Hindalco Q2 results: Net profit rises 20% to ₹2,266 crore, EBITDA advances 36%, margin expands by 270 basis points

Hindalco, the country's largest aluminium and copper producer, on Friday, November 7, reported net profit of ₹2,266 crore in the second quarter of current financial year, marking an increase of 20% from ₹1,891 crore the same period last year.

Its revenue from operation in July-September period advanced 11% to ₹24,780 crore from ₹22,262 crore in the year-ago period.

Hindalco reported strong operational performance in September quarter as its EBITDA (earnings before interest, taxes, depreciation and amortization) also known as operating profit jumped 36% to ₹3,740 crore and its EBITDA margin expanded by 270 basis points to 15%.

“Hindalco continued its growth momentum amid global volatility, delivering strong performance in both volumes and profitability. This performance was driven by robust contribution from India business, disciplined cost management and operational efficiencies across segments," said Satish Pai, Managing Director.

"The aluminium upstream business continued to outperform with industry-best EBITDA margins of 45%. The downstream segment reported a solid quarter with 69% EBITDA growth, supported by all-time high volumes and a superior product mix. The Copper business remained resilient, performing in line with our guidance even with lower TC/RCs. Novelis recorded a sequential improvement in both EBITDA and Net Income, despite net tariff impact partially offset by better pricing and accelerated cost efficiency initiatives," Pal added. Hindalco's revenue from upstream aluminium business jumped 10% to ₹10,078 crore in second quarter and sales from downstream aluminium business rose 20% to ₹3,809 crore.

Hindalco’s copper segment delivered 11% annual revenue growth to ₹14,563 crore, even as overall copper metal sales declined marginally.

Copper metal sales stood at 113 kilo tonnes, down 3% from the previous year, impacted by softer market conditions. However, copper continuous cast rod (CCR) sales rose 8% to 97 kilo tonnes, driven by steady demand from downstream sectors such as electricals and infrastructure.

Despite a decline in treatment and refining charges (TC/RCs) in the global market, the company maintained a healthy EBITDA of ₹634 crore, supported by higher realisations from sulphuric acid, a key by-product of copper smelting operations.

On the project front, Hindalco said its copper tubes project has entered the commissioning phase, marking a key milestone in expanding its downstream product portfolio. Additionally, the construction of its copper recycling project is progressing as per schedule.

As of 2:00 pm, Hindalco shares traded 0.67% higher at ₹793, outperforming the NIFTY50 index which was down 0.14%.