Hindalco Industries Q1 results: Net profit up 30% at ₹4,004 crore

50% US tariffs on aluminium exports may impact Novelis

Even as metals major Hindalco Industries posted a 30 per cent rise in net profit during the June quarter, the company warned that the 50 per cent tariff imposed on aluminium exports from all countries to the United States will impact Novelis, a Hindalco subsidiary. 

Novelis exports aluminium products from its Canadian facility. 

In a post results conference, Satish Pai, managing director (MD) and chief executive officer (CEO), Hindalco, said on Tuesday that while the demand for its products remained strong in India, the tariff imposed by the US could impact demand there. 

“The tariff has gone up from 25 to 50 per cent which will impact demand,” Pai said, adding that Hindalco’s own exports from India to Southeastern countries remain unaffected. 

 

The demand from American automobile manufacturers remained resilient but housing and aluminum can makers remained sluggish, he said. 

Novelis posted a net income of $96 million, down 36 per cent year-on-year (Y-o-Y) for the first quarter of FY26. 

The Q1FY26 adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) includes a net negative tariff impact of  $28 million.

 

But back home, beating analysts’ estimates, Hindalco on Tuesday posted a 30 per cent Y-o-Y rise in consolidated net profit to ₹4,004 crore for the June quarter of FY26. It was driven by robust aluminum operations in India and resilient shipments from 

subsidiary Novelis. 

Revenue climbed 13 per cent to ₹64,232 crore, while consolidated Ebitda rose 9 per cent to ₹8,673 crore. 

“We think the demand for aluminium and copper in India will keep rising as demand from the infrastructure and housing sectors is surging fast,” Pai said. 

The India aluminium upstream business delivered Ebitda of ₹4,080 crore, up 17 per cent, with industry-leading margins of 44 per cent.

 

Aluminum downstream posted a record ₹229 crore Ebitda, more than doubling from a year earlier, helped by higher value-added products. 

Copper Ebitda came in at ₹673 crore, broadly in line with guidance despite weaker treatment and refining charges. 

Novelis shipments increased 1 per cent to 963 kilo tonnes (KT), supported by an 8 per cent jump in beverage can volumes, even as adjusted Ebitda slipped 17 per cent to $416 million on higher scrap prices and tariffs. 

The company said cost-reduction initiatives are expected to deliver run-rate savings of over $100 million in FY26, ahead of the earlier guidance. 

Pai said Hindalco’s integrated business model, disciplined costs and strategic investments position it for sustained growth.

Projects under commissioning include the 170 KT Aditya FRP facility, aluminum AC fins, and a copper IGT plant. 

The company’s net debt-to-Ebitda ratio improved to 1.02x from 1.24x a year earlier. 

Hindalco maintained momentum after its record FY25 earnings, with the management citing operational efficiencies, an improved product mix, and progress on sustainability initiatives, such as waste recycling and climate action. 

The company said copper business delivered an Ebitda of ₹673 crore in Q1, in line with its guidance. It was backed by reliable operations, continued strong domestic sales and higher by-product realisations. 

“Despite headwinds, Novelis reported a 1 per cent increase in shipments, driven by record quarterly beverage can shipments, which registered a solid 8 per cent growth over the previous year quarter,” the company said in a statement. 

Hindalco shares closed flat at ₹666.95 per share on the BSE on Tuesday. 

Compiled by BS Research Bureau | Source: Company