New Delhi: State-owned National Aluminium Company Ltd (Nalco) delivered a strong start to FY27, reporting a nearly 91 percent jump in consolidated net profit for the April-June quarter, as buoyant aluminium prices and higher revenue more than offset an increase in operating costs.
The Navratna PSU posted a consolidated net profit of Rs 2,003.14 crore for the first quarter ended June 30, 2026, compared with Rs 1,049.48 crore in the corresponding period last year, according to a regulatory filing on Friday.
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Revenue from operations rose nearly 39 percent year-on-year to Rs 5,302.38 crore from Rs 3,806.94 crore, reflecting improved market conditions for aluminium and alumina as well as healthy operational performance.
While total expenses increased to Rs 2,786.78 crore from Rs 2,501.18 crore in the year-ago quarter, the rise was significantly lower than the growth in revenue, enabling the company to post a sharp expansion in profitability.
The standout feature of Nalco's first-quarter performance is not merely the sharp rise in profit but the significant widening of margins. Revenue grew at a much faster pace than expenditure, indicating that stronger aluminium and alumina realisations more than compensated for higher input and operating costs.
For commodity producers such as Nalco, earnings are closely linked to movements in global metal prices, raw material costs and demand from sectors such as infrastructure, power, automobiles and construction. The latest quarterly performance suggests the company has been able to capitalise on a favourable pricing environment while maintaining operational discipline.
The results also underscore the competitive advantage enjoyed by integrated producers like Nalco, which operate across the bauxite, alumina, aluminium and captive power value chain. Such integration helps cushion profitability during periods of input cost volatility and enhances earnings when metal prices strengthen.
Nalco's robust profitability is expected to further strengthen its balance sheet at a time when the company is pursuing capacity expansion across mining, alumina refining and aluminium smelting. A stronger cash position provides greater flexibility to fund capital expenditure while maintaining shareholder returns without significantly increasing borrowings.
The company's performance also comes as India's aluminium demand continues to receive support from government-led infrastructure spending, rapid growth in renewable energy projects, transmission networks, electric mobility and defence manufacturing. These sectors are expected to remain key drivers of domestic aluminium consumption over the medium term, although global prices and Chinese supply dynamics will continue to influence the industry's profitability.
Reflecting confidence in its financial position, Nalco's board recommended a final dividend of Re 1 per equity share for FY26. Subject to shareholders' approval at the company's 45th Annual General Meeting, the dividend will be paid within 30 days of its declaration.
The recommendation reinforces Nalco's position as one of the Centre's consistent dividend-paying public sector enterprises, providing a steady stream of returns to the government, which holds a 51.28 percent stake in the company.
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As one of India's largest integrated producers of bauxite, alumina and aluminium, Nalco remains a key player in the country's non-ferrous metals sector. With commodity prices remaining relatively supportive and domestic demand expected to stay resilient, investors will closely watch whether the PSU can sustain its earnings momentum in the coming quarters despite uncertainties in global metal markets.
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