NALCO Declares Rs 2.5 Dividend as Q1 Profit Surges to Rs 10.64 Billion

National Aluminium Company Ltd (NALCO), one of India’s leading public sector enterprises in the metals and mining sector, has announced a dividend of Rs 2.5 per share following a strong financial performance in the quarter ended June 2025. The company reported a consolidated net profit of Rs 10.64 billion and revenue from operations of Rs 38.07 billion, reflecting robust demand, improved realizations, and operational efficiency across its integrated value chain.

 

The dividend declaration underscores NALCO’s commitment to shareholder returns while maintaining a strong balance sheet and investing in long-term growth.

 

Key Highlights from Q1 FY26 Results

- Consolidated net profit stood at Rs 10.64 billion, marking a significant year-on-year improvement  

- Revenue from operations reached Rs 38.07 billion, driven by higher alumina and aluminium sales  

- The Board of Directors approved a dividend of Rs 2.5 per equity share for eligible shareholders  

- Operational margins remained healthy despite global commodity price fluctuations  

 

Performance Across Business Segments

NALCO’s integrated operations contributed to its strong quarterly results:

 

1. Bauxite and Alumina  

   - Increased mining output from Odisha operations supported higher alumina production  

   - Export volumes remained stable, with competitive pricing in Southeast Asian markets  

 

2. Aluminium  

   - Domestic metal sales saw strong growth, supported by infrastructure and automotive demand  

   - Realizations improved due to favorable market prices and efficient cost management  

 

3. Power  

   - Captive power generation ensured energy security for smelting operations  

   - Operational efficiency in thermal units helped contain energy costs  

 

Dividend Declaration and Shareholder Impact

The Rs 2.5 per share dividend reflects NALCO’s consistent payout policy:

 

- The dividend yields approximately 3 percent based on current market prices  

- Payment will be made to shareholders whose names appear in the register as of the record date  

- The company has maintained a steady dividend track record, with multiple payouts in FY24  

 

Strategic Initiatives and Expansion Plans

NALCO continues to invest in capacity expansion and sustainability:

 

- Plans are underway to develop a second alumina refinery in Odisha  

- The company is exploring green aluminium production through renewable energy integration  

- Strategic collaborations with international partners are being pursued for technology upgrades  

 

Leadership Commentary and Outlook

Management remains optimistic about the company’s growth trajectory:

 

- Chairman and Managing Director Sanjay Lohiya emphasized operational excellence and stakeholder value  

- Focus remains on enhancing domestic market share and expanding export footprints  

- The company aims to maintain profitability through cost discipline and product diversification  

 

Market Sentiment and Analyst Views

The Q1 results and dividend announcement have been well received by investors:

 

- Shares of NALCO showed modest gains following the earnings release  

- Analysts expect continued strength in earnings, supported by global aluminium demand and domestic infrastructure push  

- Long-term outlook remains positive, with emphasis on volume growth and margin stability  

 

Conclusion

NALCO’s Q1 FY26 performance highlights its resilience and strategic clarity, with Rs 10.64 billion in net profit and Rs 38.07 billion in operational revenue. The Rs 2.5 per share dividend reinforces its commitment to shareholder value while maintaining financial strength. As the company continues to expand its operations and embrace sustainability, it remains a key player in India’s industrial growth story.

 

Sources: Economic Times, ET Now News, PSU Connect, NALCO official disclosures