As of September 30, the company's consolidated net profit for the second fiscal quarter reached 75.32 billion rupees (approximately 800 million US dollars), up 59% year-on-year. The main contributors to this growth were the increase in aluminum and copper prices and the rise in production.
During the same period, the company's operating income increased by 39% to 917.08 billion rupees, indicating that the strengthening of metal prices and the expansion of business scale jointly contributed to the improvement in performance.
During the reporting period, aluminum prices rose by approximately 23%, mainly supported by supply constraints in China and strong demand in the clean energy and infrastructure sectors.
However, aluminum prices have experienced a correction after rising for four consecutive quarters, dropping by 10% compared to the previous quarter. Copper prices have performed more strongly, with the spot price rising by approximately 44% year-on-year. Rising metal prices typically improve the profit margins of mining companies, and Hindalco's aluminum and copper businesses have thus benefited significantly.
The company's upstream aluminum business revenue increased by 32.6%, and the copper business revenue rose by 46.8%, both driven by rising metal prices and increased sales volume. The Novelis business, which accounts for nearly 60% of the company's revenue, saw a 37% increase in revenue, becoming an important source of overall performance growth.
Analysts predict that the profit of Novelis, which was affected by the fire at the Oswego plant in the United States, is lower than previously expected, and the impact of US tariffs is also less severe than in the second quarter of 2026 fiscal year.
In addition, the company recognized 2.84 billion rupees in insurance compensation income for the current quarter to cover the losses caused by the US factory fire; in the same period last year, the company had recorded a one-time expense of 1.82 billion rupees due to this accident.
Nevertheless, cost pressure remains significant, with total expenditures increasing by 37% to 823.51 billion rupees, with a 38.5% increase in raw material consumption costs. Overall, rising metal prices and increased production have driven rapid profit growth, but rising raw material costs remain an important variable for future profit performance.
