Hindalco posts record Q2 FY27 profit as India business and Novelis recovery lift earnings

Hindalco Industries combines Indian aluminium and copper operations with Novelis, its global rolled-aluminium subsidiary. A recovery at Novelis’ Oswego plant and stronger India operations helped the company deliver its highest-ever quarterly consolidated profit in the second quarter of FY27.

Consolidated revenue rose 39 per cent YoY to a record Rs 91,708 crore, while profit after Tax (PAT) increased 59 per cent to an all-time high of Rs 7,533 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 42 per cent to Rs 13,757 crore. Basic earnings per share rose to Rs 33.93 from Rs 21.35 a year earlier. Revenue was also 8 per cent higher QoQ, although EBITDA declined 8 per cent from the preceding quarter’s Rs 14,989 crore.

The India business was a major contributor, with revenue rising 42 per cent YoY to Rs 36,123 crore and EBITDA increasing 70 per cent to Rs 8,765 crore. Its PAT rose 91 per cent to Rs 5,852 crore, helped partly by the transition to the new tax regime from April 1, 2026, which reduced the effective tax rate to 25 per cent from 29 per cent a year earlier.

Aluminium upstream EBITDA increased 55 per cent YoY to Rs 7,009 crore, supported by favourable market conditions, though it was 5 per cent lower QoQ. Copper delivered its highest-ever quarterly EBITDA of Rs 1,673 crore, up 164 per cent YoY, aided by higher metal and by-product realisations and a one-time gain. Novelis reported a 32 per cent rise in business-segment EBITDA to Rs 4,858 crore, while its shipments were 2 per cent lower YoY. The Oswego hot mill has normalised production, while the 600-kilotonne Bay Minette facility produced its first cold-rolled coil in September and is scheduled to begin commercial shipments in Q1 FY28.

Cash flow from operations rose 57 per cent YoY to Rs 23,319 crore, even as capital expenditure increased 83 per cent to Rs 20,719 crore for growth projects. Net debt to EBITDA improved from 1.95 times at June-end to 1.80 times as of September 30, 2026, but remained above 1.23 times a year earlier.

As of 1:55 pm on November 6, 2026, Hindalco shares traded at Rs 936.80, down 0.34 per cent from the previous close. The stock remained 18.5 per cent below its 52-week high of Rs 1,149.50. It had gained 14.06 per cent over one year, compared with a 2.16 per cent decline in the BSE 500, representing an outperformance of about 16.2 percentage points over the period.

What This Means for Investors

The results strengthen the case that Hindalco’s portfolio is becoming less reliant on aluminium prices alone. Businesses less directly linked to London Metal Exchange (LME) prices produced a record Rs 6,860 crore of EBITDA, up 50 per cent YoY, while India upstream retained a 52 per cent margin. Normalised Oswego output and Bay Minette’s planned commercial shipments in Q1 FY28 could improve the downstream earnings mix. However, copper included a one-time gain and Novelis included insurance recoveries.

The development is supportive over the medium term, combining stronger operating cash generation with progress on projects. Yet execution and balance-sheet discipline remain central. Capital expenditure rose 83 per cent to Rs 20,719 crore and net debt to EBITDA, although down from June, was 1.80 times at September-end versus 1.23 times a year earlier. The key test is whether project ramp-ups and Novelis cash generation produce sustained deleveraging.

Disclaimer: The article is for informational purposes only and not investment advice.