Hindalco Record Earnings FY25 Reach All-Time High with Strong Domestic Performance

Hindalco

Hindalco record earnings FY25 achieved unprecedented levels as the Indian aluminium producer posted its highest-ever EBITDA of Rs 35,500 crores ($4.1 billion) for the financial year ending March 2025. The Hindalco record earnings FY25 results show EBITDA rising 38% from the previous year on revenues climbing 10% to Rs 2.38 trillion, with the final quarter also reaching a new quarterly record driven by strong domestic performance and lower input costs across both aluminium and copper operations.

Upstream Aluminium Business Delivers Exceptional Growth

Hindalco record earnings FY25 were primarily driven by exceptional performance in the upstream aluminium business, which posted EBITDA of Rs 16,262 crores, representing a remarkable 78% increase from the previous year. The fourth quarter upstream aluminium EBITDA reached Rs 4,838 crores, up 79% year-on-year, driven by lower input costs and favourable macros, with industry-best margins of 47%. The downstream aluminium business also contributed positively with EBITDA rising 16% to Rs 633 crores for the full year.

Meanwhile, the strong performance reflects successful cost management and operational efficiency improvements across Hindalco's integrated aluminium operations. The company secured the Meenakshi coal mines with annual capacity of 12 million tonnes, boosting resource securitization and strengthening its cost competitiveness. Lower input costs, particularly coal and power expenses, significantly improved profitability margins throughout FY25.

Copper Business Achieves Record Performance Levels

However, Hindalco's copper business also delivered outstanding results with record EBITDA of Rs 3,025 crores, up 16% from the previous year, backed by improved volumes and higher realizations. Domestic Copper Rod sales crossed 100 KT for the first time, demonstrating strong market demand for value-added copper products. The copper business benefited from robust domestic sales and higher by-product realizations throughout the financial year.

Therefore, the integrated approach across both aluminium and copper operations created synergistic benefits that enhanced overall profitability. Hindalco's focus on value-added products in both segments supported premium pricing while maintaining strong volume growth. The company's strategic investments in expanding copper production capacity positioned it well to capture growing domestic demand.

Strong Financial Metrics Support Future Growth Plans

Furthermore, Hindalco improved its financial strength significantly during FY25, reducing its consolidated net debt to EBITDA ratio to 1.06x from 1.21x a year earlier. FY25 Consolidated PAT reached Rs 16,002 crores, up 58%, while Q4 consolidated PAT increased to Rs 5,284 crores, up 66% over the prior year period. These strong cash generation capabilities support the company's ambitious expansion plans across both aluminium and copper segments.

As a result, Hindalco announced capital expenditure targets of Rs 7,500-8,000 crores for the current fiscal year to fund strategic growth initiatives including alumina refinery expansion, aluminium smelter capacity additions, and copper smelter expansion projects. The company's subsidiary Novelis also delivered resilient performance with strong shipments in beverage packaging applications, contributing $683 million in net income, up 14% over the previous year.

The Metalnomist Commentary

Hindalco's record FY25 performance exemplifies how integrated metals producers can leverage operational excellence and strategic resource security to achieve exceptional financial results, particularly when supported by favorable macroeconomic conditions and lower input costs. The company's success in both aluminium and copper segments demonstrates the value of diversified metals portfolio approach, while strong cash generation provides solid foundation for the ambitious growth investments planned across both business segments.