Hindalco India Ops Hit Record Profit, Novelis Restarts in Focus

Hindalco Industries reported its highest-ever revenue and profit for India operations in the March quarter. The India business delivered record results across the aluminium and copper segments. Consolidated revenue and Ebitda also reached all-time highs for the fiscal year. Novelis, the global rolled-products arm, faced operational challenges. Management confirmed plant restarts are on schedule.

Why the Record Numbers Matter Now

The headline record is straightforward. The deeper read involves the commodity cycle and supply-demand mechanics behind the numbers. Global aluminium supply is tightening. Chinese producers face capacity curbs from environmental policy and power rationing. European smelters struggle with volatile energy costs. Hindalco’s India smelters benefit from relatively stable coal-based power, giving a cost advantage that widens when global energy prices spike. Copper demand is supported by India’s infrastructure buildout, power transmission, and renewable energy projects. Both metals have seen rising domestic prices, lifting Hindalco’s realization per tonne. The question for traders is whether this margin environment persists into the second half of the fiscal year.

Aluminium and Copper: The Dual Engine for Earnings

Hindalco’s India segment is unique in holding strong positions in both aluminium and copper. Aluminium contributes the bulk of Ebitda. Copper adds diversification through continuous cast rod and cathode production, benefiting from rising wire and cable demand. The company’s upstream integration – from bauxite mining to alumina refining to smelting – insulates it from intermediate price swings. Large global aluminium producers, especially in China, are facing capacity curbs. Hindalco, with its India-based smelters, is not directly subject to those curbs and can capture the price uplift. The copper side, while more exposed to imported concentrate, remains a steady cash-flow contributor.