Natl. Aluminium Q1 FY27 Results (NSE: NATIONALUM)
Signal: Margin expansion
The read
NALCO Q1FY27 marks a sharp margin-led recovery after two quarters of contraction (Q3/Q4FY26). Revenue growth of 39% YoY to ₹5,302 Cr, combined with an 1,190 bps EBITDA margin expansion to 54.3%, drove PAT up 89% to ₹2,003 Cr. The aluminium segment benefited from higher realisations and lower input costs, while chemicals lagged. The 76% plunge in other income (to ₹173 Cr) was a drag but did not offset operating gains. The company remains debt-free and has recommended a final dividend of ₹1/share for FY26.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,302.38 Cr | 39.3% | 4.5% |
| EBIT | ₹2,698.45 Cr | 87.8% | |
| Net profit | ₹2,003.14 Cr | 88.9% | |
| EPS | ₹10.91 | 91.1% | |
| EBIT margin | 54.3% |
P&L walk
Revenue grew 39% YoY driven by strong aluminium segment (+49% YoY), while chemicals revenue slipped. Gross margin expanded ~480 bps YoY to 71% as input cost (raw materials + power) as % of revenue declined. EBITDA margin surged 1,190 bps YoY to 54.3% aided by operating leverage (EBITDA +78% vs revenue +39%) and lower fixed costs (employee cost +6% YoY, depreciation +2% YoY). Other income collapsed 76% to ₹173 Cr, partly offsetting operating gains. Net profit rose 89% YoY to ₹2,003 Cr, with EPS following PAT growth.
Segments
Aluminium segment is the primary growth engine, with segment revenue up 49% YoY and segment result (PBIT) surging 189% to ₹2,597 Cr, contributing ~90% of total segment profit. Chemicals segment saw a 3.6% revenue decline and a 46% drop in segment profit, reflecting margin compression. Standalone-vs-consolidated PAT difference is negligible, as JV contributions (net loss of ~₹0.15 Cr) are immaterial.
Key positives
- EBITDA margin expanded 1,190 bps YoY to 54.3%, the highest in at least 3 years, on strong operating leverage and lower input costs.
- Aluminium segment revenue up 49% YoY and segment profit up 189%, driving overall performance.
- Net profit grew 89% YoY to ₹2,003 Cr, with EPS at ₹10.91.
- Debt-free balance sheet (D/E 0) with recommended final dividend of ₹1/share (20% on face value of ₹5).
Key concerns
- Other income collapsed 76% YoY to ₹173 Cr, reducing bottom-line resilience if commodity prices weaken.
- Chemicals segment revenue and profit declined (revenue -3.6%, profit -46% YoY), indicating mixed performance across product lines.
- Q1FY27 revenue grew only 4.5% QoQ after a strong Q4FY26, suggesting sequential growth is moderating.
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