Hindalco delivers record FY25 performance, board approves coal block acquisition to secure long-term fuel supply

Hindalco Industries Limited capped off FY25 with its strongest financial performance to date, reporting record revenue, EBITDA, and profit both for the March quarter and the full year. The Aditya Birla Group flagship also made a strategic acquisition, taking over EMIL Mines and Mineral Resources Ltd (EMMRL), the leaseholder of the Bandha coal block, to fortify long-term resource security for its aluminium operations.

For the quarter ended March 31, 2025, Hindalco posted a consolidated revenue of ₹64,890 crore—up 16% year-on-year—while quarterly EBITDA surged 43% to ₹10,296 crore. Net profit for the quarter stood at ₹5,284 crore, up 66% from the previous year, driven by strong domestic performance and resilient global operations by subsidiary Novelis.

On a full-year basis, revenue touched an all-time high of ₹2,38,496 crore, a 10% increase over FY24. EBITDA grew 38% to ₹35,496 crore, and net profit rose by 58% to ₹16,002 crore. The company’s board recommended a 500% dividend, or ₹5 per share, a 43% increase over the previous year.

Aluminium Upstream operations delivered a stellar performance, with fourth-quarter EBITDA rising 79% year-on-year to ₹4,838 crore, supported by lower input costs and favourable macroeconomic conditions. Segment EBITDA margins touched an industry-best 47%, and revenue increased 22% to ₹10,311 crore.

Aluminium Downstream also recorded its highest quarterly EBITDA at ₹219 crore, up 52% from the previous year, driven by an improved product mix. Revenue in this segment rose 23% to ₹3,595 crore.

Copper operations maintained momentum, with record quarterly CCR (Continuous Cast Rod) sales of 109 KT, marking a 12% year-on-year growth. Despite a sharp fall in treatment and refining charges (TC/RCs), EBITDA held at ₹614 crore, and revenue rose 8% to ₹14,565 crore.

Meanwhile, Novelis, Hindalco’s U.S.-based subsidiary, posted revenue of $4.6 billion in the fourth quarter, up 13% year-on-year. Though EBITDA declined 8% due to higher scrap prices and operating costs, net income rose 77% to $294 million on the back of favourable pricing and tax adjustments.

In a move aligned with its upstream expansion strategy, Hindalco’s board approved the acquisition of a 100% stake in EMIL Mines and Mineral Resources Ltd, a wholly owned subsidiary of Essel Mining & Industries Ltd. EMMRL is the leaseholder of the Bandha coal block, which holds mineable reserves of 197 million tonnes and a mine life of about 45 years. Located just 20 km from Hindalco’s Mahan smelter and power plant, the mine is expected to strengthen the company’s fuel security by supporting rail, road, and conveyor transport options.

The transaction, classified as a related-party deal due to a shared promoter group, will be conducted at arm’s length with a preliminary acquisition cost of ₹48 lakh (subject to due diligence and valuation at closing). The acquisition is expected to close within six to nine months, pending shareholder and regulatory approvals.

Hindalco's Managing Director Satish Pai said the company is “poised to enter a phase of accelerated growth,” supported by its coal and bauxite resource securitisation and major investments across aluminium and copper verticals. Projects in the pipeline include the copper smelter expansion, e-waste recycling facilities, and downstream aluminium production capacity at Chakan and Aditya.