Hindalco Q2 PAT reaches ₹7,533 crore, up 59% year on year

Hindalco Industries Ltd reported consolidated profit after tax (PAT) of ₹7,533 crore in the second quarter of financial year 2027 (Q2 FY27), up 59% from Q2 FY26, as business segment earnings before interest, tax, depreciation and amortisation (EBITDA) rose 52% to ₹13,869 crore. Revenue increased 39% to ₹91,708 crore, with both India operations and Novelis contributing.

How did Hindalco’s consolidated Q2 FY27 results change?

Hindalco increased revenue, business segment EBITDA and PAT both year on year and sequentially in Q2 FY27. Revenue rose by ₹25,650 crore from ₹66,058 crore in Q2 FY26, while business segment EBITDA increased by ₹4,765 crore from ₹9,104 crore. PAT rose by ₹2,792 crore from ₹4,741 crore, with the presentation attributing the increase to operating performance and Novelis Oswego recovery.

Compared with Q1 FY27, revenue increased from ₹84,825 crore to ₹91,708 crore and PAT rose from ₹7,013 crore to ₹7,533 crore. Business segment EBITDA increased from ₹13,480 crore to ₹13,869 crore, although profit before exceptional items declined from ₹11,692 crore in Q1 FY27 to ₹10,310 crore in Q2 FY27.

Which India businesses drove Hindalco’s earnings growth?

Hindalco’s India businesses generated business segment EBITDA of ₹9,011 crore in Q2 FY27, up 66% from ₹5,419 crore in Q2 FY26. Revenue from these businesses rose 42% to ₹36,123 crore, while PAT increased 91% to ₹5,852 crore. Hindalco said the PAT increase was aided by its transition to the new tax regime from April 1, 2026, reducing the effective tax rate to 25% from 29%.

Aluminium upstream remained the largest India earnings contributor, with EBITDA rising 55% to ₹7,009 crore on shipments that increased 1% to 345 kilotonnes (Kt). Copper delivered the fastest EBITDA growth, rising 164% to ₹1,673 crore as shipments increased 2% to 116 Kt. Aluminium downstream EBITDA rose 26% to ₹329 crore, while shipments increased 6% to 119 Kt.

How did Novelis contribute to Hindalco’s Q2 FY27 earnings?

Novelis contributed ₹4,858 crore of business segment EBITDA in Q2 FY27, up 32% from ₹3,685 crore a year earlier, while revenue rose 37% to ₹55,585 crore. Its PAT increased 7% to ₹1,787 crore. Hindalco said favourable Indian rupee to US dollar exchange-rate movements helped reported EBITDA growth, which was 20% in US dollar terms.

Novelis reported adjusted EBITDA of $508 million under US generally accepted accounting principles, up 20% from $422 million in Q2 FY26, while adjusted EBITDA per tonne rose 23% to $553. Total shipments declined 2% to 919 Kt because higher beverage-packaging and aerospace shipments were offset by lower automotive and specialty-product volumes. Improved scrap spreads, higher recycling and $39 million of Oswego insurance recoveries also supported EBITDA.

Why did Hindalco’s non-LME EBITDA rise despite lower LME prices?

Hindalco’s non-London Metal Exchange (non-LME) linked EBITDA reached ₹6,860 crore in Q2 FY27, up 50% year on year and 13% sequentially, despite a 10% decline in London Metal Exchange (LME) prices. Hindalco defines non-LME businesses as Novelis, copper and aluminium downstream, whose earnings have low correlation with the LME.

The measure rose from ₹3,930 crore in Q3 FY26 to ₹5,364 crore in Q4 FY26 and ₹6,091 crore in Q1 FY27 before reaching ₹6,860 crore in Q2 FY27. Hindalco attributed the Q2 result to Novelis recovery, operational performance in copper and product innovation in aluminium downstream. The company’s industry data also estimated Indian aluminium demand at 1,735 Kt in Q2 FY27, up 6% year on year, while the copper market declined 3% to 388 Kt.

What changed in Hindalco’s cash flow and debt position?

Hindalco’s net debt was ₹80,435 crore on September 30, 2026, compared with ₹64,841 crore on March 31, 2026. The period included capital expenditure of ₹20,719 crore, up 83% year on year, and cash flow from operations of ₹23,319 crore, up 57%. Net cash inflow from operations was ₹10,231 crore, up 14%, despite higher working capital linked to higher metal prices.

Net debt to EBITDA declined to 1.80 times in September 2026 from 1.95 times in June 2026, but was above 1.23 times in September 2025. The cash-flow bridge included a ₹2,015 crore net Oswego impact after insurance recovery and ₹3,091 crore of other items, primarily dividend payments and non-cash currency translation differences. Return on capital employed was 24% in September 2026, compared with 23% in June 2026.

Conclusion

Hindalco’s Q2 FY27 performance combined 59% PAT growth to ₹7,533 crore with a 52% increase in business segment EBITDA to ₹13,869 crore. India businesses supplied ₹9,011 crore of EBITDA, led by aluminium upstream and copper, while Novelis contributed ₹4,858 crore despite a 2% decline in shipments.

The next disclosed matter to watch is execution of strategic growth-project capital expenditure, which totalled ₹20,719 crore during the period, and its effect on net debt of ₹80,435 crore at September 30, 2026. Hindalco also identified Novelis recovery, copper operations and aluminium-downstream product innovation as drivers of its ₹6,860 crore non-LME EBITDA result.