NALCO Navigates Q3 FY25-26 with Steady Performance and Strategic Vision

National Aluminium Company Limited (NALCO), a Navratna CPSE and a global leader in low-cost bauxite and alumina production, reported a resilient performance for the third quarter of fiscal year 2025-26. The company demonstrated stability in key financial metrics amidst a dynamic market environment, reinforcing its integrated operational strengths. For Q3 FY25-26, NALCO recorded Net Sales of Rs 4,700 crore, with Revenue from Operations standing at Rs 4,731 crore, marking a 1% increase compared to the corresponding period last year (CPLY). The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA), excluding exceptional items, was Rs 2,374 crore, a slight dip of 2% from CPLY. Profit After Tax (PAT) showed a marginal increase of 1% to Rs 1,601 crore, reflecting the company's ability to maintain profitability.

The nine-month performance further underscores NALCO's robust trajectory. For the period ending Q3 FY25-26, Net Sales reached Rs 12,748 crore, an impressive 11% growth over CPLY. Revenue from Operations also grew by 11% to Rs 12,830 crore. Total Income for the nine months stood at Rs 13,299 crore, up 13% from CPLY. EBIDTA saw a significant 20% rise to Rs 6,066 crore, while Profit Before Tax (PBT) surged by 25% to Rs 5,456 crore. The PAT for the nine-month period demonstrated a strong 26% increase, reaching Rs 4,098 crore. These figures highlight NALCO's consistent operational efficiency and strategic initiatives contributing to sustained financial health.

Operational Excellence and Production Milestones

NALCO's physical performance in Q3 FY25-26 showcased a mixed but generally positive trend. Bauxite production for the quarter was 1,997 thousand tonnes, a slight decrease of 0.99% from CPLY. However, Alumina Hydrate production increased by 3.99% to 574 thousand tonnes, and Metal production rose by 4.35% to 120 thousand tonnes. Thermal Power generation also saw a healthy increase of 3.62% to 1,776 MU. The company's sales performance reflected strong domestic demand, with Alumina Domestic sales skyrocketing by 360.47% to 39.6 thousand tonnes, while Alumina Export sales experienced a minor dip of 0.82% to 363.3 thousand tonnes. Metal Domestic sales grew by 12.12% to 119.3 thousand tonnes, and Metal Export sales stood at 7.1 thousand tonnes.

For the nine months ending Q3 FY25-26, NALCO achieved several significant production and sales milestones. Bauxite Transportation reached 56.60 lakh tonnes, up 5.62% from CPLY. Alumina Hydrate production increased by 15.83% to 17.27 lakh tonnes, and Aluminium Cast Metal production grew by 3.51% to 3.54 lakh tonnes. Net Power Generation also saw a 6.31% increase to 5,205 MU. These achievements represent the highest-ever production figures for Bauxite Transportation, Alumina Hydrate, Aluminium cast metal, and Net power generation. On the sales front, Alumina/Hydrate Sale surged by 45.32% to 11.03 lakh tonnes, marking a highest-ever sale. Domestic Metal Sale increased by 5.18% to 3.45 lakh tonnes, contributing to a total metal sale of 3.52 lakh tonnes, up 5.07% from CPLY, also a highest-ever record for Chemical, Domestic & Total metal sales.

Here is a financial summary of NALCO's performance:

Strategic Growth and Market Dynamics

NALCO's integrated business model, encompassing bauxite mining, alumina refining, aluminum smelting, and captive power generation, positions it uniquely in the global aluminum industry. The company is actively pursuing strategic expansions to enhance its capacities and secure raw material linkages, aiming to unlock higher productivity and drive cost efficiency. Major projects include the expansion of Pottangi Bauxite mines by 3.5 MTPA, expected to open by May 2026, and the 5th Stream Alumina Refinery expansion by 1 MTPA, likely commissioning by June 2026. Further long-term plans involve an Aluminium Smelter expansion by 0.5 MTPA, anticipated by August 2030, and a Captive Power Plant expansion of 1,080 MW, slated for commissioning by June 2031. These projects are critical for protecting the company's bottom line against LME downswings and providing scope for value-added products like extrusions.

The global aluminum market is influenced by a complex interplay of factors. LME Aluminium prices are projected to average around US$ 2670/MT for calendar year 2026. Geopolitical crises, rising international tensions, LME/CME/SHFE stock movements, and shifts in fund manager portfolios are key drivers. Monetary policy decisions by the US Federal Reserve and the movement of the US dollar also play a significant role. Supply-side constraints, including production caps in China, smelter curtailments in Europe and Africa, and the EU's Carbon Border Adjustment Mechanism (CBAM) roll-out in 2026, are expected to influence trader behavior. On the demand side, growth in industrial sectors such as electric vehicles (EVs), renewables, grid infrastructure, solar energy, packaging, and construction continues to be a strong positive.

India's economic landscape provides a robust backdrop for NALCO's growth. The country's GDP growth rate is projected at 6.5% for 2024-25, 7.4% for 2025-26, and 7.2% for 2026-27. Indian aluminum consumption has grown at a Compound Annual Growth Rate (CAGR) of approximately 9% over the last five years, with demand expected to continue growing at a CAGR of 6.3% to 7.2% until 2030. Key consumption sectors include electrical (48%), transportation & automobile (15%), building & construction (13%), and consumer durables (7%). This strong domestic demand, coupled with NALCO's strategic expansions, positions the company for sustained growth.

Commitment to Sustainability and Community

Beyond financial and operational performance, NALCO demonstrates a strong commitment to corporate social responsibility (CSR) and sustainable development. For FY 2025-26, the company has allocated a CSR budget of Rs 91.19 crore. Rural Development receives the largest share at 44%, followed by Health Care at 19%, Heritage & Culture at 8%, and Water & Sanitation at 7%. Education, Livelihood, Model Villages, and Employment-linked Training also receive significant allocations. NALCO's initiatives include the 'Indradhanush' program, sponsoring 1,500 students in residential schools, and 'NALCO Ki Ladli', providing financial assistance to 1,100 meritorious girl students from BPL families. In healthcare, the company operates 8 Mobile Health Units, treating over 100,000 patients annually across 250 villages, and an OPD facility at Angul serving 18,000 patients annually. Peripheral development efforts focus on road, water facilities, school systems, infrastructure, drainage, and community centers, alongside model village development.

NALCO's Q3 FY25-26 performance reflects a quarter of disciplined execution and strategic clarity. The company's consistent financial results, coupled with its ambitious expansion projects and strong commitment to sustainability, underscore its resilience and forward-looking approach. With a clear roadmap for capacity enhancement, cost efficiency, and market leadership, NALCO is well-positioned to capitalize on both domestic and global opportunities in the aluminum sector, reinforcing investor confidence in its long-term value creation potential.