National Aluminium Co Ltd (BOM:532234)

Q1 2027 National Aluminium Co Ltd Earnings Call Transcript

Aug 3, 2026 / 05:00 AM GMT

Release Date Price: ₹364 (+3.97%)

Transcript

Key Points

Positve

National Aluminium Co Ltd (BOM:532234) reported a robust Q1 FY27 with total income growing 39% year-over-year to Rs 5,400 crore, and PBT and EBITDA surging 88% and 78%, respectively.
The company achieved best-ever quarterly production in bauxite, hydrate, and wind power, and is targeting 5-10% above rated capacity utilization across all areas.
Alumina realizations are expected to improve significantly in Q2 FY27, with spot prices rising to around $370-$380 per ton from $323 in Q1, driven by supply disruptions in Russia and China.
Domestic aluminum premiums have increased to $110 per ton from $60, boosting realizations, and the company expects LME prices to remain supported by a projected 0.88 million ton global supply deficit.
The company maintains a strong balance sheet with zero debt and a cash reserve of Rs 10,500 crore, which will be used to fund its expansion plans without external borrowing.
Employee costs are declining due to a superannuation scheme for senior staff and lower provisions, with a trend of 170-200 employee reductions expected annually over the next few years.
The new 1 million ton alumina refinery (5th stream) is progressing, with mechanical completion targeted by September and 200,000 tons of production expected this fiscal year, adding to sales volumes.
Captive coal production is on track to increase to 4.8 million tons in FY27, offering significant cost savings compared to e-auction coal, which is about Rs 1,500 per ton more expensive.

Negative

The commissioning of the new 1 million ton alumina refinery has been delayed by 2-3 months, with production now expected to start only from November-December 2026, pushing full capacity utilization to next fiscal year.
Raw material costs are rising sharply, with caustic soda, CPC, and HFO prices increasing metal production costs by Rs 15,000-16,000 per ton, and Q2 costs are expected to rise further to around Rs 172,000 per ton.
LME aluminum prices have cooled down to around $3,200 from Q1 averages of $3,600-$3,700, which could pressure margins despite higher alumina prices.
Coal inventory at the refinery is critically low at only 2-3 days (versus the required 10-15 days) due to railway rake priority issues, posing a risk to production continuity.
The Potangi bauxite mine development is facing delays due to local resistance and activist opposition, with production now expected to start only from October 2026, later than planned.
The company has no plans to enter aluminum recycling, which could limit its ability to capture growth in that segment, though it maintains this is to preserve metal quality.
The massive Rs 25,000 crore capex for the 0.5 million ton smelter and 1,000 MW power plant will begin next fiscal year, with peak spending in FY29-FY31, potentially straining cash flows despite current reserves.
Alumina sales volumes are expected to increase only modestly to 1.6 million tons in FY27 from 1.4 million tons last year, as the full benefit of the new refinery will only be realized from FY28.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

NALU.NS - National Aluminium Co Ltd
Q1 2027 National Aluminium Co Ltd Earnings Call
Aug 03, 2026 / 05:00AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to the Q1 FY27 earnings call of National Aluminium Company Limited conference call hosted by Systematics Group.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. I now hand the conference over to Ms. Shweta Dixit from Systematics Group.

Thank you.

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Unidentified_2 [2]
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