National Aluminium Company Limited

NALCO delivered a robust financial performance in Q1 FY26, reporting a 33% year-on-year growth in revenue and a significant 77% increase in Profit After Tax (PAT) compared to the corresponding quarter of the previous year. This strong start follows a record-breaking performance in the last financial year. The company also announced a final dividend of ₹2.50 per share, reflecting its commitment to shareholder returns.

The company achieved notable growth in its operational metrics, with bauxite production increasing by 6.6% and alumina hydrate production seeing a substantial 35% jump in Q1 FY26. Metal production grew by 3%, and power generation by 6%. Sales volumes also showed strength, with metal sales growing by 9% and alumina sales experiencing a 'significant jump'. NALCO recorded its highest-ever Q1 domestic sales for both metal and alumina, indicating strong domestic demand.

NALCO continues to be recognized as a global leader in producing bauxite and alumina at the lowest cost. The cost of alumina production is maintained at ₹20,000-₹21,000 per ton, while aluminium production costs range from ₹1,55,000-₹1,60,000 per ton. However, 'other expenses' increased due to a ₹75 crore Renewable Purchase Obligation (RPO) for FY25-26 and a ₹10-12 crore rise in coal transportation costs. The company's zero-debt status provides significant financial flexibility for its ambitious expansion plans.

Several key expansion projects are progressing. The 5th stream alumina refinery expansion, which will add 1 million tons to capacity, is 74-75% physically complete, targeting mechanical completion by March 2026 and production by June 2026, with 5 lakh tons expected in FY27. The Pottangi bauxite mines are slated to begin operations between February and June 2026, adding 3.5 million tons capacity. For the brownfield smelter expansion, the DPR is expected to be ready in 7-8 months, with land acquisition formalities completing in 4-6 months, and tendering to commence next financial year.

To enhance profitability and reduce commodity price exposure, NALCO is strategically investing in value-added products. Plans include a new wire rod mill, costing ₹200-300 crores for a 1 lakh ton capacity, and a foil plant, estimated at ₹50-60 crores for a 1,000-ton monthly capacity, both expected within 2-3 years. Concurrently, the company is expanding its green energy footprint, with a 7 MW solar power plant under tendering (1-1.5 years) and a 10 MW wind power plant ready for commissioning (1-2 months), aiming for 15-20% green power in its portfolio by 2030.

The global GDP is projected to grow at 3% in 2025 and 3.1% in 2026 by the IMF, while India's GDP is expected at 6.5% for the current year and 6.7% for the next. Domestic aluminium consumption is forecasted to reach 8.5 billion tons by 2030, driven by the electrical (48% share), transportation, and construction sectors. LME prices remain subject to volatility from US tariff developments, rising oil prices, and the US dollar index, with Q1 FY26 alumina realization averaging $416.