Hindalco Industries Q2 Net Profit Soars 59% to Record ₹7,533 Cr on Novelis Recovery
Hindalco Industries reported record Q2 FY27 consolidated net profit of ₹7,533 crore (+59% YoY) on revenue of ₹91,708 crore, powered by Novelis and copper EBITDA.
Key Takeaways
- Consolidated revenue from operations climbed 39% YoY to an all-time high of ₹91,708 crore in Q2 FY27.
- Consolidated net profit reached ₹7,533 crore, rising 59% YoY from ₹4,741 crore, yielding an EPS of ₹33.93.
- Novelis adjusted EBITDA grew 20% to $508 million, while domestic copper EBITDA jumped 164% to a record ₹1,673 crore.
Hindalco Industries delivered its strongest quarterly financial performance on record, posting a 58.9% year-on-year surge in consolidated net profit to ₹7,533 crore for the second quarter ended September 30, 2026. Top-line revenue from operations advanced 38.8% to ₹91,708 crore, powered by volume normalization at US subsidiary Novelis and surging domestic copper demand.
What Happened
The metals manufacturer expanded its consolidated EBITDA by 42.0% YoY to ₹13,757 crore, driven by higher London Metal Exchange (LME) aluminum prices, improved downstream conversion margins, and disciplined energy procurement. Earnings per share (EPS) expanded to ₹33.93 compared to ₹21.35 in Q2 FY26. Non-LME linked downstream businesses accounted for ₹6,860 crore or approximately 50% of total EBITDA, demonstrating structural resilience against commodity downcycles.
Q2 FY27 Financial Snapshot
| Segment / Financial Metric | Q2 FY27 | Q2 FY26 | YoY Change (%) |
|---|---|---|---|
| Consolidated Revenue from Operations | ₹91,708 Cr | ₹66,058 Cr | +38.8% |
| Consolidated Operating EBITDA | ₹13,757 Cr | ₹9,688 Cr | +42.0% |
| EBITDA Margin (%) | 15.00% | 14.66% | +34 bps |
| Novelis Net Revenue | $5,900 Mn | $4,720 Mn | +25.0% |
| Novelis Adjusted EBITDA | $508 Mn | $423 Mn | +20.1% |
| Aluminium Upstream EBITDA | ₹7,009 Cr | ₹4,522 Cr | +55.0% |
| Copper Segment Operating EBITDA | ₹1,673 Cr | ₹634 Cr | +163.9% |
| Consolidated Net Profit (PAT) | ₹7,533 Cr | ₹4,741 Cr | +58.9% |
The domestic copper segment delivered standout outperformance, generating ₹1,673 crore in EBITDA compared to ₹634 crore a year ago, supported by sustained manufacturing consumption across power transmission grids and electric vehicle drivetrains.
Sector Context & Earnings Quality
Novelis demonstrated decisive operational recovery following production bottlenecks at its Oswego recycling facility earlier in the year. Total Novelis shipments stood steady while adjusted EBITDA per ton rebounded to $540, aligning with management guidance. In India, aluminum upstream operations benefited from lower coal linkage premiums and captive bauxite mine ramp-ups, keeping conversion costs in the lower global quartile. Furthermore, Hindalco continued deleveraging its consolidated balance sheet, reducing net debt-to-EBITDA below 1.25x.
Independent TradeKaizen Analysis & Key Risks
TradeKaizen Analysis: Hindalco's earnings composition reflects superior asset integration compared to global commodity peers. The 164% surge in copper profitability highlights how India's public infrastructure capex is driving structural volume growth for cathode and rod fabrications. By deriving half of its operational EBITDA from converted and downstream products, the company has effectively protected its operating cash flows from volatile swing factors on international commodity exchanges. Balance sheet leverage remains conservative, providing substantial headroom for the ongoing Bay Minette rolling mill expansion.
Key risks include execution timelines and capital expenditure overruns at the $4.1 billion Bay Minette facility in North America, unexpected declines in automotive sheet demand, and potential scrap aluminum import tariff adjustments by international trade jurisdictions.
Disclaimer: This report is for informational purposes only and does not constitute investment advice.
Sources & References
- View sourceNSE Corporate DisclosuresExchange / Regulatory Filing
Consolidated Financial Results for the Second Quarter ended September 30, 2026
- View sourceEconomic TimesNews Report
Hindalco Q2 Results: Net Profit Surges 59% to ₹7,533 Crore on Robust Novelis Shipments
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