Natl. Aluminium Q2 FY27 Results (NSE: NATIONALUM)
Signal: Margin pressure
The read
Q2FY27 confirms continued aluminium-led earnings momentum, with consolidated revenue up 26.3% YoY to ₹5,419.44 Cr and PAT up 28.3% to ₹1,835.05 Cr, but the trajectory has shifted from Q1FY27's 51.00% EBITDA margin to 47.76% as raw-material intensity increased 170bps YoY; chemicals remains the drag, with segment result down 54.8% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,419.44 Cr | +26.3% | +2.2% |
| EBIT | ₹2,410.56 Cr | N/A | |
| Net profit | ₹1,835.05 Cr | +28.3% | |
| EPS | ₹9.99 | +28.2% | |
| EBIT margin | 47.76% |
P&L walk
Revenue increased to ₹5,419.44 Cr, +26.3% YoY and +2.2% QoQ, led by aluminium; EBITDA margin was 47.76%, down 116bps YoY and 330bps QoQ as raw-material intensity rose, while PAT increased 28.3% YoY to ₹1,835.05 Cr.
Segments
Aluminium was the clear earnings driver: revenue rose 44.6% YoY to ₹4,164.54 Cr and segment result rose 73.1% to ₹2,058.15 Cr, while chemicals revenue fell 7.7% and segment result fell 54.8% to ₹281.90 Cr; consolidated PAT was only ₹2.16 Cr above standalone PAT.
Key positives
- Revenue rose 26.3% YoY to ₹5,419.44 Cr, led by aluminium segment revenue growth of 44.6% to ₹4,164.54 Cr.
- PAT increased 28.3% YoY to ₹1,835.05 Cr, with EPS tracking at +28.2% YoY to ₹9.99.
- Operating cash flow rose 60.7% YoY to ₹4,371.39 Cr in H1FY27, exceeding H1 PAT of ₹1,429.94 Cr by ₹2,941.45 Cr.
- The aluminium segment result increased 73.1% YoY to ₹2,058.15 Cr, more than offsetting the chemicals segment result decline of ₹344.78 Cr.
- Finance costs remained low at ₹9.56 Cr, equivalent to less than 0.2% of quarterly revenue.
Key concerns
- Gross margin compressed 170bps YoY to 85.09% as raw-material cost rose to 14.91% of revenue from 13.16%.
- EBITDA margin fell 330bps QoQ to 47.76% after Q1FY27's 51.00%, indicating a near-term moderation in profitability.
- Chemicals segment revenue declined 7.7% YoY to ₹1,692.57 Cr and segment result declined 54.8% to ₹281.90 Cr.
- The filing does not recognise revenue from two Rajasthan wind power plants since 1 April 2019 because fresh PPAs have not been executed and the matter is sub judice.
Research and educational content only. Not investment advice.