Nalco stock zooms 29% in 1 month, hits new peak in subdued market

The stock price of National Aluminium hit a new high at ₹359.65 on Tuesday and has more-than-doubled or skyrocketed 157 per cent from its 52-week low of ₹140 touched on April 7, 2025.

National Aluminium Company (Nalco) share price today

 

Share price of National Aluminium Company (Nalco) hit a new peak at ₹359.65, as the stock rallied 3 per cent on the BSE in Tuesday’s intra-day trade on expectations of healthy earnings. In comparison, the BSE Sensex was down 0.05 per cent at 83,832 at 10:40 AM.

 

In the past one month, the stock price of the public sector undertaking company has zoomed 29 per cent, as compared to 1.7 per cent decline in the BSE Sensex and 8 per cent rise in the BSE Metal index. It has more-than-doubled or skyrocketed 157 per cent from its 52-week low of ₹140 touched on April 7, 2025.

 

Why Nalco's share price more-than-doubled in 9 months?

 

Nalco operates captive high-quality bauxite mines, which meet 100 per cent of its alumina requirement for manufacturing aluminium. 

 

The company currently operates two captive bauxite mines and one captive coal mine while one bauxite mine is likely to commence operations by Q2FY27. All of these mines are allotted by the government and have valid mining licences and related statutory clearances, giving the company a competitive advantage in the highly regulated mining industry, wherein private miners could face stoppage of operations due to the lack of a valid licence or clearance, or having to pay a high premium.  Nalco’s licences for bauxite mines will remain valid up to 2029-73 while those for coal mines shall remain valid up to 2051.

 

The low production cost for alumina, on account of its high-quality captive bauxite mine, provides Nalco the flexibility to sell additional alumina as and when aluminium prices are less remunerative to sustain full production capacity, so as to maximise profitability. Overall, the alumina segment provides Nalco the cushion to support margins even during downturns, according to India Ratings and Research (Ind-Ra).

 

Meanwhile, during the first half (April to September) of the financial year 2025-26 (H1FY26), Nalco continued its strong performance with a 50.15 per cent growth in net profit, soaring to ₹2,497 crore as against ₹1,663 crore for the corresponding period of the previous year.

 

On the sales front, Nalco achieved its highest-ever alumina sales of 699,913 MT in H1FY26, surpassing the previous best of 656,480 MT achieved in FY2013–14. The company also recorded the highest-ever cumulative domestic metal sales of 225,675 MT in H1FY26.

 

The management said the strong performance was driven by enhanced operational efficiencies, cost optimization measures, and supportive market conditions, including a recovery in aluminium prices in the international market and steady domestic demand growth from the infrastructure and automotive sectors.

 

In FY26, the margins are likely to remain healthy, given that the coal supply from captive coal mines shall improve further, and the alumina and aluminium realisations are likely to remain elevated in FY26 on supply concerns from the Chinese market. Ind-Ra expects the EBITDA margins to remain healthy at 25 per cent-30 per cent over FY26-FY27, supported by increased backward integration and improved cost efficiencies.  CATCH STOCK MARKET LIVE UPDATES TODAY

Nalco's Q3 results preview

 

In the October to December quarter (Q3FY26), aluminum prices rallied and grew by 10 per cent/8 per cent YoY/QoQ. The rally in aluminium prices was driven by supply constraints and a favorable macro backdrop amidst Fed rate cuts in the US. The gains from the strong pricing momentum, however, will be offset by company-specific issues such as fire at Hindalco Novelli’s Oswego operations and lower Alumina prices and volumes at Nalco, which will lead to sequential EBITDA decline for both companies, Axis Securities said in the Q3 earnings preview.

 

Kotak Institutional Equities said they build in alumina sales at 300,000 tons (-20 per cent YoY, -24 per cent QoQ) and aluminum sales at 115,000 tons (+8.1 per cent YoY, +2.4 per cent QoQ) during Q3FY26. The brokerage firm estimates Alumina EBITDA at ₹410 crore (-70 per cent YoY, -41 per cent QoQ) and aluminum EBITDA at ₹1,500 crore (+54 per cent YoY, +22 per cent QoQ) mainly led by diverging price movements in alumina and aluminium during the quarter.  ================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.