Financial Performance Highlights

Consolidated Performance:

  • Q2 FY27 Business EBITDA: ₹13,869 crores, up 52% YoY
  • Q2 FY27 Profit After Tax: ₹7,533 crores, up 59% YoY
  • Strong cash flows of ₹23,319 crores during the period, representing 57% YoY increase
  • Capital expenditure: ₹20,719 crores, up 83% YoY
  • Consolidated net debt to EBITDA: 1.80x as of September 2026

India Business Performance:

  • Business segment EBITDA: ₹9,011 crores, up 66% YoY
  • Quarterly PAT: ₹5,852 crores, up 91% YoY
  • Net cash position: ₹9,000 crores (₹16,000 crores treasury less ₹7,000 crores long-term loans)
  • Net debt to EBITDA: -0.35x for India business

Segment-wise Performance

Aluminium Upstream:

  • Shipments: Up 1% YoY
  • Revenues: Up 33% YoY
  • Quarterly EBITDA: ₹7,009 crores, up 55% YoY
  • EBITDA per ton: $2,125
  • EBITDA margins: 52%
  • Hedging position: 29% of commodity at $3,000/ton and 21% in currency at ₹93/$ for rest of FY27
  • Pot relining capitalization added ₹130 crores to EBITDA and depreciation

Aluminium Downstream:

  • Shipments: 119 KT, up 6% YoY
  • Quarterly EBITDA: ₹329 crores, up 26% YoY
  • EBITDA per ton: $289
  • Targeting to cross $300/ton EBITDA as new products qualify

Copper Business:

  • Metal shipments: 116 KT, up 2% YoY
  • CCR volumes: 96 KT (stable)
  • Quarterly EBITDA: ₹1,673 crores, up 164% YoY
  • Normalized quarterly EBITDA run rate: ₹1,200-1,300 crores
  • Key drivers: Strong operational performance, sulfuric acid realizations (₹16,000/ton vs ₹7,000/ton last year), precious metal sales
  • Sulfuric acid volume: ~300,000 tons per quarter

Operational Updates

Novelis:

  • Cumulative insurance recoveries: $519 million for Oswego Hot Mill
  • Long-term EBITDA per ton guidance: $600 unchanged
  • Expect return to positive free cash flow and deleveraging by FY27 end
  • Bay Minette 600 KT greenfield facility produced first cold rolled coil in September 2026
  • Commercial shipments expected Q1 FY28
  • Q2 impact: $20 million from Yeongju strike, similar impact expected in Q3

Project Status:

  • Copper recycling plant in Pakhajan: Commissioning December 2026
  • Aditya Alumina Refinery: Commissioning December 2027
  • 180 KT Aditya smelter first line: Commissioning December 2027
  • Aditya smelter second line: Commissioning December 2028
  • Copper smelter: Commissioning December 2028
  • Chakla coal mine: First coal expected mid-2027
  • Bandha coal mine: First coal expected second half FY28

Cost Structure

Aluminium Cost Drivers:

  • Q2 costs up ~5% above Q1 due to coal and CP coke prices
  • Northern region impacted by heavy rainfall affecting coal availability
  • Expected Q3 costs to be ~5% above Q2
  • Q4 expected improvement as coal prices and availability normalize

Market Outlook

Global Aluminium:

  • Market deficit: ~0.8 million tons for CY2026
  • Q3 CY2026 global production: ~19 million tons, down 1% YoY
  • Consumption: ~19 million tons, up 1% YoY
  • Quarterly deficit: ~0.5 million tons
  • LME price outlook: $2,600-$2,800 for next year

Indian Market:

  • Aluminium demand: ~1.7 million tons in Q2 FY27, up 6% YoY
  • Growth driven by automotive sector
  • Refined copper demand: 388 KT, down 3% YoY
  • Copper concentrate TC/RC: Negative $48-$58 cents/pound

Growth Strategy

  • ₹50,000 crores expansion projects under execution
  • Additional ₹50,000 crores opportunities under evaluation
  • Total potential investment: Over ₹1 lakh crore over next 5 years
  • Strategic ambition: Double upstream capacity
  • Target: 4x increase in downstream EBITDA by FY2030
  • Focus on non-LME linked businesses (currently ₹6,860 crores)

Sustainability Initiatives

  • LTIFR: 0.16 for the quarter
  • 62% total waste recycled or reused
  • 93% bauxite residue recycling (excluding Utkal)
  • 77% ash recycling
  • 110% copper slag recycling
  • 33% water recycling in aluminium business
  • 643 MW renewable energy capacity
  • Target: 884 MW renewable energy by FY27 exit
  • GHG footprint: 19.4 tons CO2 per ton of aluminium
  • Cumulative tree plantation: 6.8 million trees

Guidance

  • FY27 capex: ~₹12,000 crores
  • FY28 capex: Substantially higher (to be provided with February results)
  • Novelis deleveraging target: 2.5x-2.8x net debt/EBITDA over next two years
  • India business target: 1.0x-1.5x net debt/EBITDA during expansion
  • Consolidated target: Maintain ~2x net debt/EBITDA