Hindalco’s June quarter profit up by 30%

Mumbai, August 12, 2025 — Hindalco’s net profit consolidated jumped 30% year-on-year to ₹4,004 crore from ₹3,074 crore in Q1 FY25. The revenue of the company increased by 13% year-on-year at ₹64,232 crore. Consolidated EBITDA grew around 9% year-on-year at ₹8,673 crore.

In domestic business, the upstream aluminium EBITDA increased by 17% to ₹4,080 crore, with the industry-high margin of 44%. The downstream aluminium business recorded growth, with the EBITDA more than doubling to ₹229 crore. The copper business of the company remained stable at an EBITDA of ₹673 crore. Additionally, Hindalco’s net debt-to-EBITDA improved to 1.02x, from 1.24x YoY, further consolidating its balance sheet.

Novelis’ profit down by 36%

Even though there was robust growth in local markets, Hindalco’s American unit, Novelis, also experienced stiff headwinds. Novelis saw net income plunge 36% year on year to $96 million. Increased scrap cost, rising tariffs, and higher inflation caused pressures on profitability. Adjusted EBITDA decreased by 17%, and EBITDA per ton declined 18%.

While Novelis’ shipments went up slightly by 1% to 963 kilotonnes, its beverage can volumes went up by 8%, which helped ease the pain to some extent. The management sees more than $100 million cost saving being reached by the end of FY26, with ongoing margin squeeze in H1, followed by a possible rebound in H2.

Hindalco’s share responded negatively to Novelis’ disappointing results and closed at ₹666.00 down ₹6.85 or 1.02% for the day. Over the past year, the stock has traded between a 52-week high of ₹772.65 and a 52-week low of ₹546.45. The latest quarterly dividend stands at ₹1.25 per share. The shares fell, indicating concerns over the performance of the subsidiary. In spite of this, the company’s local performance and strategic moves in India continue to present long-term growth opportunities.

Domestic performance of Hindalco seems robust with high margin growth and reduced leverage, while Novelis continues to struggle with macro pressures. Focus is on operational efficiencies with H2 FY26 recovery expected.

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