Hindalco Q2 FY26 Investor Update: Strong Standalone Profitability and Strategic Capacity Expansion

Hindalco Ltd. has reported a robust financial performance for the second quarter Net Profit: The company posted a 20% year-on-year (YoY) increase in standalone net profit, reaching ₹2,266 crore, compared to ₹1,891 crore in the corresponding period last year. Revenue from Operations: Revenue grew by 11.3% YoY, totaling ₹24,780 crore, up from ₹22,262 crore. EBITDA: Standalone Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) surged by 36% YoY to ₹3,740 crore from ₹2,749 crore. Margin Expansion: This operational leverage resulted in a notable expansion of standalone EBITDA margins to 15.0%, a 270-basis-point improvement from 12.3% in Q2 FY25. Segmental Performance Analysis The company's core Aluminium business was the primary growth engine, delivering results that surpassed market consensus. Aluminium Business: EBITDA for the Aluminium segment stood at ₹4,785 crore, exceeding the CNBC-TV18 poll estimate of ₹4,680 crore. Copper Business: The Copper segment's EBITDA was ₹634 crore, slightly missing the consensus estimate of ₹670 crore. Strategic Growth Initiative: Major CapEx Announced In a significant strategic development, Hindalco announced a major brownfield capacity expansion at its Aditya Aluminum unit, signaling strong confidence in long-term demand. Expansion Quantum: The company will add 193KT of new capacity to the existing 370KT, which is currently operating at 100% utilization. Capital Outlay: The proposed expansion involves a total investment of ₹10,225 crore. Funding and Timeline: This investment will be financed through a mix of internal accruals and debt, with the new capacity projected to come on stream by the financial year 2029. Earlier in the week, Novelis's results raised investor concerns due to a reported increase in net debt to its highest level in 21 quarters, coupled with cost overruns associated with its ongoing capacity expansion projects.