Hindalco Industries Ltd (OTCPK:HNDNF)

Q1 2027 Hindalco Industries Ltd Earnings Call Transcript

Aug 7, 2026 / 10:30 AM GMT

Release Date Price: $2.95

Transcript

Key Points

Positve

Record quarterly EBITDA of INR 13,481 crore, up 58% year-on-year, driven by strong performance across all segments.
India upstream aluminum delivered record EBITDA of INR 7,390 crore with industry-leading margins of 55% and EBITDA per ton of $2,331.
Copper business achieved record EBITDA of INR 918 crore, up 36% year-on-year, despite a planned maintenance shutdown.
Novelis' adjusted EBITDA increased 30% year-on-year to $516 million, supported by $225 million in run-rate cost savings and progress toward the $350-400 million structural cost reduction goal.
Strong balance sheet with consolidated net debt-to-EBITDA at 1.95x, below the stated threshold of 2x, and disciplined capital allocation.
Successful restart of the Oswego mill in June, with ramp-up progressing steadily, and expectation that most of the fire-related headwinds will be recovered in the next fiscal year.
Structural benefits from the new tax regime (effective tax rate lowered to 26%) and rupee depreciation boosting dollar-denominated earnings from Novelis.
Growth projects on track, including the Bay Minet greenfield facility, Aditya alumina refinery, and captive coal mines, which are expected to enhance long-term profitability.
Strong sustainability performance: no fatalities, improved LTIFR of 0.21, 80% waste recycling, and progress on renewable energy capacity additions.
Aluminum market remains constructive with a projected deficit of 1 million tons in 2026, supporting prices and margins.

Negative

Novelis' shipments declined 5% year-on-year to 916 kt, impacted by the Oswego fire and ongoing supply chain disruptions.
Tariff impact of $70 million in the quarter is expected to persist for the next couple of quarters, with no clear timeline for normalization.
Copper concentrate market remains challenging with tight availability and historically low treatment and refining charges, which may pressure margins.
India copper volumes were down 16% year-on-year due to a planned maintenance shutdown, impacting overall shipments.
Global economic uncertainty, including geopolitical conflicts and inflation, poses risks to demand and cost structures.
Aluminum costs are expected to rise 5-6% in Q2 due to higher coal prices and seasonal factors, potentially impacting margins.
The new brand royalty payment of 0.25% of revenue (capped at INR 225 crore annually) will be a new cost for Hindalco and Novelis, though below materiality threshold.
Net debt-to-EBITDA is expected to remain stable in the near term due to high capex, with leverage reduction only expected in Q4.
Downstream aluminum EBITDA per ton of $303 is considered unsustainable, with a more realistic level around $250 in the near term.
External alumina sales were lower than expected (138 kt vs. planned 190 kt) due to a missed shipment, impacting revenue.

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

HALC.NS - Hindalco Industries Ltd
Q1 2027 Hindalco Industries Ltd Earnings Call
Aug 07, 2026 / 10:30AM GMT

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Presentation
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Unidentified_1 [1]
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Good day and welcome to

The earnings conference call of Hindalco 1st quarter results for Ffi27.

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 presentations.

Should you need assistance during the conference call, please signal an operator by pressing on your touchstone phone.

Please note this conference is being recorded.

I now hand the conference over to Mr. Subi Sen, head of investor relations at Hindalco I notice you, Mrs.

Sen.

Thank you and a very good morning and evening, everyone.

Daalco Industries, I welcome you to the earnings call for the 1st

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