Hindalco to acquire coal block owner EMMRL for long-term fuel security

Hindalco will acquire EMMRL for ₹48 lakh and take on ₹1,131 crore debt to secure coal for its aluminium operations; Q4 and FY25 earnings also hit record highs

Hindalco Industries Ltd, the metals flagship of the Aditya Birla Group, will acquire 100 per cent of EMIL Mines and Mineral Resources Ltd. (EMMRL), which holds the mining lease for the Bandha coal block in Madhya Pradesh.

 

The transaction is valued at ₹48 lakh, and Hindalco will assume ₹1,131 crore in debt. The acquisition aims to secure long-term coal supply for Hindalco’s aluminium smelting operations.

 

Strategic acquisition for coal security

 

The Bandha coal block has an estimated 197 million tonnes of mineable coal, with a 45-year life span. Located just 20 km from Hindalco’s Mahan power plant, the site allows for efficient transport via rail, road, or conveyor.

   

EMMRL is currently a subsidiary of Essel Mining and Industries Ltd. The acquisition is classified as a related-party transaction, but Hindalco has stated it will follow fair pricing norms.

 

The deal was approved by Hindalco’s board on May 20 and is expected to close within 6–9 months, pending regulatory approvals. EMMRL has had no turnover since 2020.

 

Q4 and FY25 earnings hit new highs

 

Hindalco announced the acquisition alongside strong Q4 FY25 and annual results:

 

Consolidated Q4 FY25

 

Net profit: ₹5,284 crore (up 66 per cent)

 

Revenue: ₹64,890 crore (up 16 per cent)

 

EBITDA: ₹10,296 crore (up 43 per cent)

 

Hindalco declared a 500% dividend for FY25 (₹5 per share), up from ₹3.5 per share in FY24.

 

Record FY25 annual performance

 

Net profit: ₹16,002 crore (up 58 per cent)

 

Revenue: ₹2.38 lakh crore (up 10 per cent)

 

EBITDA: ₹35,496 crore (up 38 per cent)

 

Aluminium segment:

 

Upstream EBITDA: ₹16,262 crore (up 78 per cent)

 

Downstream EBITDA: ₹633 crore (up 16 per cent)

 

Copper segment:

 

Highest-ever EBITDA: ₹3,025 crore

 

US subsidiary Novelis:

 

FY profit: $683 million (up 14 per cent)

 

Q4 profit: $294 million (up 77 per cent)

 

Hindalco also delivered 10,000 aluminium battery enclosures to Mahindra in FY25, bolstering its position in the EV value chain.

 

As of March 31, 2025, the company’s net debt-to-EBITDA ratio improved to 1.06x, down from 1.21x last year, signalling stronger financial stability.