Financial Performance Overview
National Aluminium Company Limited (NALCO) reported strong financial results for FY 2025-26 with revenue from operations reaching ₹17,843.05 crore, representing 6.3% YoY growth. Net profit increased 9.2% to ₹5,815.76 crore, driven by improved aluminium segment performance which grew 16.5% to ₹12,945 crore, though chemicals segment declined 12% to ₹6,694 crore.
Dividend Distribution and Capital Allocation
The company declared total dividends of ₹2,112.12 crore for FY26, maintaining a payout ratio of 36.32% of PAT. This included three interim dividends totaling ₹10.50 per share and a recommended final dividend of ₹1.00 per share. The Government of India received ₹1,036 crore as its 51.28% share. Return on equity remained strong at 26.6% despite capital expenditure of ₹2,068 crore.
Operational Highlights and Segment Performance
Production metrics showed bauxite excavation of 77.01 lakh tonnes, alumina hydrate production of 23.00 lakh tonnes, and aluminium cast metal output of 4.72 lakh tonnes. The company generated 6,953 MU of net power and 307 MU from wind power. Geographically, 73.5% of revenue came from domestic markets while exports contributed 26.5% at ₹4,702 crore.
Corporate Governance and Regulatory Compliance
NALCO scheduled its 45th AGM for 31st August 2026 via video conference to adopt financial statements and appoint new directors. However, the company faced ongoing non-compliance with SEBI LODR Regulation 17(1) regarding board composition, lacking sufficient non-executive and independent directors throughout FY26, resulting in fines from NSE and BSE.
Joint Ventures and Strategic Investments
Investments in joint ventures totaled ₹499.58 crore across four entities. The board approved winding up Utkarsha Aluminium due to commercial unviability and increased exposure to Khanij Bidesh India with additional equity contribution up to ₹1,000 crore. GACL-NALCO Alkalies saw procurement of ₹551 crore in caustic soda lye.
ESG and CSR Initiatives
NALCO spent ₹99.97 crore on CSR activities focused on aspirational districts, supporting education programs and healthcare initiatives. The BRSR Core report disclosed value chain metrics with 9 core attributes receiving reasonable assurance from TÜV SÜD. MSME procurement reached 61.56% of total inputs, excluding exempted items.
Contingent Liabilities and Risk Factors
Total contingent liabilities stood at ₹2,179 crore, including disputed tax demands of ₹809 crore and custom duty claims of ₹192 crore. The company faced ₹1,113 crore in disputed statutory dues across income tax, GST, and royalty payments. Wind power plants in Rajasthan with ₹50 crore carrying value remained impaired due to lack of PPA since 2019.
Outlook and Strategic Direction
Despite governance challenges, NALCO maintained strong operational performance with current ratio improving to 3.60 and inventory turnover at 9.46. The company continues investments in renewable energy with 15MW wind project in Tamil Nadu and 7,000 kWp solar plant installation ongoing, positioning for sustainable growth in the aluminium sector.