Nalco Share Price Today: Navratna PSU In Red Despite Strong Q1 Result, Dividend Announcement; Time To Buy?

NALCO Share Price Today: Shares of National Aluminium Company opened in red on Friday, August 8, a day after the public sector undertaking (PSU) reported its June quarter result and dividend.

NALCO shares opened at Rs 189.15 per share on BSE on Friday. The Navratna PSU stock was trading 0.29% lower at Rs 189.10 per share on BSE at 10 am with a market capitalisation of Rs 34,730.71 crore. The stock had touched an intraday low mark of Rs 186 apiece and an intraday high mark of Rs 191.65 per share.

NALCO Q1 Result Review

Despite posting a stronger Q1 profit on a year-on-year basis, the PSU's net profit declined on a quarter-on-quarter basis. The company's revenue stood at Rs 38.1 billion against brokerage Motilal Oswal's estimate of Rs 43.2 billion. Weak revenue growth was the result of softening of alumina prices, highlighted Motilal Oswal in its report.

"Revenue from the chemical business stood at INR16.3b, up 91% YoY but lower by 36% QoQ, led by the softening of alumina prices. EBIT came in at INR5b (vs INR311m in 1QFY25) and declined 62% QoQ," states brokerage in its report.

NALCO Share Price Recommendation

Motilal Oswal maintained a neutral stance on stock. NALCO's conference call is scheduled for 11 am on Friday and the Navratna PSU target price is likely to be revised after the management's commentary. Antique Stock Broking maintained a 'Buy' call for NALCO for the long-term. The brokerage has fixed a target price of Rs 265 per share indicating a 40% upside in its valuation.

Nalco Q1 Result Recap

The state-run National Aluminium Company (NALCO) had reported a strong 78% year-on-year increase in its net profit to Rs 1,049 crore for the June quarter of financial year 2025-26. The PSU had reported a net profit of Rs 588.42 crore in the June quarter of FY25.
The profit declined on a quarter-on-quarter basis bu nearly 49% from Rs 2067.33 crore in the preceding quarter.
NALCO's revenue from operations surged by 33% on an annual basis to Rs 3,806.94 crore in the June quarter against Rs 2,856 crore in the same quarter last year. However, NALCO revenue declined by 28% from Rs 5,267.83 crore recorded in Q4FY25.

Sharp Surge in Revenue From Chemicals

NALCO's revenue from the chemical segment witnessed a whopping 91% year-on-year increase in its revenue to Rs 1,628.11 crore from Rs 852 crore reported in the year-ago period. The metal producer reported a Rs 852 crore revenue from the chemicals segment from the same period last year.

Company's aluminium revenues increased by 7% year-on-year to Rs 2,708.34 crore from Rs 2,534.68 crore. The Navratna PSU's total expense for the quarter stood at Rs 2,501.18 crore, which was nearly Rs 2099 crore higher in the corresponding quarter.

NALCO Dividend

The Bhubhaneshwar-based metal producer also announced a dividend of Rs 10 per share each with a face value of Rs 5. NALCO dividend will be paid to eligible shareholders within 30 days after determining the eligibility of shareholders.

"The Board of Directors has recommended final dividend @ Rs.2.50/‐ per share (50% on face value of Rs.5/‐ each) for the financial year 2024‐25, subject to the approval of shareholders in the ensuing 44th Annual General Meeting (AGM). The final dividend @ Rs.2.50/‐ per share, as recommended by the Board of Directors, if approved in the ensuing 44th AGM, will be paid within a period of 30 days from the date of declaration, as per the provisions of the Companies Act, 2013," read a BSE filing by NALCO.

The company also gave an update about the interim dividend announced earlier. In its update, NALCO said that the recently announced final dividend, has come after the payment of the first interim dividend of Rs 4 apiece and second interim dividend of Rs 4 apiece in financial year 2024-25.