NALCO , a Government of India Enterprise, has been fined Rs 15.03 lakh by the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) for non-compliance with SEBI regulations regarding board and committee composition. The company is actively seeking a waiver of these penalties, citing its unique status as a Central Public Sector Enterprise (CPSE).

Fine Details and Non-Compliance

NALCO received identical fines from both BSE and NSE, each amounting to Rs 7,51,660 (including GST). The penalties were imposed for non-compliance with Regulations 17(1) and 18(1) of SEBI LODR Regulations 2015 for the quarter ended June 30, 2025. These regulations pertain to the composition of the board of directors and audit committee, respectively.

NALCO's Response and Actions Taken

In response to the fines, NALCO has taken several steps:

1. Communication with Government: The company informed the Ministry of Mines, its administrative ministry, about the fines on September 8, 2025, requesting expedited appointment of the required number of Independent Directors.

2. Clarification to Stock Exchanges: NALCO clarified to both BSE and NSE that as a CPSE, the authority for appointing directors rests with the President of India, and the company has no control over these appointments.

3. Board Meeting: The matter was discussed in NALCO's 359th Board meeting on September 25, 2025. The Board advised the company to communicate with the exchanges, explaining its position as a CPSE.

4. Waiver Application: A waiver application was submitted to BSE on September 18, 2025, for the committee composition non-compliance. The company plans to apply for a waiver of the board composition penalty once compliance is achieved.

Key Points from NALCO's Statement

NALCO's Stance

NALCO emphasizes that the appointment of Independent Directors is beyond its control, as all directors are appointed by the President of India. The company has been continuously engaging with the Administrative Ministry to expedite the appointment of the required number of Independent Directors to ensure compliance with both the Companies Act, 2013, and SEBI LODR Regulations, 2015.

The company has requested that the non-compliance be condoned and the imposed fines be waived, considering its status as a government enterprise and the ongoing efforts to rectify the situation.

As NALCO works towards resolving this regulatory issue, investors and market watchers will be keenly observing how this situation unfolds, particularly given the company's unique position as a government-controlled entity navigating stock market regulations.

NALCO , a Navratna CPSE under the Ministry of Mines, Government of India, held its 44th Annual General Meeting (AGM) in Bhubaneswar, showcasing a year of unprecedented success and outlining a future-focused strategy.

Record-Breaking Financial Performance

NALCO reported exceptional financial results:

• Highest-ever revenue from operations at ₹16,788.00 crores, a 28% increase year-over-year
• Record net profit of ₹5,325.00 crores, up 158% from the previous year
• Earnings per Share rose to ₹28.99 from ₹11.22
• Total dividend payout of ₹1,928.47 crore, representing a 210% dividend

Operational Excellence

The company achieved several operational milestones:

• Highest-ever Bauxite excavation of 76.48 lakh tonnes
• Alumina hydrate production of 20.76 lakh tonnes
• Aluminium production reaching 4.60 lakh tonnes
• Record domestic metal sale of 4,54,600 MT
• Captive Power Plant's highest-ever net generation of 6,641 MU

Future Strategy and Growth Initiatives

Chairman-cum-Managing Director Brijendra Pratap Singh outlined NALCO's strategic focus areas:

1. Expansion Projects: The 5th Stream (1 MTPA) is 75% complete, with commissioning expected in early FY 2026-27. The Pottangi Bauxite Mines, supporting this expansion, has secured all clearances.

2. Resource Security: The Utkal D&E Coal Mines supplied 28.2 lakh tonnes, ensuring captive power security.

3. Capital Expenditure: NALCO invested ₹1,396.00 crore in CAPEX, emphasizing growth and modernization.

4. Digital Transformation: The company is migrating to SAP S/4 HANA and has launched several mobile applications to enhance stakeholder engagement.

5. Sustainability and CSR: NALCO spent ₹61.30 crore on CSR activities, focusing on education, healthcare, and community development.

6. Human Resource Development: The company provided 12,777 man-days of training and engaged 992 apprentices, representing 20% of its workforce.

Industry Outlook and NALCO's Position

Singh highlighted the robust growth potential in the Indian aluminium sector, projecting domestic demand to grow at a CAGR of 7.6% till 2030. This growth is expected to be driven by electric vehicle adoption, infrastructure development, and the renewable energy sector.

NALCO's integrated business model, strong raw material linkages, and focus on sustainability position it well to capitalize on these opportunities. The company aims to play a pivotal role in India's journey towards becoming an economic powerhouse, aligning with the aspirations of Aatmanirbhar Bharat and Viksit Bharat.

Challenges and Future Focus

While acknowledging the positive outlook, Singh also addressed challenges such as global price fluctuations, energy costs, and sustainability norms. He emphasized the need for accelerated technology adoption, cleaner energy transition, greater value addition, and enhanced resilience against global disruptions.

As NALCO looks to the future, it remains committed to leveraging its strengths, expanding its global reach, and enhancing efficiencies. The company's strategy balances immediate growth with sustainable value creation, focusing on brownfield expansions and forward/backward integration to maintain its leadership in the aluminium sector and contribute to India's industrial growth.

With its strong performance, strategic initiatives, and focus on innovation and sustainability, NALCO is well-positioned to navigate the evolving landscape of the global aluminium industry while playing a crucial role in India's economic development.