NALCO standalone profit rises 28% to Rs 1,835 crore in September

National Aluminium Company Limited reported standalone profit of Rs 1,835.09 crore for the quarter ended September 30, 2026, up 28% from Rs 1,433.17 crore a year earlier, as aluminium segment profit rose to Rs 2,058.15 crore from Rs 1,189.37 crore and outweighed lower chemicals earnings.

What drove NALCO’s September-quarter profit increase?

NALCO’s profit increase was driven by revenue growth and a higher aluminium contribution. Revenue from operations rose 26% year on year to Rs 5,419.44 crore in the September 2026 quarter from Rs 4,292.34 crore, while total income, including Rs 248.08 crore of other income, increased to Rs 5,667.52 crore from Rs 4,443.81 crore.

Expenses also rose, but by less than income. Total expenses were Rs 3,196.18 crore, compared with Rs 2,548.58 crore a year earlier, led by power and fuel costs of Rs 1,065.95 crore and raw-material consumption of Rs 808.36 crore. Profit before tax consequently increased 30% to Rs 2,471.34 crore from Rs 1,895.23 crore, before tax expense of Rs 636.25 crore.

Profit was lower sequentially than Rs 2,002.38 crore in the quarter ended June 30, 2026, despite revenue from operations increasing by Rs 117.06 crore. Total expenses increased by Rs 409.40 crore quarter on quarter, while inventory changes moved to an expense of Rs 57.27 crore from a Rs 129.77 crore reduction in the June quarter.

How did NALCO’s aluminium and chemicals segments perform?

NALCO’s aluminium segment provided the main improvement in earnings. Aluminium segment revenue increased to Rs 4,164.54 crore in the September quarter from Rs 2,880.35 crore a year earlier, while segment profit before interest and tax rose 73% to Rs 2,058.15 crore from Rs 1,189.37 crore.

Chemicals moved in the opposite direction. Chemicals revenue fell 8% year on year to Rs 1,692.57 crore from Rs 1,834.05 crore, and segment profit before interest and tax declined to Rs 281.90 crore from Rs 623.68 crore. The Rs 868.78 crore increase in aluminium segment profit was more than the Rs 341.78 crore decline in chemicals segment profit.

The sequential comparison showed a different pattern. Aluminium revenue was nearly unchanged from Rs 4,188.82 crore in June 2026, but its segment profit fell from Rs 2,325.70 crore. Chemicals revenue rose from Rs 1,569.93 crore and segment profit increased from Rs 270.92 crore in June, although both chemicals revenue and profit remained below September 2025 levels.

What did NALCO report for the first half and cash flow?

NALCO reported first-half standalone profit of Rs 3,837.47 crore for the six months ended September 30, 2026, up 54% from Rs 2,497.03 crore in the comparable 2025 period. Six-month revenue from operations increased 32% to Rs 10,721.82 crore from Rs 8,099.28 crore, and profit before tax rose to Rs 5,160.24 crore from Rs 3,324.50 crore.

Net cash flow from operating activities increased to Rs 4,371.39 crore in the first half from Rs 2,720.94 crore a year earlier. Cash generated from operations before taxes was Rs 5,389.60 crore, compared with Rs 3,358.52 crore, while income taxes paid were Rs 1,018.21 crore. Trade receivables decreased by Rs 200.25 crore, against a Rs 158.85 crore decrease in the prior-year period.

Cash deployment included Rs 3,741.00 crore used for investment in or redemption of bank term deposits and Rs 646.08 crore spent on property, plant and equipment, including capital advances. Capital work in progress was Rs 6,411.73 crore at September 30, 2026, compared with Rs 6,296.00 crore at March 31, while property, plant and equipment rose to Rs 6,976.76 crore from Rs 6,749.95 crore.

What changed in NALCO’s balance sheet and dividend plans?

NALCO’s total assets increased to Rs 30,531.30 crore at September 30, 2026 from Rs 26,803.45 crore at March 31, 2026. Bank balances other than cash equivalents increased to Rs 12,129.23 crore from Rs 8,254.29 crore, while current investments decreased to Rs 50.03 crore from Rs 292.93 crore.

Total equity rose to Rs 25,152.42 crore from Rs 21,862.76 crore, including other equity of Rs 24,234.10 crore at September 30. Total liabilities were Rs 5,378.88 crore, compared with Rs 4,940.69 crore at March 31, and current tax liabilities increased to Rs 207.11 crore from Rs 4.82 crore.

NALCO’s board approved an interim dividend of Rs 4.50 per equity share, equal to 90% of the Rs 5 face value, for financial year 2026-27 on November 2, 2026. The proposed payout is Rs 826.48 crore, with November 6, 2026 fixed as the record date. The company said payment would be made on or before December 1, 2026 to eligible shareholders.

What issue did NALCO’s auditors highlight?

NALCO has not recognised revenue from two wind power plants in Rajasthan since April 1, 2019 because a fresh power purchase agreement, or PPA, with the Rajasthan state government has not been executed. The company said its writ petition on the matter is pending before the High Court of Rajasthan.

The joint statutory auditors highlighted this revenue-recognition issue in their review report dated November 2, 2026, but did not modify their conclusion on the standalone results. They stated that their limited review had not identified any matter causing them to believe the unaudited standalone results did not make the required disclosures or contained a material misstatement.

Conclusion

NALCO’s September-quarter and first-half results were shaped by the aluminium segment, whose six-month profit increased to Rs 4,383.85 crore from Rs 2,087.55 crore. That gain offset a decline in six-month chemicals segment profit to Rs 552.82 crore from Rs 1,126.47 crore, helping lift standalone first-half profit by 54%.

The next disclosed event is the payment of the Rs 4.50-per-share interim dividend on or before December 1, 2026 for shareholders eligible on the November 6 record date. Investors can also watch for progress in the Rajasthan wind-plant PPA matter, which remains unresolved and has prevented revenue recognition from the two facilities since April 2019.