Hindalco's September-quarter profit jumps almost 59% on record copper earnings

what happened

India's Hindalco Industries said its consolidated net profit for the September quarter of fiscal 2027 rose 58.8% from a year earlier, to Rs 7,533 crore from Rs 4,741 crore. Revenue climbed to Rs 92,651 crore and EBITDA grew 42% to Rs 13,757 crore. The company called the result a record, noting that its copper unit posted its highest quarterly EBITDA ever and that Novelis returned to steady output after its Oswego plant normalised.

Managing director Satish Pai told a media briefing that Indian aluminium production costs could be about 5% higher in the December quarter than in the previous one, because coal is expensive and scarce in northern India. He said costs should start easing in the March quarter, as winter cuts power demand in the north and coal supply improves. Coal stocks at some plants are around half of normal levels, while Odisha sites are at normal levels.

The company said businesses not tied to LME prices supplied almost half of its earnings. Nuvama Institutional Equities said Hindalco has hedged 26% of its expected FY28 aluminium volumes, which cushions the company against a fall in metal prices.

why it matters

For markets, the profit gain rests on copper and on products that are not priced off the LME, so results depend less on swings in aluminium prices. Still, expensive coal will keep pressure on margins at Indian aluminium smelters in the near term, showing how energy costs weigh on metal processors.

market impact

Hindalco shares and the aluminium sector: strong results support the stock, while costly coal weighs on smelter margins

• ▲Hindalco shares pressure up — record profit for the company and a 42% rise in EBITDA

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