NALCO saw its shares jump nearly 8% following the release of its impressive quarterly results and a dividend announcement. The state-owned aluminium producer reported significant growth across key financial metrics, demonstrating robust performance in the face of market challenges.

Financial Highlights

NALCO's financial performance showed remarkable improvement, with net profit surging 36.7% year-on-year to ₹1,430.00 crore. The company's revenue also saw a substantial increase of 31.5%, reaching ₹4,292.00 crore. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 24.8% to ₹1,932.90 crore, while EBITDA margins improved significantly from 38.7% in the previous year to 45.00% in the current quarter.

Dividend Announcement

In a move that is likely to please shareholders, NALCO's board has approved an interim dividend of ₹4.00 per equity share. This dividend payout amounts to a total of ₹734.65 crore, reflecting the company's strong financial position and commitment to delivering value to its investors.

Future Outlook

NALCO's management has provided insights into their expectations for the aluminium market. They anticipate that LME (London Metal Exchange) aluminium prices will average around $2,670.00 per tonne in calendar year 2026. This projection suggests a cautiously optimistic outlook for the medium term.

Expansion Plans

The company is making progress on its strategic growth initiatives. NALCO's alumina refinery expansion project is reportedly on track, aiming to increase capacity by 1 million tonnes per annum. This expansion will bring the total capacity to 3.1 MTPA (Million Tonnes Per Annum). The company expects to commission this expanded capacity by June 2026, potentially positioning NALCO for increased production and market share in the coming years.

Market Response

The strong quarterly results and positive future outlook have been well-received by the market, as evidenced by the nearly 8% jump in NALCO's share price. This surge reflects investor confidence in the company's performance and growth prospects.

NALCO's robust financial results, coupled with its expansion plans and dividend announcement, paint a picture of a company that is navigating the challenges of the aluminium industry while focusing on growth and shareholder returns. As the global demand for aluminium continues to evolve, NALCO's strategic initiatives and financial strength may position it well to capitalize on future opportunities in the sector.

NALCO (National Aluminium Company Limited), a Navratna CPSE under the Ministry of Mines, has announced an ambitious ₹7,000 crore investment plan as part of its Amrit Kal Vision 2047, coinciding with the release of its robust second-quarter financial results for the fiscal year 2025-26.

Investment Strategy

The company's investment strategy focuses on three key areas:

1. Smelter expansion
2. Alumina refinery upgrades
3. Renewable energy integration

This strategic capital expenditure aims to enhance NALCO's value-added product mix and improve cost competitiveness through backward integration. The company is also targeting an increase in its export share to drive sustainable EBITDA growth.

Q2 Financial Highlights

NALCO's financial performance for Q2 FY 2025-26 showcases significant growth:

Operational Performance

The company achieved notable improvements in production and sales:

• Highest-ever Alumina Hydrate production of 5.76 lakh MT in Q2
• Aluminium Cast Metal production increased to 1.19 lakh MT, up 3% YoY
• Alumina export sales surged by 33% to 3.65 lakh MT

Dividend Announcement

The Board of Directors has approved an interim dividend of ₹4 per equity share (80% on face value of ₹5 each) for FY 2025-26, amounting to ₹734.65 crore.

Management Commentary

Shri Brijendra Pratap Singh, Chairman-cum-Managing Director of NALCO, stated, "Our Q2 and H1 results stand as a testament to the hard work and commitment of all employees and the unwavering support of all stakeholders. We have demonstrated resilience through operational excellence, cost-saving measures, and sustained productivity, supported by higher volumes and improved efficiency, despite lower sales realization from metal prices."

He further added, "Going forward, we remain focused on value addition, sustainability, and expanding our production capacities to ensure long-term growth and value creation for all stakeholders."

The company's strong performance and strategic investment plans reflect its commitment to growth and sustainability in the aluminium sector. As global aluminium demand recovers, NALCO appears well-positioned to capitalize on market opportunities while focusing on operational efficiency and expansion.