Hindalco Q1 Result: Net profit Up 30% Driven By Strong Domestic Output; Stock Recovers From Day’s Low

Hindalco Q1 Result: Aditya Birla Group's flagship metals company, Hindalco, on Tuesday, reported a 30% year-on-year increase in its June quarter profit for financial year 2025-26. The company's net consolidated profit for Q1FY26 stood at Rs 4004 crore, which is 30% higher than Rs 3,074 crore reported in Q1FY25.

Hindalco shares recovered from day's low post the Q1 announcement. The metal stock was trading nearly 2.7% lower during the early trading hours, but recovered and was down nearly 0.74% at Rs 666.95 per share on BSE on Tuesday during the closing hours.

A day ago, Hindalco's subsidiary, Novelis, had reported a decline in its net profit for the June quarter.

Hindalco Q1 Result Key Highlights

Hindalco's net profit stood at Rs 4004 crore in the June quarter, up 30% year-on year. Whereas, the company's revenue increased by nearly 13% on a year-on-year basis to Rs 64,232 crore during the quarter under review. Company's aluminium upstream quarterly EBITDA stood at Rs 4,080 crore, which is 17% higher than the corresponding quarter.

Hindalco also reported an all-time high aluminium downstream quarterly EBITDA at Rs 229 crore, which is 108% higher than EBITDA reported in Q1FY25. Company's copper EBITDA at ₹673 crore, in line with guidance.

Novelis Performance in Q1

Novelis shipments increased by 1% on a year-on-year basis to 963 KT with can volumes surging by 8%. Novelis cost reduction initiatives target $100 million run-rate savings by FY26 and $300 million by FY28, according to Hindalco's press release.

Hindalco's US-based subsidiary Novelis reported a 36% year-on-year decline in its net income (attributable to shareholders) to $96 million for the first quarter of fiscal year 2025-26.

Restructuring charges, surge in aluminium scrap prices, unfavourable product mix, and negative impact of United States tariff were some of the key reasons that impacted Novelis's June quarter earnings.The company's special items, net income fell 43% to $116 million, with its adjusted EBITDA declining by 17% to $416 million.

However, the adjusted EBITDA per tonne fell by 18% to $432.The US-based company's net sales for the June quarter surged by 13% to $4.7 billion, supported by higher average aluminium prices and a marginal surge in total rolled products shipments to 963 kilotonnes.