Mumbai: National Aluminium Company Limited (NALCO), the Navratna CPSE under the Ministry of Mines, announced its unaudited financial results for the third quarter ended December 31, 2025, showcasing a landmark performance with significant growth in both physical and financial metrics.
Financial Performance Highlights (Q3 FY26 & 9M FY26)
Nine Months Ended December 2025 (YoY Growth):
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Income: Increased by 13%
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Expenditure: Grew by only 6% despite higher income
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EBITDA Margin: Rose by ~20%
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Profit Before Tax (PBT): Surged by 25%
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Production Volume (9M):
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Alumina: Increased by 20%
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Metal: Increased by 3.5%
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Sales Volume (9M):
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Alumina: Jumped by 45%
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Metal: Grew by ~5%
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Key Operational & Financial Drivers:
The company attributed the stellar performance to a sharp increase in production volumes, which helped offset a significant decline in alumina prices. Key factors included:
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Alumina Price Impact: Average prices fell from ~$562 to ~$385 per tonne, creating a negative impact of ₹1,652 crores.
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Aluminium Price Benefit: Average LME aluminium prices rose from $2,538 to $2,867 per tonne, providing a positive impact of ₹781 crores.
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Cost Efficiency: Savings in power & fuel costs (~₹142 crores) and reduced employee costs (~₹118 crores) contributed to maintaining profitability.
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Techno-economic Improvements: Specific consumption of key inputs like caustic soda and calcined petroleum coke (CP Coke) showed significant improvement.
Management Commentary & Future Outlook
Shri Brijendra Pratap Singh, Chairman-cum-Managing Director, highlighted the company's focus on volume growth and operational efficiency. He provided the following key insights:
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Expansion Plans: NALCO is aggressively pursuing a major capacity expansion. The company plans to add a new 0.5 million tonne aluminium smelter. A Detailed Project Report (DPR) is targeted for completion by mid-2026, with commissioning expected by late 2030 or early 2031.
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New Alumina Refinery: The 1 million tonne per annum alumina refinery at Pottangi is on track for commissioning in June 2026. The company expects a production of 3 lakh tonnes from this facility in FY27.
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Aluminium & Alumina Price Outlook:
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Aluminium (LME): Expected to remain strong, averaging around $2,900-$3,000 in the near term, significantly higher than earlier forecasts. Current prices are near $3,200.
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Alumina: Prices are under pressure due to a global supply surplus. Q4 FY26 realizations are expected to average around $310-$320 per tonne.
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Cost of Production: The integrated cost of aluminium production (with captive alumina) is in the range of ₹150,000 to ₹160,000 per tonne. Slight upward pressure is expected in Q4 due to rising costs of key inputs like CP coke and caustic soda.
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Diversification into Critical Minerals: NALCO has signed multiple MoUs for pilot projects to extract critical minerals and rare earth elements from red mud and Bayer's liquor. These projects are in early R&D stages, with commercial viability expected to be established in the next 1-2 years.
Dividend Declaration
The Board of Directors has declared an Interim Dividend of ₹1 per equity share (10% of the face value of ₹10 each) for the financial year 2025-26.
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Record Date: Wednesday, February 11, 2026
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Payment Date: On or before Friday, March 6, 2026
Segment-Wise Performance
NALCO operates in two primary segments:
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Aluminium Metal: Benefited from higher LME prices and strong domestic demand.
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Chemicals (Alumina): Faced margin pressure due to falling global prices, but this was mitigated by a 45% surge in sales volume and improved operational efficiency.
Market Context & Strategic Focus
NALCO's robust performance aligns with the strong global demand for aluminium, driven by sectors like infrastructure, automotive, and renewables. The company's strategy of backward integration (captive bauxite mines, coal blocks) and focus on cost leadership positions it well to capitalize on market opportunities. Its planned expansions and foray into critical minerals signify a forward-looking growth strategy.
About NALCO:
National Aluminium Company Limited (NALCO) is a Navratna Central Public Sector Enterprise under the Ministry of Mines, Government of India. It is Asia's largest integrated aluminium complex, encompassing bauxite mining, alumina refining, aluminium smelting, casting, power generation, and rail and port operations.