Hindalco reports record-high 73% aluminium upstream EBITDA hike in Q3 FY25

Hindalco Industries, the flagship metal-driven business of the Aditya Birla Group, has reported a strong 60 per cent surge in its consolidated net profit for the December quarter (Q3 FY2025). The company's net profit reached INR 3,735 crore (USD 450 million), up from INR 2,331 crore (USD 279.72 million) in the same period a year earlier.

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The company's operational revenue for Q3 FY2025 grew 11 per cent to INR 58,390 crore (USD 7 billion), compared to INR 52,808 crore (USD 6.34 billion) in the corresponding quarter of the previous financial year. However, Hindalco saw a 4.4 per cent sequential decline in profit after tax (PAT), down from INR 3,909 crore (USD 469.08 million) in Q2 FY2025. Revenue, on the other hand, recorded a slight quarter-on-quarter increase of 0.32 per cent, reaching INR 58,203 crore (USD 6.98 billion) in the July-September quarter.

Commenting on the results, Satish Pai, Managing Director of Hindalco Industries, said: "Hindalco delivered robust consolidated results in the third quarter despite global uncertainties, driven by an excellent performance of its India business. The Aluminium India upstream business achieved record quarterly EBITDA, with industry-leading margins of 42 per cent. The downstream segment experienced consistent growth, posting a 36 per cent increase in EBITDA."

Hindalco Industries emerged as the ‘World's Most Sustainable Aluminium Company’ for the fifth consecutive year in the 2024 edition of the S&P Global Corporate Sustainability Assessment (CSA) rankings.

Pai further added, "During the quarter, we secured critical resources for our India upstream business, enhancing our global cost leadership. Key growth initiatives, such as the alumina refinery, aluminium smelter expansion, copper smelter expansion and the FRP project, remain on track. Our strong balance sheet positions us well for the next phase of transformative growth. Our holistic ESG approach continues to gain global recognition. Hindalco is the only company to achieve a Top 1 per cent ranking in the S&P Global Sustainability Yearbook 2025 with the highest ESG score in the aluminium sector."

The company reported a record-high aluminium upstream EBITDA of INR 4,222 crore, a 73 per cent increase, with an EBITDA margin of 42 per cent. Its quarterly copper EBITDA reached INR 777 crore, reflecting an 18 rise. The consolidated EBITDA for the period stood at INR 8,108 crore, up 28 per cent.

The US President’s surprise move to impose a 25 per cent tariff on all steel and aluminium imports has sent shockwaves across global markets. However, industry experts have reinstated their trust upon Hindalco’s 100 per cent subsidiary Novelis, confirming that it is well-equipped to weather this storm. The 20-year-old Atlanta-based business has been owned by Indian metals company Hindalco Industries since 2007.