National Aluminium Company Limited – Investor Presentation Summary

Key Operational Highlights

  • Bauxite production: 1,622 '000T in Q2 FY27 (9% YoY decrease from 1,780 '000T in Q2 FY26)
  • Alumina Hydrate production: 655 '000T in Q2 FY27 (3% YoY decrease from 657 '000T in Q2 FY26)
  • Metal production: 120 '000T in Q2 FY27 (8% YoY increase from 119 '000T in Q2 FY26)
  • Coal production: 1,095 '000T in Q2 FY27 (37% YoY increase from 941 '000T in Q2 FY26)
  • Thermal Power generation: 1,634 MU in Q2 FY27 (63% YoY increase from 1,437 MU in Q2 FY26)

Key drivers of operational performance: Unlocking higher productivity through optimal use of installed capacities and driving cost efficiency through reduction in specific consumptions.

Segment-wise Performance

Sales Performance:

  • Alumina Export: 305 '000T in Q2 FY27 (16% YoY decrease from 365 '000T in Q2 FY26)
  • Alumina Domestic: 35 '000T in Q2 FY27 (29% YoY increase from 31 '000T in Q2 FY26)
  • Metal Export: 2 '000T in Q2 FY27 (not comparable to Q2 FY26)
  • Metal Domestic: 119 '000T in Q2 FY27 (63% YoY increase from 112 '000T in Q2 FY26)

Explanation of significant changes in segment performance: Increased domestic metal sales driven by strong local demand, while alumina exports decreased due to market conditions.

Financial Highlights

Revenue: Rs. 3,805 crore

Other Operating Income: Rs. 39 crore

Revenue from Operations: Rs. 4,195 crore

Other Non-Operating Income: Rs. 248 crore

Total Income: Rs. 5,667 crore

Operating Expenses: Rs. 3,008 crore

EBITDA (Excl. Other Income): Rs. 2,695 crore

Depreciation: Rs. 178 crore

Finance Costs: Rs. 10 crore

PBT: Rs. 2,471 crore

PAT: Rs. 1,835 crore

YoY/QoQ comparison: PAT decreased 28% YoY from Rs. 2,433 crore in Q2 FY26 and decreased 8% QoQ from Rs. 2,002 crore in Q1 FY27

Drivers of financial performance: Higher revenue growth offset by increased operating expenses and market conditions affecting profitability.

Key Risks: Raw material price fluctuations, geopolitical tensions affecting LME prices, Chinese production and export levels, Federal Reserve monetary policy changes.

Geographical Revenue Split

Domestic vs Export Revenue: Not explicitly specified in quantitative terms, but sales data shows:

  • Export sales: Alumina 305 '000T + Metal 2 '000T
  • Domestic sales: Alumina 35 '000T + Metal 119 '000T

Regional Breakdown: Not specified

Balance Sheet Snapshot

Net Debt/Equity: Not specified

Reserves: Not specified

Current Assets/Liabilities: Not specified

Working Capital/Leverage Metrics: Not specified

Financial Health Insights: Not specified

Capex & Cash Flow Health

Capital Expenditure: Not specified for current period

Free Cash Flow: Not specified

Operating Cash Flow: Not specified

Net Debt Movement: Not specified

Investment Rationale: Focus on capacity expansion and value-added products including expanded refinery capacity and smelter capacity addition.

Strategic & R&D Initiatives

Investments in Innovation: 14.6km friendly Bauxite Transportation conveyor belt, 9km 2nd Conveyor system, wind power generation (198 MW, 307 MU generated in FY25-26), rooftop solar (1,060 kWp)

Expected impact on growth: Expanded refinery capacity to protect bottom line during LME downswing; smelter capacity addition to enable extrusions and other value-added products

Strategic Rationale: Building sustainable competitive advantage via secured raw material linkages and strengthening operational efficiency

Industry Trends & Business Environment

Macro/Industry Trends: Global inventories at historically low levels (0.23 million tonnes), market expected to be in deficit during Q4 2026 before moving toward balanced position in 2027

Impact on Company: LME Aluminium price outlook for Q4 2026 expected to average between US$2,950–$3,150/t, influenced by geopolitical tensions, low inventories, and Chinese production levels

Management Commentary & Growth Outlook

Strategic Outlook: India expected to remain one of the fastest-growing aluminium markets globally with domestic demand projected to grow at 6–8% CAGR through 2030 (Source: NITI Aayog, 2026)

FY Guidance: Not explicitly specified

Market Share Targets: Not specified

Risks and Opportunities: Upside risks include renewed Hormuz disruption, China capacity enforcement, weaker USD; Downside risks include faster Gulf restarts, China/Indonesia export surge, stronger-than-expected Fed tightening

ESG Updates

Environmental Initiatives: Afforestation, waste utilisation & reduction, advanced pollution control technologies, water pollution management, biodiversity protection, efficient fuel handling

Social Initiatives: Education programs (Indradhanush sponsoring 1,500 students, NALCO Ki Ladli assisting 1,600 meritorious girl students), healthcare (09 Mobile Health Units covering 250 villages treating 120,000 patients annually), women empowerment (SHG Group – Sakha Foundation with 50 beneficiaries)

Governance: 10 Board Level Committees (though Audit Committee and Nomination & Remuneration Committee not in position due to absence of adequate independent directors), 17 Core Policies & Guidelines, Excellent Rating in FY25-26 self-appraisal reports to DPE