Aluminium prices have hit a fresh record, and NALCO’s shares responded with a sharp rise.
Why NALCO Stock Jumped
Global aluminium traded above $3,000 per tonne on the London Metal Exchange. Tight supply – limited smelting capacity in China and high power costs in Europe – pushed prices up, while construction and renewable‑energy projects kept demand steady. As India’s biggest aluminium producer, NALCO benefits directly from higher metal prices.
Recent Financial Performance
In the latest quarter, NALCO posted a net profit of ₹1,430 crore, a 37% increase year‑on‑year. Revenue grew 7.2% to ₹4,293 crore, helped by stronger aluminium prices. The board also announced an interim dividend of ₹4 per share (80% of face value) for FY26.
Future Plans and Capital Expenditure
The company is expanding its production capacity:
- Building a 5th stream alumina refinery (1 MTPA) expected by FY27.
- Planning a 0.5 MTPA aluminium smelter and a 1,080 MW captive power plant, with a total capex of around ₹30,000 crore.
- Targeting a 70:30 debt‑to‑equity ratio for the expansion.
Execution of these projects will be key to sustaining growth.
Share Price Momentum
NALCO’s shares have risen over 4% to ₹344.85, a 52‑week high, and are up about 9% in the last five trading days. Over the past month the stock is up 29%, and it has delivered a 620% return in the last five years, making it one of the top‑performing PSU stocks.
What This Means for Investors
The price rally reflects both the global aluminium price surge and NALCO’s solid earnings and growth plans. Retail investors may see further upside if the company successfully expands capacity and keeps costs under control.
Disclaimer
Remember, this is perspective, not a prediction. Do your own research or consult a financial advisor before making any investment decisions.