This article first appeared on GuruFocus .
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Revenue Growth:Increased by 13% for the nine months ended December 2025 compared to the previous year.
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Expenditure Growth:Increased by 6% for the nine months ended December 2025.
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EBITDA Margin:Increased by approximately 20% for the nine months.
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Profit Before Tax (PBT):Increased by 25% for the nine months.
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Alumina Production Volume:Increased by 20% for the nine months.
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Metal Production Volume:Increased by 3.5% for the nine months.
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Alumina Sales Volume:Increased by 45% for the nine months.
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Metal Sales Volume:Increased by around 5% for the nine months.
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Revenue Increase:INR 2,000 crores increase for the nine months, with alumina contributing INR 1,600 crores and metal INR 410 crores.
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Alumina Price Impact:Negative impact of INR 1,652 crores due to price drop from $562 to $385.
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Metal Price Impact:Positive impact of INR 781 crores due to price increase from $2,538 to $2,867.
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Power and Fuel Savings:Savings of INR 142 crores.
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Employee Cost Reduction:Decreased by INR 118 crores.
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Quarterly Income Increase:Q3 income increased by INR 200 crores compared to the previous year.
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Quarterly Expenditure Increase:Q3 expenditure increased by INR 60-70 crores.
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Profit After Tax (PAT):Increased from INR 2,121 crores to INR 2,131 crores for Q3.
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Release Date: January 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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National Aluminium Co Ltd ( BOM:532234 ) reported a 13% increase in income for the nine months ended December 2025 compared to the previous year.
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EBITDA margin improved by approximately 20%, and profit before tax (PBT) increased by 25% year-over-year.
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The company achieved a 20% increase in alumina production and a 3.5% increase in metal production.
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Sales of alumina rose by 45%, and metal sales increased by around 5% compared to the previous year.
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Cost-saving measures, including a reduction in employee costs by INR118 crores and savings in power and fuel by INR142 crores, contributed to improved profitability.
Negative Points
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Alumina prices fell significantly from $562 to $385, negatively impacting revenues by INR1,652 crores.
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The company anticipates a slight increase in costs for Q4 due to rising prices of CT Pitch, CP coke, and caustic soda.
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Employee costs are expected to rise in the future due to upcoming wage revisions starting January 2027.
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The company faces challenges in alumina exports due to geopolitical tensions in the Middle East, affecting January shipments.
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There is an excess supply of alumina in the market, leading to reduced prices and impacting profitability.
Q & A Highlights
Q: In Q3, how much alumina shipments were linked to LME and how much were spot sales? What is the spot versus contract mix in Q4? A: In Q3, we did around four shipments per month, with three shipments on spot and one linked to LME. For Q4, the mix will be similar, with one shipment linked to LME and the rest on spot.
Q: Have you started signing long-term contracts for the new refinery? A: We plan to start the commissioning process in June, expecting around 3 lakh tonnes of alumina production this year. We are considering long-term contracts of one to three years, depending on the offers we receive.
Q: What is the plan for extracting critical minerals from alumina red mud? A: We have an MOU with NML Jamshedpur to set up pilot facilities for extracting rare earths, expected to take 1.5 to 2 years. Additionally, we are working with a Chennai-based party and BARC for extracting critical minerals and gallium, respectively.
Q: Are you going to raise the guidance for alumina sales volume for FY26? A: Despite a strong Q3, January's sales were affected by tensions in the Middle East. We aim to reach 1,250,000 to 1,300,000 tonnes by year-end, depending on conditions in February and March.
Q: What is the outlook for aluminum cost of production and its impact on Q4? A: The aluminum cost of production ranges between INR150,000 to INR160,000. In Q4, costs may increase slightly due to higher CP coke and caustic soda costs, but we are working on improving efficiencies to mitigate this impact.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
