Detailed Narrative
Q4 FY26 Performance Overview and FY26 Highlights
National Aluminium achieved its best-ever physical and financial performance in FY26. Revenue from operations grew 6.28% year-on-year to ₹17,843 crores, up from ₹16,788 crores in FY25. EBITDA increased by 8.72% to ₹8,613 crores, and Profit After Tax (PAT) rose 9.22% to ₹5,816 crores. This robust performance was attributed to dedicated efforts from employees, stakeholder support, and best-ever physical output across all key operational areas.
Production and Sales Volume Growth
The company reported strong volume growth in FY26, with bauxite production increasing by 6% and alumina/calcined alumina production by 11.5%. Cast metal production saw a 2.61% growth. Sales performance was also robust, with alumina sales growing by 30.74% and aluminium metal sales by 2.8%. For FY27, NALCO targets 25 lakh tons of alumina production and sales, and 4.73 lakh tons of metal production, slightly higher than the 4.71 lakh tons in FY26.
Alumina and Aluminium Realizations
Alumina prices experienced a significant decline in FY26, with average realization falling from $580/ton in FY25 to $370/ton in FY26, resulting in a negative impact of ₹2,659 crores. Q4 FY26 alumina realization was $348/ton, with Q1 FY27 expected to average around $320/ton. For FY27, the company anticipates average alumina prices to be in the range of $300-$310/ton. Aluminium metal realization, however, increased from an average of $2,550/ton in FY25 to $2,700/ton in FY26, with Q4 FY26 at $2,767/ton. Current metal prices are around ₹3,500-₹3,600, but are expected to normalize to ₹3,000-₹3,100 on average for FY27.
Capital Expenditure Plans and Strategic Projects
NALCO incurred a capex of ₹2,000 crores in FY26, exceeding its target of ₹1,700 crores. For FY27, the capex is projected to be around ₹4,000 crores, peaking at ₹8,000-₹10,000 crores in FY28. The total investment for the new aluminium smelter (0.5 million tons capacity) and associated power plant is estimated at ₹23,000-₹24,000 crores, with the smelter alone costing ₹17,000-₹18,000 crores. The 5th stream refinery commissioning is set to begin in June 2026, aiming for an additional 2 lakh tons of alumina production. The company is also adding a new 60,000-ton wire rod mill and an MI annealing furnace to enhance value-added product offerings.
Raw Material Costs and Operational Efficiency
The company improved its techno-economic figures, leading to savings in caustic soda, CP Coke, and furnace oil consumption. However, raw material prices are rising, with caustic soda increasing from an FY26 average of ₹42,000/ton to an expected ₹45,000/ton in Q1 FY27. CP Coke is projected to rise from ₹53,000/ton to ₹57,000/ton, and HFO from ₹46,000/ton to ₹70,000/ton. Captive coal production is targeted at 4.8 million tons for FY27, up from 4 million tons in FY26, covering a significant portion of the total requirement.
Joint Ventures and Manpower Management
NALCO has discontinued its Utkarsh JV with Mishra Dhatu Nigam due to unfavorable IRR and market conditions. A new 50-50 JV is being formed with Neyveli Lignite Corporation for a power plant, ensuring coal security. The GNAL JV, which incurred a loss of ₹38 crores in FY26 (down from ₹135 crores in FY25), is expected to turn profitable in FY27. Employee costs decreased by ₹65 crores in FY26 due to retirements of higher-paid staff and recruitment of new employees at lower pay scales, a trend expected to continue despite a 10-15% pay commission impact from January 2027.