National Aluminium Company Limited delivered a robust start to FY27, with standalone net profit surging 88% year-on-year to ₹2,002.38 crore in Q1FY27. The growth was driven by a 39% increase in revenue from operations to ₹5,302.38 crore and significant margin expansion in its core aluminium segment. The strong operational performance positions the company well for the fiscal year, while the Board’s recommendation of a final dividend underscores confidence in cash flows.

The Board of Directors, meeting on July 31, 2026, approved the unaudited financial results pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by joint statutory auditors SRB & Associates and B M Chatrath & Co LLP. In addition to the financial approvals, the Board convened the 45th Annual General Meeting for August 31, 2026, and appointed M/s. Tanmaya S. Pradhan & Co and M/s. S Dhal & Co as cost auditors for FY26-27.

Financial Performance Highlights

The company’s top-line growth was broad-based, with aluminium revenue jumping 55% to ₹4,188.82 crore. Chemicals revenue remained relatively stable at ₹1,569.93 crore. Cost management improved, with employee benefits expense declining to ₹395.48 crore from ₹445.44 crore in the same period last year. Finance costs also reduced slightly to ₹9.55 crore.

Dividend and Corporate Actions

Shareholders will benefit from a recommended final dividend of Re.1.00 per share (20% on face value of ₹5) for FY25-26. This brings the total dividend payout for the year to ₹11.50 per share, including three interim dividends already paid totaling ₹10.50. The record date for the final dividend is fixed as August 24, 2026. Payment will be made within 30 days of declaration, subject to shareholder approval at the upcoming AGM.

What the Numbers Show

The divergence between revenue growth (39%) and expense growth (11%) highlights significant operating leverage in Q1FY27. While raw material costs rose to ₹728.54 crore from ₹551.79 crore, power and fuel costs increased disproportionately to ₹960.07 crore from ₹854.29 crore, suggesting higher input intensity or volume mix shifts. Despite this, the profit before tax nearly doubled, indicating that pricing power in the aluminium segment effectively offset input inflation. The chemical segment, however, saw a decline in segment result to ₹270.92 crore from ₹502.79 crore, pointing to softer margins in that business line.

Key Disclosures and Risks

The statutory auditors highlighted an emphasis of matter regarding the non-recognition of revenue from two wind power plants in Rajasthan due to pending execution of a Power Purchase Agreement (PPA) since April 1, 2019. The matter remains sub-judice before the Hon’ble High Court of Rajasthan. Additionally, the Board consented to the winding up of Utkarsha Aluminium Dhatu Nigam Limited, a joint venture deemed commercially unviable, after obtaining clearance from the Ministry of Mines. The company has also signed a Joint Venture agreement with NLC India Limited to develop a 1,080 MW thermal captive power plant in Odisha.

National Aluminium Company Limited (NALCO), a Government of India Enterprise headquartered at Nalco Bhawan, Nayapalli, Bhubaneswar, has formally written to BSE Limited and the National Stock Exchange of India Limited (NSE) requesting a waiver of a fine imposed for non-compliance with the board composition requirements under SEBI listing regulations. The communication, signed by Company Secretary & Compliance Officer B. K. Sahu, was submitted following deliberations at the company's 369th Board of Directors meeting.

Fine Imposed for Non-Compliance with Regulation 17(1)

BSE and NSE, vide their communications dated 27.05.2026, informed NALCO of the imposition of a fine for non-compliance with Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, pertaining to the composition of the Board of Directors. The key details of the fine are as follows:

NALCO's Position: Appointment Authority Rests with Government of India

NALCO, in its response, clarified to both exchanges that as a Central Public Sector Enterprise (CPSE), the authority for the appointment of Directors — including Independent Directors — is vested with the President of India. The company stated that it does not have any control over such appointments and, therefore, the non-compliance was not attributable to any action or inaction on its part.

The company had initially written to BSE and NSE on 02.06.2026, seeking condonation of the non-compliance and waiver of the penalties for the quarter ended 31.03.2026. On the same date, the matter was also communicated to the Promoter of the Company, i.e., the Government of India through the Ministry of Mines, being the Administrative Ministry, with a request to expedite the appointment of the requisite number of Independent Directors.

Board of Directors Takes Cognizance at 369th Meeting

The matter was placed before the Board of Directors at their 369th meeting held on 14.07.2026 at Bhubaneswar. After detailed deliberation, the Board took cognizance of the communications from BSE and NSE dated 27.05.2026 and issued the following advisories:

• Exchanges to be informed that NALCO is a CPSE and the authority for appointment of Directors is vested with the Government of India; hence, the company has no control over such appointments, and the non-compliance for the quarter ended 31.03.2026 may be condoned with penalties waived.
• The Chairman-cum-Managing Director was advised to write to the Administrative Ministry, apprising it of the penalties imposed by BSE and NSE due to the absence of an adequate number of Independent Directors on the Board, and requesting early appointment of the requisite number of Independent Directors to comply with the provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

Formal Waiver Request Submitted to Exchanges

In view of the Board's directions and the company's ongoing engagement with the Ministry of Mines, NALCO has formally requested BSE and NSE to favourably consider the waiver application submitted on 02.06.2026. The company has reiterated that the matter relating to the early appointment of the requisite number of Independent Directors is continuously being taken up with the Administrative Ministry to ensure compliance under the applicable statutory provisions.

NALCO has requested that the non-compliance with Regulation 17(1) of SEBI (LODR) Regulations, 2015 for the quarter ended 31.03.2026 be condoned, and the imposition of fine of Rs 5,31,000/- (including GST @18% on basic fine amount of Rs 4,50,000/-) be waived by both exchanges.