Analyst Concall
See FY26 alumina exports rising amid high spot sales - NALCO
This story was originally published at 14:57 IST on 8 August 2025
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--NALCO: LME aluminium prices to be affected amid US tariffs, uncertainties
--CONTEXT: Comments by NALCO's mgmt in post-earnings analyst call
--NALCO: 5th stream alumina refinery to see mechanical completion by Mar
--NALCO: See captive coal mines output at 4 mln tn in FY26
--NALCO: See 5th stream alumina refinery commercial production start in Jun
--NALCO: FY26 alumina exports seen higher on year amid increased production
--NALCO: In value added products, focussing on wire rods, may take 2 yrs
--NALCO: Exploring having presence in aluminium foil in value-added products
--NALCO: See domestic aluminium demand growing in line with GDP growth
--NALCO:Around 80% alumina exports on spot basis, 20% on long-term contracts
By Rajesh Gajra
NEW DELHI – The tripling of alumina export sales of National Aluminium Co. Ltd. in the June quarter compared to the year-ago quarter was largely on account of spot contracts. In a post-earnings call with investors and analysts Friday, the management said around 80% of current alumina export sales are on spot basis and the remaining is through long-term contracts.
NALCO's export volumes of alumina jumped 206% on year to 274,600 tonnes in the June quarter. It was, however, lower than the March quarter export sales of 334,300 tonnes. In the domestic market, the company's alumina sales volume rose nearly three times to 29,100 tonnes from 9,800 tonnes in the year-ago quarter.
The management said it expects alumina exports volume in 2025-26 (Apr-Mar) to be higher than in FY25. The alumina export sales were 1.06 million tonnes in FY25, down from 1.11 million tonnes in FY24. Domestic market sales in alumina were 41,400 tonnes in FY25 as against 56,700 tonnes. .
The management said NALCO is a global leader in producing alumina and bauxite at the lowest cost. Alumina capacity expansion is a key focus for the company, it said.
The management said the ongoing 5th stream alumina refinery expansion project will see mechanical completion by March next year and commencement of commercial production by June. The cost of alumina production in this new refinery unit "will be almost similar to the cost which we are producing now," it said.
According to the management, no loans have been taken for the alumina refinery expansion. It said the new unit will have better technology "where the caustic soda consumption will be on the lower side."
Aluminium prices on the London Metal Exchange had trended downwards in April but had picked up in May and June. The management said in Friday's call that the LME price will be affected by the current global uncertainties arising out of the US tariffs situation. It said rising oil prices will also have an impact, as LME prices normally move inversely with oil prices.
The domestic requirement for aluminium, which is almost proportional to the GDP growth, may increase around 7% for the full year, according to NALCO's management. Due to the ongoing infrastructure development "a lot of the demand (for aluminium) in the domestic market is still there," it said.
To a question on the company's plans for value-added products in aluminium, the management said the company is exploring aluminium foils for which it is taking the services of a consultant to suggest what kind of aluminium foils should be made and what will be the market for that. "Very small investment is required in that," the management said.
The company is also focussed on increasing the production of wire roads for which it is currently revising the cost estimates. It will be going for tendering thereafter and the "whole activity may take around two years for the mill to come," it said. To a query on captive coal mines, the management said it is aiming for full capacity utilisation of 4 million tonnes in FY26. It said around 60% of the company's coal requirements will be met through the supplies from its captive coal mines, which will provide cost advantages to the company.
NALCO had announced its June quarter earnings Thursday. The company reported a 77% on-year increase in net profit to INR 10.64 billion on the back of a 33% rise in revenue from operations to INR 38.07 billion.
At 1407 IST, shares of the company traded at INR 187.87, down 1%, on the National Stock Exchange. End
Edited by Tanima Banerjee
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