💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 28% YoY to INR 16,787.63 Cr in FY 2024-25. Export turnover increased 29% to INR 5,516.97 Cr, while domestic turnover grew 27% to INR 11,145.24 Cr. This growth was driven by higher LME price realizations and increased sales volumes.

Geographic Revenue Split

Domestic sales contributed 66.9% (INR 11,145.24 Cr) and Export sales contributed 33.1% (INR 5,516.97 Cr) of the total turnover in FY 2024-25.

Profitability Margins

Operating Profit Margin improved significantly from 21.85% to 45.06% (a 106.22% increase) due to higher LME prices and lower input costs. Return on Net Worth rose from 14.14% to 29.51% (up 108.70% YoY).

EBITDA Margin

EBIDTA (excluding exceptional items) for H1 FY 2025-26 was INR 3,693 Cr, representing a 41.17% increase over the previous year's H1 of INR 2,616 Cr. The full-year FY 2024-25 EBIDTA stood at INR 7,922 Cr.

Capital Expenditure

Accumulated expenditure on the 5th Stream Refinery expansion reached INR 4,500 Cr by mid-FY 2025-26, with an additional INR 600-700 Cr planned for the remainder of the year. Total project closure and final 5-10% payments are expected in FY 2026-27.

Credit Rating & Borrowing

The company maintains a zero-debt leverage position with a cash and cash equivalent balance of INR 7,900 Cr as of September 2025. Finance costs increased 242.65% to INR 58.97 Cr in FY 2024-25, primarily due to interest on deferred advance tax and mine closure obligations.

⚙️ Operational Drivers

Raw Materials

Bauxite, Coal, and Caustic Soda are the primary raw materials. Raw materials accounted for 20% of total expenditure (INR 2,063.32 Cr), while Power & Fuel accounted for 32% (INR 3,165.94 Cr).

Import Sources

Bauxite is sourced from captive mines in Odisha (Panchpatmali and Pottangi). Coal is sourced from captive Utkal Coal Mines (Utkal D & E) and domestic linkages.

Key Suppliers

Captive sources include Utkal Coal Mines and Pottangi Bauxite Mines. External suppliers for Caustic Soda and other consumables are not specifically named in the documents.

Capacity Expansion

Current Alumina capacity is 2.1 MTPA, expanding by 1.0 MTPA via the 5th Stream Refinery project by June 2026. Bauxite capacity is 7.5 MTPA, with the Pottangi mine adding 111 million tonnes of reserves. Metal capacity is 0.46 MTPA.

Raw Material Costs

Raw material costs decreased 26.10% YoY to INR 2,063.32 Cr in FY 2024-25, driven by a 21.42% reduction in prices and a 4.68% reduction in production-linked consumption.

Manufacturing Efficiency

The new refinery stream is expected to be more efficient, requiring less manpower and lower caustic soda consumption compared to the existing four streams. Alumina production in H1 FY 2025-26 increased 31% YoY to 11.61 lakh tonnes.

Logistics & Distribution

The company operates dedicated port facilities for the storage of Alumina and Caustic Soda and ship loading to manage distribution costs.

📈 Strategic Growth

Expected Growth Rate

9%

Growth Strategy

Growth will be achieved through the 1 MTPA Alumina refinery expansion (5th stream), operationalizing the Pottangi Bauxite mine (111 MT reserve), and increasing coal evacuation from Utkal Coal Mines (from 20 LMT to 28 LMT). The company is also exploring a smelter expansion and a 50% JV for power to minimize outsource financing.

Products & Services

Alumina Hydrate, Special Hydrates, Calcined Alumina, Standard Aluminium Ingots, T-Ingots, Billets, Wire Rods, and Rolled Products.

Brand Portfolio

NALCO (National Aluminium Company Limited).

New Products/Services

Focus on value-added products like extrusions through smelter capacity additions and specialized hydrates from the refinery expansion.

Market Expansion

Targeting the growing domestic EV and rooftop solar sectors, which are expected to drive primary aluminium demand. Global demand is expected to grow at a 4.8% CAGR.

Market Share & Ranking

NALCO is a Navratna CPSE and a global leader in low-cost bauxite and alumina production.

Strategic Alliances

The company utilizes JVs for power plant expansions and has backstopping support for CCDs issued by one of its JV companies.

🌍 External Factors

Industry Trends

The industry is shifting toward green energy (EVs and Solar), with Indian aluminium consumption growing at a 9% CAGR over the last 5 years, outpacing global growth.

Competitive Landscape

Competes with global primary producers and domestic players like Vedanta and Hindalco, particularly in the domestic scrap and import market which grew 10.05% YoY.

Competitive Moat

The primary moat is being the global lowest-cost producer of bauxite and alumina, supported by integrated operations (captive mines and power) and a zero-debt balance sheet.

Macro Economic Sensitivity

Highly sensitive to global GDP growth and Chinese stimulus (15th five-year plan), which impacts global aluminium demand and LME pricing.

Consumer Behavior

Increasing demand for lightweight materials in the automotive sector (EVs) and electrical conductivity in solar power infrastructure.

Geopolitical Risks

Supply curtailments in Mozal (0.24 MTPA) and San Ciprian (0.228 MTPA) due to power issues and disruptions at Novelis impact global supply-demand balances.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (LODR) Regulations, 2015 and the Companies Act 2013. Operations are subject to mining lease registrations (e.g., Pottangi Bauxite Mine) and environmental monitoring.

Environmental Compliance

Adheres to the 4R Principle and Renewable Power Obligation (RPO). REC prices rose to INR 347 per unit, increasing compliance costs.

Taxation Policy Impact

Effective tax expense for FY 2024-25 was INR 1,810.43 Cr on a PBT of INR 7,135.10 Cr (approx 25.4% tax rate).

Legal Contingencies

The company was fined INR 10,85,600 (including GST) by BSE and NSE on November 28, 2025, for non-compliance with Regulation 17(1) of SEBI LODR regarding board composition.

⚠️ Risk Analysis

Key Uncertainties

Volatility in LME aluminium prices and input costs (Caustic Soda, Power) could impact margins by over 50% as seen in historical margin swings.

Geographic Concentration Risk

Operations are heavily concentrated in Odisha, India, making the company sensitive to regional regulations and local mining policies.

Third Party Dependencies

Dependency on external Chartered Accountant firms for internal audits and external vendors for ERP (SAP) maintenance.

Technology Obsolescence Risk

The company is mitigating technology risks by upgrading to more efficient 'one-stream' 1 MTPA refinery technology compared to older four-stream systems.

Credit & Counterparty Risk

Trade receivables increased 21% to INR 186.39 Cr in FY 2024-25, but remain low relative to total turnover of INR 16,787 Cr, indicating strong credit quality.