Hindalco's Record FY25 and Big Capex Push Indicate Robust Growth for FY26

Image Source: The Economic Times

Hindalco Industries, the Aditya Birla Group metals flagship, has rounded off FY2025 on record financial numbers and is embarking on a giant leap for FY26 with an ambitious capital expenditure programme.

Key Points:

Record Financial Performance:
Hindalco reported its all-time consolidated revenue of ₹2,38,496 crore for the FY25 financial year, growing 10% y-o-y. Profit after tax grew 58% to ₹16,002 crore, while EBITDA increased 38% at ₹35,496 crore on the back of strong operational results from aluminium and copper business as well as Novelis, its global subsidiary.

Q4 Momentum
The revenue of the company during Q4 FY25 reached ₹64,890 crore, registering a 16% YoY growth. Profit after tax in Q4 increased 66.5% to ₹5,284 crore, with EBITDA increasing 43% to ₹10,296 crore. Downstream aluminium EBITDA increased 52%, driven by value-added product sales strength.

Capex Ambitions for FY26:
Hindalco will invest ₹8,000 crore in India in FY26 as part of an overall ₹45,000 crore investment over three to four years. The money will add capacity in aluminium, copper, and specialty alumina, including new smelters and recycling facilities, which are already in the works.

Novelis Performance and Expansion
Novelis, the US-based subsidiary of Hindalco, recorded a sequential turnaround in Q4 FY25, with EBITDA per ton increasing to $494. The US-based flagship Bay Minette project is 90% engineering completed with an investment of $1.6 billion.

Strategic Focus:
Hindalco is looking to more than double the proportion of downstream businesses in pre-tax profits to 30% over three years, with focus on value-added products and operational efficiency.

Market Outlook:
Analysts are optimistic, with ICICI Securities upping Hindalco's 12-month share price target to ₹770, based on structural positives, continued capex, and strong demand for drink cans.

Source:
Business Standard, Economic Times, India Today, AlCircle, YourStory, TopNews