sir. There is no price. That was. I’m asking how have the price trend been for the caustic soda for the quarter ending March 26. Comparison is like
Brijendra Pratap Singh
Last year 2526. It was 42177 rupees per ton average. The quarter one 2627. What we are seeing is it will be around 45,000. There is an increase of around 3,000.
Pinakin Parekh
Okay. From last year averages it will be higher by 3,000 for the first quarter June quarter
Brijendra Pratap Singh
One quarter two. Because we have ordered for six months. The first six months will be around 3,000 more.
Pinakin Parekh
Okay. And lastly sir, on the CWIP the closing balance was 6,300 crore. So what portion will get capitalized for for this year and what kind, what are the facilities? I think so. I think. I think. I
Pallav Agarwal
Think 90, 100% will be capitalized this year. Because the majority is towards the 15 expansion. It is around 5,500. So if we capitalize from June onwards. So I think this year the whole will be converted to asset capitalization.
Pinakin Parekh
And. And all. And all the backward integration part. For the coal availability. On the coal mining part, sir, how much. What is the current. The current update on the same. How much of the coal are we mining ourselves and through the MDO route. And answer
Brijendra Pratap Singh
That question.
Pinakin Parekh
Very sorry sir. You see the coal
Brijendra Pratap Singh
Requirement is around 7.2 million ton. Out of that our own production will be around 4.8 million ton. And rest will be taking mostly from our linkage route from coal India around 5 to 10%. We go for E option.
Operator
Sorry to interrupt. Maybe request to please join the queue. Thank you very much. The next question is from the line of Ashish Keshrival from Nuvama Wealth Management. Please go ahead.
Aditya Velkar
Yeah. Thanks for the opportunity, sir. Sorry, I got disconnected that time. So sir, I think you mentioned that E auction coal prices. We have not seen any major increase in last two months. That’s right.
Pallav Agarwal
Yes sir.
Aditya Velkar
Okay. So secondly, the way you mentioned about costly soda price. Is it possible to share your different raw material prices like CP, Coke, CT pitch and aluminum chloride. What it was in FY26. And then you
Brijendra Pratap Singh
See costly soda prices. Average 2526 was 42,000. It has gone to 45,000. CP Coke 2526 it was 53,000. This year Q1 and Q2 it will be somewhere around 57,000. Aluminium fluoride one 21,000. It has gone to one 30,000. HFO has further increased. HFO and LDO. That is the substantial increase which we are seeing from 46,000 to 70,000. So this kind of increase we are seeing in caustic soda, CP, Coke, aluminum fluoride and HFO.
Aditya Velkar
What about CT pitch?
Brijendra Pratap Singh
CT pitch is almost same city pitch, 8 minutes city pitch. No, it has gone up from 44000 to 56 000. The city pitch has gone up from 53000 to 57 000. Oh sorry. CP Coke has city pitch from 53000 to
Pallav Agarwal
57000
Brijendra Pratap Singh
Month. Around 4500 increase there city and CP from 44,000 to 56,000. This may be around maybe 11 12,000 increases.
Aditya Velkar
If I’m looking at from FY26 average versus first quarter. We are seeing increase in all our raw material prices. I think that is only been somewhat offset by. You know, I don’t know from where it is being offset. Your cost of production definitely should increase from. But we are talking about 150. 155. Isn’t it so?
Brijendra Pratap Singh
Yes. Yes. Cost of production will increase. Will increase. So when we are talking
Aditya Velkar
About 165 to 160 that was for Q4 or FY26. 155.
Pallav Agarwal
One average cost is around 155156 for the whole year. If you see the Q4 it is around 115750. So we are keeping a highest rate of 160. It will. In any case it will not go beyond 160.
Aditya Velkar
Understood? Understood. And then lastly what could be our power cost per unit?
Pallav Agarwal
Our cost per Unit is around 3.15.
Aditya Velkar
This is at EBITDA level we are talking about.
Pallav Agarwal
It is curry and coming around. And if we see the expenditure, it is coming around. Power cost is 31% of the total cost. Yes, total cost. If it is the revenue, it is coming around.
Aditya Velkar
Actually I was trying to ask you know what could be our.
Pallav Agarwal
Okay,
Aditya Velkar
So I was looking at what could be our power cost per ton of aluminum. So when we are talking about 155 to 160000 per ton of aluminum production. Yes.
Pallav Agarwal
What
Aditya Velkar
Could be our power cost in that?
Pallav Agarwal
It is coming around 31. 55 to 60,000. 55 to 60,000.
Aditya Velkar
Okay. Okay. Okay sir. Thank you so much. That’s helpful.
Pallav Agarwal
Thank you. Thank
Operator
You. Ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Bharat Kumar Sahu for closing comments.
Bharat Sahu
Thank you, ma’. Am. On behalf of Nalco, I thank all participants who took out their valuable time and shared their views and to pinpoint in nalco’s growth journey. We thank you Tim Koros for facilitating this earning come for Q4 and FY26. And we are also thankful to Systematics group for hosting the earning call. We look forward for similar kind of cooperation on continued basis. Thank you. Thank you all.
Operator
Thank you. On behalf of Nalco. Yes, sir. Please go ahead.
Brijendra Pratap Singh
Okay. Thank you. Thank you. Okay, you go ahead.
Operator
Thank you, sir. On behalf of Narco Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.