India's Hindalco beats quarterly profit estimates on higher commodity prices (updated)

HindalCo Industries

07/11/2025 09:28

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Nov 7 (Reuters) -
India's Hindalco Industries HALC.NS beat quarterly profit estimates on Friday as firmer commodity prices helped offset tariff-related pressure at its U.S. unit Novelis.

The Aditya Birla Group-owned firm, one of India's biggest aluminium and copper producers, posted a 21.3% rise in consolidated net profit to 47.41 billion rupees ($539.4 million) for the three months ended September 30.

Analysts had estimated 45.65 billion rupees, per data compiled by LSEG.

Benchmark three-month aluminium CMAL3 and copper CMCU3 prices gained 8.2% and 5.6% year-on-year, respectively, in the reported quarter amid uncertainty over U.S. trade policies.

Revenue from Novelis, Hindalco's IPO-bound aluminium recycling arm that contributes to about 60% to its top-line, rose 15.1% on higher aluminium prices.

        Margins, however, remained under strain from elevated scrap costs and U.S. tariff-related headwinds, though demand stayed firm on strong automotive and aerospace orders.

        The company also took a $21 million charge related to a plant fire during the quarter.

Domestic demand stayed firm, driven by strong manufacturing activity.

In India, Hindalco's copper segment saw an 11% revenue rise, while its aluminium upstream and downstream businesses grew 10% and 20%, respectively.

Overall revenue from operations climbed 13.5% to 660.58 billion rupees, with total expenses up 13%.

   The company also approved an investment of 102.25 billion rupees to expand capacity by 193 kilotonnes at its aluminium plant in the eastern state of Odisha.

($1 = 87.8950 Indian rupees)

 (Reporting by Manvi Pant and Anuran Sadhu; Editing by Sumana Nandy and Nivedita Bhattacharjee)

 ((Manvi.Pant@thomsonreuters.com; +918447554364;))