Hindalco reports strong Q2 FY26 earnings, boosts capex and renewable energy

Hindalco Industries reported a 6% year-on-year increase in consolidated business segment EBITDA to INR9,104 crores for Q2 FY26, with net profit after tax rising 21% to INR4,741 crores. Novelis recorded shipments of 941 Kt, with adjusted EBITDA of $476 million, or $506 per ton, excluding a $54 million tariff impact. The company targets a $125 million run rate for cost efficiency initiatives.

The India business segment saw a 15% year-on-year EBITDA increase to INR5,419 crores and a 7% rise in net profit after tax to INR3,059 crores. Upstream Aluminium shipments grew 4% year-on-year, contributing to a 22% increase in quarterly EBITDA to INR4,524 crores. Downstream Aluminium EBITDA surged 69% year-on-year to INR261 crores, reaching an all-time high of $265 per ton, driven by higher value additions and premiumization. Copper metal shipments were 113 Kt, with CCR volumes up 8% at 97 Kt.

Hindalco is accelerating its renewable energy initiatives, aiming for 522 MW by the end of FY26. Total capital expenditures increased 23% year-on-year to INR11,330 crores, primarily for capacity expansions. The company reiterated its commitment to maintaining consolidated net leverage below 2.0x, despite increased project costs for Bay Minette to approximately $5 billion.